FAR 52.228-3—Workers’ Compensation Insurance (Defense Base Act).
Plain-English Summary
FAR 52.228-3 implements the Defense Base Act (DBA) workers’ compensation framework for covered overseas and related federal contract work. It tells contractors how to secure and maintain DBA coverage, which employees are covered, and what benefits must be provided for disability, medical care, and death. It also sets out the required Department of Labor reporting and claims forms: LS-202 for injury or death reporting, LS-207 for controversion, LS-206 for payment without award, and LS-208 for final payment or suspension. The clause ties contractor performance to the Longshore and Harbor Workers’ Compensation Act as extended by the DBA, including payment timing rules and medical-care obligations, and it requires compliance with the applicable DOL regulations in 20 CFR Parts 701 through 704. It also requires flowdown of the clause to covered subcontracts. In practice, this clause is critical because DBA coverage is often mandatory for overseas federal work, and failure to secure coverage or file the required notices can create serious legal, financial, and performance risks for both contractors and subcontractors.
Key Rules
Secure DBA coverage first
Before starting performance, the contractor must establish provisions to pay disability, medical, and death benefits for covered employees. This is done by purchasing workers’ compensation insurance or qualifying as a self-insurer under the Longshore and Harbor Workers’ Compensation Act as extended by the Defense Base Act.
Maintain coverage through completion
The contractor must keep DBA benefit provisions in place for the entire period of contract performance. Coverage cannot lapse while covered work is ongoing.
Report injuries and deaths promptly
Within 10 days of an injury or death, or within 10 days after learning of it, the contractor must submit Form LS-202 to the Department of Labor. This is the required first report of injury or occupational illness.
Pay compensation on time
The contractor must pay disability or death compensation within the time limits required by the Longshore and Harbor Workers’ Compensation Act and its implementing regulations. Late payment can trigger statutory consequences.
Provide required medical care
The contractor must furnish medical treatment as required by the Longshore and Harbor Workers’ Compensation Act and DOL regulations. Medical benefits are part of the DBA protection, not optional extras.
File controversion and payment notices
If the contractor disputes a claim, it must file Form LS-207. When it makes the first compensation payment without an award, it must file Form LS-206, and when payments are suspended or finally ended, it must file Form LS-208.
Follow all DBA and DOL rules
The contractor must comply with all other provisions of the Longshore and Harbor Workers’ Compensation Act as extended by the DBA and with DOL regulations at 20 CFR Parts 701 through 704.
Flow down to covered subcontracts
The contractor must insert the substance of the clause, including paragraph (c), in all subcontracts to which the Defense Base Act applies. This ensures subcontractor employees receive the same statutory protections.
Responsibilities
Contracting Officer
Include this clause when prescribed by FAR 28.309(a) and ensure the contract reflects DBA coverage requirements for the work. The contracting officer should also understand that the clause creates mandatory contractor obligations and subcontract flowdown requirements.
Contractor
Obtain and maintain DBA insurance or self-insurance before performance begins; pay required disability, medical, and death benefits; file LS-202, LS-206, LS-207, and LS-208 as required; comply with the LHWCA and DOL regulations; and flow the clause down to covered subcontracts.
Subcontractor
When the DBA applies to the subcontract, comply with the flowed-down clause, maintain required coverage for covered employees, and meet the same reporting, payment, and medical-care obligations for its workforce.
Department of Labor
Administer the DBA/LHWCA claims and reporting framework, receive required forms, and enforce the statutory and regulatory requirements governing compensation, medical care, and claim controversion.
Covered Employee / Eligible Survivor
Provide injury, illness, or death information needed to support claims and benefit administration, and pursue benefits under the DBA/LHWCA framework when entitled.
Practical Implications
DBA coverage is often a prerequisite to starting overseas or otherwise covered work, so contractors should confirm insurance or self-insurance arrangements before mobilization.
The 10-day LS-202 reporting deadline is easy to miss, especially when injuries are reported late internally; contractors need a clear incident-reporting process.
Claims administration is form-driven, so missing LS-206, LS-207, or LS-208 filings can create compliance problems even when benefits are being paid.
Subcontract flowdown is not optional for covered work; prime contractors should verify that subcontract language and insurance arrangements match the DBA requirement.
Because the clause incorporates the LHWCA and DOL regulations by reference, contractors must look beyond the FAR text and manage the underlying statutory and regulatory deadlines, benefit rules, and notice requirements.
Official Regulatory Text
As prescribed in 28.309 (a) , insert the following clause: Workers’ Compensation Insurance (Defense Base Act) (Jul 2014) (a) The Contractor shall (1) Before commencing performance under this contract, establish provisions to provide for the payment of disability compensation and medical benefits to covered employees and death benefits to their eligible survivors, by purchasing workers’ compensation insurance or qualifying as a self-insurer under the Longshore and Harbor Workers’ Compensation Act ( 33 U.S.C. 932 ) as extended by the Defense Base Act ( 42 U.S.C.1651 , etseq. ), and continue to maintain provisions to provide such Defense Base Act benefits until contract performance is completed; (2) Within ten days of an employee’s injury or death or from the date the Contractor has knowledge of the injury or death, submit Form LS-202 (Employee’s First Report of Injury or Occupational Illness) to the Department of Labor in accordance with the Longshore and Harbor Workers’ Compensation Act ( 33 U.S.C. 930(a) , 20 CFR 702.201 to 702.203 ); (3) Pay all compensation due for disability or death within the time frames required by the Longshore and Harbor Workers’ Compensation Act ( 33 U.S.C. 914 , 20 CFR 702.231 and 703.232 ); (4) Provide for medical care as required by the Longshore and Harbor Workers’ Compensation Act ( 33 U.S.C. 907 , 20 CFR 702.402 and 702.419 ); (5) If controverting the right to compensation, submit Form LS-207 (Notice of Controversion of Right to Compensation) to the Department of Labor in accordance with the Longshore and Harbor Workers’ Compensation Act ( 33 U.S.C. 914(d) , 20 CFR 702.251 ); (6) Immediately upon making the first payment of compensation in any case, submit Form LS-206 (Payment Of Compensation Without Award) to the Department of Labor in accordance with the Longshore and Harbor Workers’ Compensation Act ( 33 U.S.C. 914(c) , 20 CFR 702.234 ); (7) When payments are suspended or when making the final payment, submit Form LS-208 (Notice of Final Payment or Suspension of Compensation Payments) to the Department of Labor in accordance with the Longshore and Harbor Workers’ Compensation Act ( 33 U.S.C. 914(c) and (g), 20 CFR 702.234 and 702.235 ); and (8) Adhere to all other provisions of the Longshore and Harbor Workers’ Compensation Act as extended by the Defense Base Act, and Department of Labor regulations at 20 CFR Parts 701 to 704. (b) For additional information on the Longshore and Harbor Workers’ Compensation Act requirements see http://www.dol.gov/owcp/dlhwc/lsdba.htm . (c) The Contractor shall insert the substance of this clause, including this paragraph (c), in all subcontracts to which the Defense Base Act applies. (End of clause)