DBA Insurance for USAID contracts
Whenever a government contract is awarded for work overseas, it will require Defense Base Act Insurance. For contracts won under USAID (United States Agency for International Development) the requirements remain the same, however obtaining the DBA Insurance must be done by a different insurance brokerage arrangement.
USAID Defense Base Act Insurance through AON Risk Insurance Services West, Inc.
Unlike working with any other federal agency, USAID requires all awarded contractors to seek coverage through a mandated program facilitated by AON (contact information below). The quotes and programs are all done through one broker.
AON Risk Insurance Services West, Inc.
2033 N. Main St., Suite 760
Walnut Creek, CA 94596-3722
Hours: 8:30 A.M. to 5:00 PM, Pacific Time
Primary Contact: Fred Robinson
Phone: (925) 951-1856
Fax: (925) 951-1890
Using your current insurance broker to secure DBA Insurance
USAID has restricted access to their DBA Insurance program in order to control the rates issued by the insurance company. Unlike other DBA Insurance access points which may include your current insurance broker, not AON, the USAID Defense Base Act Insurance must be placed by one single broker.
This is not a bad thing, it is just different. The rates are competitive under the AON program, as they should be since you cannot use any other option for the insurance, and the insurance is exactly the same as with the “open” insurance market.
USAID DBA Insurance Rates 2022
There are three categories in which rates are provided.
- Services – Rate is $2.00/$100.00 in payroll
- Construction – Rate is $4.50/$100.000 in payroll
- Security – Rate is $7,50/$100.00 in payroll
Although the rates listed are effective as of March 2022, they are subject to change. In order to keep up with the changes, USAID will publish announcements. As an active employer with USAID contracts, I suggest checking the website before renewal to check on rate or other regulatory changes.
Going through AON is NOT required for Government Contracts with DoD, DoS, USACE
If you have contracts with other government agencies outside of USAID, you do not have to go through AON to seek DBA Insurance. You are able to seek this insurance through any other insurance broker/agent. There are no restrictions.
If your current insurance broker is not familiar with DBA Insurance, I suggest you seek the guidance of one that is. DBA is not difficult it’s just different.
Brian Smith is an insurance broker with the Insurance Office of America. He specializes in Defense Base Act Insurance as well as other insurance placements for government contractors.