AIG WorldSource Enhances DBA Insurance Program

April 28, 2005

AIG WorldSource(R), a division of the Domestic Brokerage Group of American International Group, has announced enhancements to several key components of its Defense Base Act (DBA) coverage program. AIG WorldSource will now provide DBA policies for sub-contractors in conjunction with a DBA policy for a primary contractor.

“If a sub-contractor fails to secure DBA coverage, then the liability on work-related injuries falls to the primary contractor, and that liability is not automatically covered under the primary contractor’s DBA policy,” observed AIG WorldSource President Gordon Knight. “Our sub-contractor enhancement is designed to eliminate this gap in coverage and make it easier for smaller sub-contractors to obtain DBA insurance without being subject to a minimum policy premium. While we underwrite primary and sub-contractor risks individually, the similarity in risk profile and type of work being conducted in DBA-mandated locations allows us to underwrite the primary and sub-contractor policies simultaneously.”

The announcement explained that such coverage is mandated by the Defense Base Act of 1941. “All primary and sub-contractors working in overseas locations on contracts funded by the United States government must secure workers compensation coverage known as DBA insurance. Up to this point, sub-contractors have generally had to secure their own DBA insurance independent of their primary contractor relationships.” The coverage extends to sub-contractors policies covering Kidnap & Ransom/Extortion and Accidental Death & Dismemberment.

“In addition to the sub-contractor enhancement, AIG WorldSource’s DBA program now includes Accidental Death and Dismemberment (AD&D) insurance, which provides 24-hour AD&D coverage, as well as travel and medical assistance services for covered employees,” the bulletin continued. ” The K&R coverage also includes certain costs associated with a kidnapping, such as ransom monies, consulting fees, legal costs and related expenses.

“AIG WorldSource is committed to offering comprehensive DBA coverage to contractors working in Iraq,” Knight continued . “No matter how volatile the environment, AIG WorldSource can help. We understand the local issues and have on-the-ground claims resources to help solve problems quickly and efficiently. No other carrier can match our regional infrastructure and commitment to the DBA market.”

For more information on AIG WorldSource’s DBA program, contact John Thompson, Assistant Vice President of Marketing, AIG WorldSource, at (212) 458-2123 or

Was this article valuable?

Here are more articles you may enjoy.