Delaware businesses to see workers’ comp insurance rates decrease

Delaware Insurance Commissioner Trinidad Navarro recently announced workers’ compensation insurance rates will decrease for the ninth year in a row, effective Monday, Dec. 1.

The voluntary market is expected to decrease average loss costs by 11.6%, and the residual market will see an average rate reduction of 9.08%. The announcement follows confirmation of the Delaware Compensation Rating Bureau filing by independent actuaries, and a public hearing with DCRB and the state’s ratepayer advocate. Actual savings will vary by policy.

“For nearly 10 years, my administration has been able to approve rate decreases that help local businesses, and can attract new companies and jobs to Delaware,” said Navarro. “Delaware’s businesses used to pay some of the highest workers’ compensation premiums in the country, but bold policy changes have been successful in addressing that problem. Our businesses are also doing their part by committing to reducing risk through employee protections and creating safe work environments.”

Workers’ compensation insurance provides coverage when an employee is hurt on the job; it 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.

These lower rates are just one component of several department efforts to help businesses. As of year-end 2024, nearly 1,000 employers are saving even more on their premiums by participating in the department’s Workplace Safety Program, saving approximately $4.9M last year. Eligible businesses can earn up to a 19% discount on their insurance by successfully undergoing annual safety inspections and complying with recommendations.

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.

Workplace Safety Program inspectors are independent safety professionals contracted by the department, not state or Occupational Safety and Health Administration employees. Only benefits can be gained by participating; failure to qualify cannot be the basis for premium increases or sanctions imposed by other safety officials.