Loyola Law Schoo

Loyola Law Schoo

U. S. Department of 

U. S. Department of 

OWCP 

DBA Conferenc

DBA Conferenc

October October 2008

What Insurance is Needed and How to Bu

What Insurance is Needed and How to Bu

John Chamberlain John Chamberlain

Office of Workers Office of Workers’ Compensation Programs Compensation Programs

Division of Longshore & Harbor Workers Division of Longshore & Harbor Workers’ Compens

Compens
Panel

John Chamberlain John Chamberlain

Office of Workers Office of Workers’ Compensation Programs Compensation Programs

Division of Longshore & Harbor Workers Division of Longshore & Harbor Workers’ Compen

Compen

Mark Reinhalter Mark Reinhalter

Counsel for Longshore Counsel for Longshore

Office of the Solicitor, Washington, DC Office of the Solicitor, Washington, DC

Christopher Moody II Christopher Moody II

Executive Vice President Executive Vice President

Moody Insurance Worldwide, Clarksburg, MD Moody Insurance Worldwide, Clarksburg, MD
Who is Responsible to Buy Insuran

Who is Responsible to Buy Insuran

Employers Employers

Æ Subcontractors Subcontractors

Æ Subordinate contractors Subordinate contractors

The responsibility remains with the employ

The responsibility remains with the employ

whether a broker or agent is used or not. whether a broker or agent is used or not.Some companies will only accept business 

Some companies will only accept business 

a broker or agent. a broker or agent.
Who is NOT responsible for Insura

Who is NOT responsible for Insura

 The broker or agent The broker or agent The contracting officer The contracting officer The contracting agency The contracting agency The Department of Labor The Department of Labor The State Assigned Risk Pool The State Assigned Risk Pool
Single Source Contracts Single Source Contracts

Some agencies have arranged single s

Some agencies have arranged single s

insurance for all or some of their contr

insurance for all or some of their cont

This is a matter for the agency in ques

This is a matter for the agency in ques

not for the Department of Labor. not for the Department of Labor.
Multiple Contracts Multiple Contracts

Some employers have concurrent cont

Some employers have concurrent con

with different agencies. They may ne

with different agencies. They may ne

different policies with different insure

different policies with different insure

is quite possible that workers for the s

is quite possible that workers for the s

employer may be injured in the same employer may be injured in the same incident and be covered by different incident and be covered by different insurance policies. insurance policies.
Short Contracts Short Contracts

There is no exception from the prov

There is no exception from the prov

of the Act for of the Act for “short trip short trip” overseas, 

overseas, 

“only attending a meeting only attending a meeting”, by an , by an 

executive ( executive (“not a worker not a worker”), “overse

overse

not working not working”.

Even a CEO is an employee, and A

Even a CEO is an employee, and A

employees are covered. employees are covered.
Minimum Premiums Minimum Premiums

Premiums are not set by, nor regula

Premiums are not set by, nor regula

the Department of Labor. Many the Department of Labor. Many companies will have a minimum for 

companies will have a minimum fo

as for any other, insurance. Single s

as for any other, insurance. Single 

contracts will not normally call for a contracts will not normally call for a minimum premium. minimum premium.
Can the cost of the Insurance be reimb

Can the cost of the Insurance be reimb

The manner in which the employer 

The manner in which the employer 

compensated is defined by the cont

compensated is defined by the cont

If there is a single source insurance 

If there is a single source insurance 

employer must use it. employer must use it.
Waivers Waivers

A waiver request should be sent by t

A waiver request should be sent by t

Labor Advisor for the Agency reques

Labor Advisor for the Agency reques

It should not be sent by the contract

It should not be sent by the contract

their broker, or the contracting offic

their broker, or the contracting offic
Waivers Waivers

The waiver will only cover worker

The waiver will only cover worker

are covered by another national or are covered by another national or provincial workers provincial workers’ compensation 

compensation 

the entirety of their claim, without the entirety of their claim, without exclusions for war risks, nuclear, exclusions for war risks, nuclear, biological, chemical or radiologica

biological, chemical or radiologic

any other exclusions. any other exclusions.
Mistaken Reliance on a Mistaken Reliance on a 

“Waiver

”

If someone believes that there is, h

If someone believes that there is, h

been told that there is, or thinks th

been told that there is, or thinks th

ought to be a waiver for any partic

ought to be a waiver for any partic

contract or location, they are NOT contract or location, they are NOT excused from their obligations un

excused from their obligations un

Act. Nor are they excused if their Act. Nor are they excused if their subcontractor believed, were told 

subcontractor believed, were told 

thought the same. thought the same.
Private Insurance Programs Private Insurance Programs

Private Insurance Programs may Private Insurance Programs may supplement, but cannot substitute fo

supplement, but cannot substitute fo

mandatory DBA cover. mandatory DBA cover.Payments made under a private insu

Payments made under a private insu

cannot be offset against DBA under cannot be offset against DBA under 
Laws of Other Countries Laws of Other Countries

If there is a concurrent remedy for fo

If there is a concurrent remedy for fo

nationals under a local workers nationals under a local workers

’

compensation act, there will be a cre

compensation act, there will be a cre

under 

§ 3(e).
Costs not Covered by the DBA Costs not Covered by the DBA

If an employer wishes to provide cov

If an employer wishes to provide cov

items not covered by the DBA, such 

items not covered by the DBA, such 

insurance for relatives not covered a

insurance for relatives not covered a

dependants under the Act, these ben

dependants under the Act, these ben

are separate from the DBA. are separate from the DBA.