New rates will be effective December 1

UPDATE: Following a review of the Delaware Compensation Rating Bureau (DCRB) filing by independent actuaries and a public hearing with DCRB and the State’s Ratepayer Advocate, the final Workers’ Comp rates have been approved. Commissioner Navarro is proud to announce that additional decreases have been negotiated from the initial filing:
Residual Market: Average decrease of 13.85%
Voluntary Market: Average decrease of 10.03%

Insurance Commissioner Trinidad Navarro announced today that workers’ compensation insurance rates will decrease for the seventh year in a row, effective December 1, 2023.

“From the start of my administration to today, Delaware’s local businesses have never seen a worker’s compensation rate increase. We started with some of the highest costs in the country, and endured a pandemic, yet our reforms are still proving themselves to be effective. Most importantly, businesses are doing their part by committing to reducing risk through employee protections and creating safe work environments,” said Insurance Commissioner Trinidad Navarro. “I’m proud to announce yet another decrease, Delaware businesses deserve it.”

This year’s decrease in worker’s compensation insurance rates continues the reversal of voluntary and residual market trends. With the residual market expected to see a greater rate decrease, it shows that companies who previously could only obtain coverage in this ‘last resort’ market, due to cost, high risk, or claims history, can now obtain traditional voluntary market coverage. This is the second year of this trend, which indicates substantial improvement in coverage affordability and employee safety.

Workers’ compensation insurance provides coverage when an employee is hurt on the job and can provide medical coverage as well as payments for lost wages if a person is unable to work due to their injury. Lower premiums don’t change the amount of compensation an injured employee receives.

Final rates are expected to be announced later this fall, following a confirmation of the Delaware Compensation Rating Bureau (DCRB) filing by independent actuaries, and a public hearing with DCRB and the State’s Ratepayer Advocate. Actual savings will vary by policy.

These lower rates are just one component of several department efforts to help businesses. More than 1,100 employers are saving even more on their premiums by participating in the department’s Workplace Safety Program, saving approximately $6.9 million last year. Eligible businesses can earn up to a 19% discount on their insurance by successfully undergoing annual safety inspections and complying with recommendations. Importantly, employees may also benefit directly from employer-based safety goals – for example, a workplace may offer bonuses if there are no injuries in a given timeframe and pass on the savings to workers.

Businesses eligible for the Workplace Safety Program are notified each year seven months prior to their renewal date. Organizations interested in participating can access questionnaires online and contact safety@delaware.gov to begin the process. The department has updated the Inspection Fee Schedule for program participants, as indicated on the questionnaire. Workplace Safety Program inspectors are independent safety professionals contracted by the department, not state employees or OSHA. Only benefits can be gained by participating; failure to qualify cannot be the basis for premium increases or sanctions imposed by other safety officials.

View the DCRB website

Double-digit drop will be effective December 1

Insurance Commissioner Trinidad Navarro announced today that workers’ compensation insurance rates will decrease for the sixth year in a row, effective December 1, 2022. Both the voluntary market and the residual market will see rate decreases in the double digits.

“Lowering worker’s compensations costs time and time again helps our local businesses, who have faced several years of uncertainty and economic difficulty due to the pandemic,” said Insurance Commissioner Trinidad Navarro. “It also helps us to attract new companies and jobs to our state. While costs continue to decrease, companies are keeping their eye on the ball by reducing risk through programs like our Workplace Safety initiative.”

This year’s decrease in worker’s compensation insurance rates is expected to be coupled with the reversal of voluntary and residual market trends – the residual market is expected to see a greater rate decrease. Residual insurers provide ‘last resort’ coverage for companies unable to obtain or afford coverage in the traditional market. Generally, rates in the residual market do not decrease more than the voluntary market, as the clientele tends to be businesses with higher risk or claims history. The reduction seen in the residual market is an indicator that these policies are being used less frequently, as companies can better afford the traditional, voluntary market.

Workers’ compensation insurance provides coverage when an employee is hurt on the job and can provide medical coverage as well as payments for lost wages if a person is unable to work due to their injury. Lower premiums don’t change the amount of compensation an injured employee receives.

Final rates are expected to be announced in early November, following a review of the Delaware Compensation Rating Bureau (DCRB) filing by independent actuaries, and a public hearing with DCRB and the State’s Ratepayer Advocate. Actual savings will vary by policy.

These lower rates are just one component of several Department efforts to help businesses financially. More than 1,200 employers are saving even more money on their workers’ compensation premiums by participating in the department’s Workplace Safety Program, saving approximately $7.4 million last year. Eligible businesses can earn up to a 19% discount on their insurance by successfully undergoing annual safety inspections and complying with recommendations. Importantly, employees may also benefit directly from employer-based safety goals – for example, a workplace may offer bonuses if there are no injuries in a given timeframe and pass on the savings to workers.

Businesses eligible for the Workplace Safety Program are notified each year seven months prior to their renewal date. Organizations interested in participating can access questionnaires online and contact safety@delaware.gov to begin the process. For the first time in 20 years, the Department will update the Inspection Fee Schedule for program participants. Businesses will be notified accordingly. Only benefits can be gained by participating, failure to qualify cannot be the basis for premium increases or sanctions imposed by other safety officials.

