News & Media

Tuesday, August 7, 2012

Attention U.S. Government Contractors and Subcontractors:


Important New Changes to DBA Insurance Program 

Effective immediately, the U.S. State Department's exclusive agreement with insurer CNA for the provision of Defense Base Act (DBA) coverage has been suspended.  That means that all contractors seeking new DBA policies, or those with existing ones with renewal dates of July 22, 2012 or later, should now contact authorized open market insurers directly to obtain the necessary coverage.   

Clements Worldwide, a DBA insurance provider, recommends contractors to: 
 1. Get Started ASAP on Your Application
 - The application process, which includes submitting specifics about security, risk, and claims information, will take additional time to complete.  Brokers and insurers rely on a comprehensive application package submitted by contractors seeking DBA coverage in order to obtain the best quotes for them.

- Additionally, insurers will need several additional days to respond with competitive quotes, further delaying the process of securing DBA cover.

2. Adjust Your Budget for Potentially Higher Premiums
- Minimum premiums now apply, which could impact organizations operating in Iraq and/or Afghanistan.

- Basic coverage will remain the same for a DBA policy. However, certain extensions (such as Evacuation) may have varying limits depending on the insurer.

To avoid any business disruption arising from new changes to DBA insurance programs, contact Clements' DBA Specialist Smita Malik at 202.872.0060 or

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