Delaware's workers comp insurance rates continue to drop

The decrease reflects  legislative changes made in workers compensation program after employers began to consider moving operations to other states, such as Maryland.

After ranking in the top 10,  Delaware's rates are now 28th among the 50 states. The state's rates are still higher than those in neighboring Maryland and Pennsylvania.

 “Delaware’s businesses used to pay some of the highest workers’ compensation premiums in the country, but I am proud to say that from the start of my administration to today, we have been able to approve rate decreases every single year,” said Insurance  Commissioner Trinidad  Navarro. “In fact, these consecutive and significant reductions prompted us to work with partners to amend the premium threshold at which companies can receive additional premium discounts through participation in our Workplace Safety Program.”

According to the insurance department, the  decrease in worker’s compensation insurance rates continues the reversal of voluntary and residual market trends. With the residual market expected to see a greater rate decrease, it shows that companies who previously could only obtain coverage in this "last resort" market, due to cost, high risk, or claims history, can now obtain traditional voluntary market coverage. This is the third year of this trend, which indicates substantial improvement in coverage affordability and employee safety.

 Workers’ compensation insurance provides coverage when an employee is hurt on the job and can provide medical coverage as well as payments for lost wages if a person is unable to work due to their injury. Lower premiums don’t change the amount of compensation an injured employee receives.

 As of year-end 2023, nearly 1,000 employers are saving even more on their premiums by participating in the department’s Workplace Safety Program, saving approximately $5.6 million last year.

Eligible businesses can earn up to a 19% discount on their insurance by successfully undergoing annual safety inspections and complying with recommendations.

When Senate Bill 306 goes into effect early next year, alongside any relevant regulations, eligibility changes will result in the Program becoming available to an estimated 2,120 additional employers.

 Businesses eligible for the Workplace Safety Program are notified each year seven months prior to their renewal date. Organizations interested in participating can access questionnaires online and contact safety@delaware.gov to begin the process.

The department has updated the Inspection Fee Schedule for program participants, as indicated on the questionnaire.

Workplace Safety Program inspectors are independent safety professionals contracted by the department, not state employees or OSHA.

Only benefits can be gained by participating; failure to qualify cannot be the basis for premium increases or sanctions imposed by other safety officials, a release.