In addition to the rising number of fatalities among military personnel stationed in Iraq, the United States is facing heavy losses among employees of independent contractors doing business in the country. The economic impact of those losses is hitting workers’ compensation carriers, as well as costing the government in reimbursements to insurers, according to the U.S. Department of Labor.

The Defense Base Act requires that all U.S. government contractors and subcontractors secure workers’ compensation insurance for their employees working overseas. Under the War Hazard Compensation Act, if an injury or death claim is related to a war-risk hazard, the government must reimburse insurers.

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