A legislative piece that acts as an insurance cover for all the US military contract workers across borders is termed the defense base act. The act is kind of a compensation plan for such workers. This act covers the wage losses and other medical benefits for civilian contractors who might get injured overseas. Contractors who cannot demonstrate that they have such policies to protect their employees may have to pay a fine and also lose their government contracts. The Defense Base Act insurance applies to the contractors on US military bases and the people who are contracted on overseas public works projects deemed crucial to the United States’ national security.