Update as of November 2, 2022: Following a review of the Delaware Compensation Rating Bureau (DCRB) filing by independent actuaries and a public hearing with DCRB and the State’s Ratepayer Advocate, the final Workers’ Comp rates have been approved.
Residual Market: Average decrease of 19.72%
Voluntary Market: Average decrease of 14.76%

View the DCRB website

Decrease and Workplace Safety Program save businesses money during unprecedented time

Insurance Commissioner Trinidad Navarro announced today that workers’ compensation insurance rates will decrease for the fourth year in a row, effective December 1, 2020. The voluntary market is seeing yet another double-digit decrease in loss costs, with an average 11.56% reduction, and residual market rates will go down an average of 8.8%.

“For four consecutive years we have been able to decrease workers’ compensation costs for businesses of all sizes. This year’s reduction will help decrease business expenses as we continue to experience the economic effects of the COVID-19 pandemic,” said Commissioner Navarro. “These lower costs can attract new companies to our state and increase employment opportunities as many organizations look to move out of major metropolitan areas.”

The Delaware Compensation Rating Bureau (DCRB) approved the lower rates after discussion with the Department of Insurance and the State’s Ratepayer Advocate. The approval process includes a review by actuaries for the parties, as well as a public hearing. It is important to note that actual savings may differ and will vary by policy. Last year’s decreases saved businesses more than $4 million in premiums.

These lower rates are just one component of several efforts shepherded by the Department to help businesses financially. More than 1,100 employers are saving even more money on their workers’ compensation premiums by participating in the department’s Workplace Safety Program. Last year’s savings was approximately $7.6 million. Eligible businesses can earn up to a 19% discount on their insurance by providing and maintaining a safe place to work.

“Now more than ever, increasing workplace safety and decreasing business overhead is so important,” said Commissioner Navarro. “Our inspectors are working extremely hard to negotiate challenges caused by COVID-19 and are doing an impressive job completing safety audits during these extraordinarily unusual circumstances. I want to commend them and our entire Workplace Safety team for their incredible work.”

Eligible businesses are notified about the program each year seven months prior to their renewal date, but late applications are being accepted as many businesses were closed when they were notified of their eligibility. Organizations interested in participating can access questionnaires online and contact safety@delaware.gov to begin the process.

Interested employers are urged to note on their questionnaires their current hours and best point of contact 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.

View the DCRB website

Businesses urged to revisit insurance needs, encourage workplace safety

The Delaware Department of Insurance is sharing reminders with businessowners regarding important measures to take as phased reopenings begin and providing resources that can help companies enhance worker and customer safety throughout the reopening process.

Insurance Commissioner Trinidad Navarro recommends that businesses revisit their insurance plans in order to verify that they remain active and account for any changes that occurred due to COVID-19 related closures and economic impacts, stating “Businesses have gone through a lot of transition during COVID-19, and their insurance circumstances may have changed as well.” Companies should contact their insurer if they have policy questions or concerns.

Governor John Carney’s reopening plan provides a phased approach to economic rehabilitation, with Phase 1 of business openings beginning on June 1. During Phase 1, enumerated establishments including restaurants, retail establishments, and malls may open with a maximum capacity of 30%, requires face coverings, and strict social distancing guidelines. Industry-specific requirements are included in the reopening plan.

“As businesses bring employees back to work and start interacting with members of the public, there are many aspects of COVID-19 prevention that management should take into account to ensure the safety of all involved,” said Commissioner Navarro.

Last week, the Delaware Division of Small Business, in association with the Division of Public Health, announced COVID-19 Consumer Protection Standards. This voluntary self-reporting program offers a checklist of safety precautions and a public-facing window cling for participants. It is important to note that this program is not related to the Delaware Department of Insurance Workplace Safety Program. Participants in the COVID-19 Consumer Protection Standards will not receive the workers’ compensation insurance discounts that are available in the Department of Insurance Workplace Safety Program.

Additional guidance for businesses is available on the Department of Labor Occupational Safety and Health Administration COVID-19 website, including industry-specific information for retail businesses, restaurants, transportation companies, construction, manufacturing, healthcare, and more, as well as content in multiple languages.

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Workplace Safety Program saves $7.6 million for participants

The Delaware Department of Insurance has analyzed new filings from the state’s top writers of workers’ compensation insurance after announcing the third consecutive year of decreased rates in November. The top writers represent nearly 10,000 companies that hold policies within the state. Policyholders of these companies will see a total premium impact of more than $3.7 million, and when the entire writer universe is included, the Department expects realized savings of more than $4 million.

“Delaware businesses large and small are seeing decreased premiums from the third consecutive year of workers’ compensation rate decreases, and that benefits everyone,” said Commissioner Trinidad Navarro. “We will continue to work to make sure that Delaware has an inviting atmosphere for businesses and safe environments for employees.”

Technology Insurance Company, Inc.’s filing shows that their reduction will save policyholders a total of $845,594. Wesco Insurance Company’s total premium change of $651,721 takes the second-place spot for savings, while eight other top insurers are reporting six-digit premium impacts. Of the state’s top writers, American Zurich Insurance Company filed with the largest overall percentage rate impact, a decrease of 17.50%, with five other companies posting double-digit drops.

While realized savings will vary business to business, more discounts can be accessed through the Workplace Safety Program offered by the department. In 2019, 1,119 companies participated in the program, saving a combined $7.6 million through safety credits on their $72.9 million employer premium total – a savings of more than 10%. Businesses can earn discounts of up to 19% by providing and maintaining a safe place to work. More information on this program is available at insurance.delaware.gov/services/workplacesafety.

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