If you hire employees in Delaware—even just one—Delaware workers’ compensation insurance is required by law. Under Title 19, Chapter 23 of the Delaware Code, employers must provide no-fault benefits for workplace injuries or illnesses. The state’s system protects both workers and businesses from the financial impact of on-the-job accidents.
This guide explains the workers’ comp requirements in Delaware, what coverage includes, how much it costs, and how to stay fully compliant.
Who Must Carry Coverage in Delaware?
If your business has at least one employee, you are required to maintain an active workers’ compensation policy.
Mandatory coverage applies to:
- Full-time, part-time, and seasonal workers
- Out-of-state employers with operations in Delaware
- Corporations, LLCs, partnerships, and sole proprietors with staff
Exemptions (with limits):
- Farm workers: Coverage depends on whether the employer voluntarily provides workers’ compensation insurance
- Independent contractors – Not automatically covered, but misclassification can result in heavy penalties (in construction, contractors cannot be considered independent contractors and are deemed employers)
- Executive officers and LLC members – May opt out with state approval
Delaware employer insurance is strictly enforced. Business owners should carefully document roles, contracts, and policy status to avoid violations.
High-Risk Industries Need Extra Oversight
Some industries face higher injury rates and tighter enforcement:
- Construction workers’ comp Delaware: Contractors must ensure all workers—including subcontractors—are covered. The state often audits job sites, and uncovered subs can trigger fines or shutdowns.
- Healthcare workers’ compensation Delaware: Nurses, techs, and aides face regular injury risks from lifting patients or handling biohazards. Employers in this space need clear, up-to-date policies.
What Delaware Workers’ Comp Covers
The program is no-fault, meaning injured workers don’t need to prove negligence to qualify for benefits. Coverage includes:
- Medical benefits: Hospital visits, surgery, prescriptions, physical therapy, and rehab
- Temporary total disability (TTD): Full wage replacement while the employee recovers
- Permanent disability: Payments based on lasting impairment or reduced earning capacity
- Death benefits: Paid to dependents and include funeral costs and lost income support
Example: A nurse at a Wilmington clinic strains her back lifting a patient. Healthcare workers’ compensation Delaware will cover treatment and lost wages—protecting both the worker and the business from financial loss.
Want a simple breakdown of how workers’ comp works? Read our guide: Workers’ Comp Insurance Basics – What You Should Know.
Common Claims and Real Risks
Across Delaware, these injury types drive most claims:
- Overexertion injuries: Found in warehouses, healthcare facilities, and construction
- Example: A landscaper in Newark injures his shoulder lifting equipment
- Slips and trips: Frequent during winter months in office buildings, shops, and restaurants
- Equipment-related accidents: Especially in construction and manufacturing
- Repetitive motion injuries: Affect administrative and assembly line workers
- Example: An office manager in Dover develops carpal tunnel after years of data entry
Delaware Workers’ Comp Insurance Costs
Delaware workers’ comp insurance costs depend on several factors, but industry classification and payroll size are the biggest drivers.
Recent cost estimates:
- Low-risk jobs (admin, sales): $0.80–$1.20 per $100 in payroll
- Moderate-risk roles (retail, clerical): $1.20–$2.00
- High-risk work (roofing, excavation): $4.00–$12.00+
Factors that affect your rate:
- Payroll size: Higher total payroll = higher premiums
- Job risk level: A roofer costs more to insure than a receptionist
- Claims history: Past claims increase renewal rates
- Safety programs: Enrolling in certified safety programs can reduce costs
The Delaware Workers’ Comp Claim Process
The Delaware workers’ comp claim process has specific deadlines and legal steps:
- Employee notice: Workers must notify their employer immediately of injuries (failure to provide notice within 90 days will prevent compensation until proper notice is given)
- Employer reporting: Businesses must file the First Report of Injury within 10 days of knowledge
- Dispute resolution: The Industrial Accident Board (IAB) handles conflicts. Appeals go to Superior Court
Delays or missed filings may reduce benefits or cause penalties.
What Happens If You Don’t Comply?
Delaware employer insurance compliance enforcement includes:
- Fines of $100–$250 for failure to file First Report of Injury
- Court action in cases of fraud or long-term noncompliance
Smart Steps for Business Owners
Here’s how to stay protected and compliant:
- Confirm all employees and subcontractors are covered
- Monitor roles to avoid misclassifying staff
- Enroll in a certified workplace safety program
- Report injuries promptly and follow the claim process
- Review your policy annually for cost savings
Call (855) 718-7552 to speak with a licensed Delaware agent.
