Delaware workers' compensation insurance

Every state has different requirements for workers’ compensation insurance. Every business that has employees must have workers’ compensation insurance to operate in Delaware.

This requirement covers corporate officers, as well as full- and part-time employees. However, up to eight corporate officers can opt out of workers’ comp coverage at any one company.

Although the vast majority of Delaware employees must be covered by workers’ compensation insurance, some types of workers qualify for an exemption, including:

• Low-earning farm workers and domestic workers
• Some real estate sales professionals
• People with government jobs
• Independent contractors (except for those in construction)

In most cases, Delaware business owners do not have to be included in their company’s workers’ comp insurance plan. Sole proprietors, independent contractors and partners are not required to carry this coverage.

Even when it's not required, you should consider purchasing workers' compensation. Individual health insurance plans often deny work-related claims, which means you could end up paying medical bills out of pocket if you're injured on the job.

Additionally, here's what your workers' comp policy won't cover:

• Injuries caused by intoxication, drugs, or company policy violations
• Injuries claimed after a firing or layoff
• Wages for a replacement worker
• Occupational Safety and Health Administration (OSHA) fines

Insurance providers use a specific formula for calculating workers' comp premiums:

To save money on workers' comp insurance, it's important to make sure you classify your employees correctly. Employees with desk jobs or other jobs with a low risk of injury cost less to insure. This also helps you avoid misclassification fines.

In some cases, small business owners can choose to buy pay-as-you-go workers' compensation. This type of workers' comp policy has a low upfront premium, and lets you make payments based on your actual payroll instead of an estimated payroll. It's useful for businesses that hire seasonal help or have fluctuating numbers of employees.

A ghost policy is a cheap option in some states, though it's not permitted in Delaware. A ghost policy is a workers' comp policy in name only. It provides no protection or medical benefits, but can fulfill contractual requirements for a workers' comp certificate at a reduced price.

Finally, a documented safety program can help lower workers' comp costs. A safer workplace means fewer accidents, which helps keep your premium low.

Workers' compensation insurance covers costs when an employee is injured on the job or develops an occupational disease. It pays for medical treatment and also provides partial wage replacement while the employee is unable to work.

Policies usually include employer's liability insurance, which can help cover legal expenses if an employee blames their employer for an injury. However, the exclusive remedy provision in most workers' comp policies prohibits an employee from suing their employer if they accept workers' comp benefits.

The Delaware Department of Labor's Office of Workers’ Compensation regulates the workers' compensation system in the state. Injured workers must first notify their employer in writing and request medical services. The employer must submit a First Report of Occupational Injury or Disease within 10 days to the Office of Workers’ Compensation and their insurance carrier.

Workers' compensation provides claimants with:

• Medical benefits
• Temporary total disability benefits
• Temporary partial disability benefits
• Permanent impairment benefits
• Disfigurement benefits
• Death benefits

Explore the Delaware.gov Workers' Compensation Office's FAQs for more info.

If you fail to comply with Delaware workers' compensation laws, you may be fined an amount equal to the insurance premium you should have paid, times three, for one year.

Additionally, your business could be held liable for all medical costs and lost wages of an injured or ill employee.

If an employee dies as a result of a work-related injury or illness, death benefits can be awarded to the surviving spouse, children, and other dependents.

Under Delaware law, any person who was financially dependent on the deceased employee may file for workers’ compensation benefits. If the worker was totally responsible for supporting the dependent, the death benefit would equal two-thirds of the person’s average pay.

The death benefit can also increase depending on how many children are in home. If there are two children, it increases to 70% of wages, three children equates to 75% of wages, and up to a max of 80% if there are four or more children.

Death benefits are available to survivors for a minimum 400 weeks. Benefits may sometimes run longer in cases where a child was disabled before the worker died or when children are still in school (to age 18) or enrolled full-time in post-secondary accredited education (to age 25).

In cases where the beneficiary is someone other than a surviving spouse or child, benefits are limited to a fixed dollar amount, which is revised annually.

The estates of Delaware workers are eligible to receive $3,500 for funeral expenses. This is paid regardless of whether the deceased worker had dependents.

A workers’ compensation settlement is an agreement between the parties that will resolve a workers’ compensation claim. This benefits both the employee and the employer. A settlement in a workers’ compensation claim is a full and final resolution.

Settlements aren’t mandatory for employees. However, if the worker has reached maximum medical recovery or will not need additional treatment, they can agree to accept a lump sum in exchange for closing the claim. Every Delaware workers’ compensation settlement must go before the Delaware Office of Workers’ Compensation.

In the state of Delaware, the statute of limitations for filing an initial workers’ comp claim is two years in case of injury and one year from the time the employee learned that they had contracted an occupational disease. Employees are required to report workplace injuries within 10 days and then file a workers’ compensation claim within 90 days.

If you are ready to buy a workers' compensation policy, start a free application with Insureon to compare quotes from top-rated insurance carriers. A licensed insurance agent will help answer your questions and explain your coverage options. Once you find the right policy, you can usually begin coverage and get your certificate of insurance in less than 24 hours.