Workers Compensation
In Delaware, the Workers Compensation Law is administered by Office of Workers' Compensation within the Department of Labor. This law provides prompt and reasonable income and medical benefits to work accident victims or income benefits to their dependents by mutual agreement or board decision. The law also serves to relieve employers of liability from common lawsuits involving negligence.
All employers must provide Workers' Compensation coverage for their employees through an outside insurer or, with the approval of the Department of Labor, through self-insurance. The Delaware Compensation Rating Bureau establishes rates, with final approval required from the State Insurance Commissioner.
Examples of the rates for outside insurers that apply to a sample of risk classes are given below. A company with employees in more than one risk class must pay the assessed rate on each class of employee. Rates for other classes are available from the Delaware Economic Development Office.
|
|
|
|
|
Clerical |
$0.54 |
$ 315 |
|
Instrument Manufacturer |
1.87 |
545 |
|
Drug Manufacturer |
1.85 |
545 |
|
Machine Shop |
7.95 |
1,610 |
|
Fuel Distribution |
7.25 |
1,490 |
|
Hardware Manufacturer |
7.61 |
1,550 |
|
Masonry |
12.17 |
2,190 |
|
Sheet Metal Work (Shop) |
11.47 |
2,225 |
|
Steel Foundry |
14.62 |
2,780 |
|
Source: Delaware Compensation Rating Bureau, Delaware Manual of Rules, Classifications and Rates for Workers' Compensation and for Employer's Liability Insurance, revised Feb, 2002. |
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If an employer elects to self-insure, the State taxes the employer 4% of the premium that would have been paid to an outside insurance firm.
For the past few years, Delaware's Workers' Compensation benefits have been moderate when compared with the region.
