Workers’ compensation insurance rates will decrease for the fifth year in a row, effective December 1, 2021.
The voluntary market is seeing yet another double-digit decrease in voluntary market loss costs, with an average 20.02% reduction, and residual market rates will go down an average of 20.01%.
In a 2020 report, Delaware had the seventh-highest workers’ comp insurance rate among the 50 states. According to a report from the State of Oregon, that was an improvement from its No. 4 ranking in 2016. Oregon has one of the nation’s lowest workers comp insurance rates.
Delaware has enacted reforms to its worker’s comp insurance system to drive down costs, with the latest decline showing continued progress.
“We have worked hard to lower worker’s compensation costs year after year to help our local businesses and attract new ones to our state. I’m proud to say that companies are doing their part to reduce risks through programs like our Workplace Safety initiative as well,” said state Insurance Commissioner Trinidad Navarro.
Workers’ compensation insurance is an employer cost that 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 come to work due to their injury. Lower premiums do not change the amount of compensation an injured employee receives.
The Delaware Compensation Rating Bureau (DCRB) agreed to the lower rates after discussion with the Department of Insurance and the State’s Ratepayer Advocate. The approval process included a review of the filing by actuaries for each party and a public hearing. As a result, actual savings vary by policy.
More than 1,100 employers save more money on their workers’ compensation premiums by participating in the insurance department’s Workplace Safety Program. Last year’s total savings was approximately $7 million. Eligible businesses can earn up to a 19% discount on their insurance by successfully undergoing annual safety inspections and complying with associated recommendations.
Businesses eligible for the Workplace Safety Program are notified about the program each year seven months before their renewal date. Still, late applications are being accepted as many businesses were closed when they were notified of their eligibility due to COVID-19. Organizations interested in participating can access questionnaires online and contact safety@delaware.gov to begin the process.
Interested employers are asked to note their current hours and best point of contact on their questionnaires if these have been adjusted due to Covid-19 so inspectors can plan site visits. A physical walkthrough is still required for employers to earn a safety discount.
Only benefits can be gained by participating. Failure to qualify cannot be the basis for premium increases or sanctions imposed by other safety enforcement officials.
