DBA Insurance Waiver Countries

If DBA Insurance waivers seems to be a familiar topic it could be because of Guam.  As recent as May 2020, the waiver in place for Guam changed.  At this time, the Waiver only applied to Third Country Nationals (TCN), not residents of Guam.  This left a hole in the protection of construction jobs for Guam residents because the cost of insurance may be lower for TCN’s under contract than hiring locals.

So, what does all this mean?

Waivers Are In Place For DBA Insurance

Waivers exist for DBA Insurance in number of countries.  The waiver applies to Third Country Nationals and Locals only, not US citizens.  For specifics surrounding waivers and how to apply for one I reference https://www.dol.gov/agencies/owcp/dlhwc/FAQ/DBAFaqs#27 where it states “The request for waiver can be made by submitting a request for DBA waiver package, by the head of a department or agency of the United States government. The package can be mailed to the Director, OWCP, U.S. Department of Labor, OWCP, Division of Longshore and Harbor Workers’ Compensation, 200 Constitution Avenue NW, Rm C-4319, Washington, DC 20210. The package can also be sent by e-mail to DLHWC-Public@dol.gov.”

The Request for Waiver – Defense Base Act form BEC 565 is a one page application used to seek waived status.

Important Waiver Aspects To Consider

US citizens are not part of the waived DBA Insurance.  Furthermore, if a person is hired in the US or a resident of the US, then the waiver would not apply to them as well.

Contained within the waiver language is the requirement for those waived from DBA Insurance be afforded workers’ compensation protection.  In other words, the insurance for lost wages and medical injuries still apply, just not through DBA Insurance coverage.

If an employer elects to secure DBA Insurance in a country that is waived by the Department of Labor, they may do so.  This topic is more detailed than can be outlined in this post.  I suggest seeking guidance from you insurance professional as to alternatives available regarding international workers compensation placement or third country national programs pursuant to the ACT