Buying workers’ compensation for:


State Fund: No

Insurance Coverage Requirements: Workers’ Compensation is compulsory in Delaware, waivers are not permitted.

Who is Required to Purchase Workers’ Compensation Coverage?

All employers with one or more employees are required to provide workers’ compensation coverage for their workers. Employers may not charge an employee any portion of the premium or expense of carrying workers’ compensation insurance.


  • Any person employed as a household worker in a private home or household who earns less than $750 in cash in any 3 month period from a single private home or household and any person employed as a casual worker in a private home or household who earns less than $750 in cash in any 3 month period from a single private home or household.
  • Farm laborers or to their respective employers unless the employer elects to carry insurance to insure the payment of compensation to the employees or their dependents.
  • Licensed real estate salespersons or licensed associate real estate brokers who are affiliated with a licensed real estate broker under a written contract pursuant to which they are remunerated on a commission only basis and are designated as independent contractors and who qualify as independent contractors for federal tax purposes. The broker with whom they are contracted may elect to carry insurance to insure the payment of workers’ compensation to them or their dependents.

On May 23, 2007 Governor Minner signed Senate Substitute 1 for Senate Bill Number 68 that amended workers’ compensation insurance requirements for contractors, independent contractors’ partners and sole proprietors. Section 2308 extends the election of an exemption to four members of a limited liability corporation. Section 2311 clarifies the obligation that partners and sole proprietors must maintain workers’ compensation insurance in the construction industry. Four executive officers who are stockholders of a corporate entity or four members of a limited liability corporation may elect to be exempt from coverage provided the election is in writing. This requirement also applies to the construction industry as defined in 30DelC25. The effective date of the mandatory insurance coverage is July 17, 2007.

Factors that Impact Coverage

  • You are a sole proprietor or partner: In Delaware, you are excluded from coverage but have the option to include yourself.
  • You are an immediate family member of a sole proprietor or partner: You are included in coverage in Delaware but have the option to exclude yourself.
  • You are a corporate officer or member of an LLC: You are included in coverage but up to eight corporate officers who are stockholders of the corporation or as many as four members of a limited liability company may exclude themselves.

Failure to Secure Compensation

The penalty for not maintaining current workers’ compensation coverage as required by law is as follows:

If an employer, refuses or neglects to comply they will be subject to a civil penalty of $1 per day for each employee in the employer’s service at the time when the insurance became due, but not less than $25 for each day of refusal or neglect and until the same ceases. The employer will also be liable to the employer’s injured employees during continuance of the neglect or refusal, either for compensation or in an action at law for damages. In such action upon proof that the employer has not complied with this section, it will not be a defense that the employee was negligent; or that the employee had assumed the risk of the injury; or that the Injury was caused by the negligence of a fellow employee.

If any employer is in default for a period of 30 days, the employer may be enjoined by the Court of Chancery of this State from carrying on business while such default continues.

Proof of Coverage is Required

The notice must be posted in a conspicuous and accessible location in or about the premises or place of employment and where employees normally pass.

Independent Contractors

Mistakenly classifying an employee as an independent contractor can result in significant fines and penalties.

View 20 factors used by the IRS and our independent contractor questionnaire to determine whether you have enough control over a worker to be an employer.

Other Tips

If your insured employs workers in multiple states or your insured’s employees are temporarily working out-of-state, they need to purchase insurance for all the states where their workers are located, according to each state’s laws. Call 1-800-476-2948 and let us walk you through it.

The nature of your insured’s business, number of employees being covered and past coverage and claims are all factors in how much their premium will cost.