Delaware workers' comp 101

What do Delaware small business owners need to understand about workers’ compensation insurance?

As a Delaware business owner, you must focus on many factors to run a successful business. Even the best multi-taskers can become overwhelmed when juggling different aspects of the company like sales, accounting, and operations. That’s why most entrepreneurs eventually hire a staff to help support the business. 

While creating a team is an excellent way to grow your organization, it poses different challenges, such as workers’ compensation insurance. 

If you currently have or are planning to hire a team to work for you, it’s crucial to understand the basics of workers’ comp. Learning the ins and outs of workers’ comp will allow you to explain to your employees the benefits and coverages they will receive if they are involved in a workplace accident. 

The following list provides an overview of the 10 most important aspects of Delaware workers’ compensation for business owners.

Ten facts about workers' compensation in Delaware

  1. Businesses that employ at least one full- or part-time employee must carry workers’ compensation insurance.
  2. According to the Delaware Department of Labor, if your company is involved in the farming industry, then you could be exempt from providing workers’ comp for farmworkers.
  3. A company’s workers’ compensation insurance will cover employees that endure a work-related injury, illness, or death.
  4. Once a qualifying employee submits a workers’ comp claim they could receive any of the following benefits:
    • Medical fees and expenses associated with treatment or medications
    • The replacement of lost wages due to injury or illness equaling ⅔ of the employee’s gross weekly pay
    • Death benefits in the event an employee dies as a result of a workplace injury or illness
    • Temporary and permanent disability benefits
  5. For employees to receive workers’ comp benefits, they must inform their employer within 90 days of the injury.
  6. Once an employee files a claim, as the business owner, you must file a First Report of Injury within 10 days and send it to the Delaware Office of Workers’ Compensation.
  7. Instead of weekly installment payments, employees have the option to receive their benefits in a lump sum settlement. For this to occur, both the employee and company owner must agree on the settlement amount. 
  8. Delaware law prohibits business owners from taking disciplinary action against an employee that files a workers’ comp claim.
  9. Executives and officers can exclude themselves from the workers’ comp policy by filing a Delaware Executive Officer Exclusion Form. 
  10. Companies that fail to purchase or maintain workers’ comp insurance could incur fines and significantly higher insurance premium rates.

Remember, every situation is different and state workers’ compensation laws are subject to change, so be sure to do your research and speak with a trusted advisor.

Thanks for reading! Please note that this content is intended for educational purposes only. As laws change regularly, you should refer to your state legislation and/or an advisor for specific legal counsel. If you’re a small business owner, learn more about workers’ compensation insurance or check your current rate in 3 minutes.

Get a quote in 3 minutes

Save up to 30% on workers' compensation for your small business.