DELAWARE -Delaware businesses will see another reduction in workers' compensation insurance rates in 2026, marking the 10th consecutive year of decreases, Insurance Commissioner Trinidad Navarro announced.
The new rates, which take effect Dec. 1, include an average 3.99 percent decrease in loss costs for the voluntary insurance market and an average 4.11 percent rate reduction for the residual market. Actual savings will vary depending on individual insurance policies.
The reductions follow a review of the Delaware Compensation Rating Bureau's filing by independent actuaries and a public hearing involving the bureau and the state's Ratepayer Advocate.
“I am pleased to announce that for a decade, we have been able to approve rate decreases which help attract new companies and jobs to Delaware,” Navarro said. “Delaware’s businesses used to pay some of the highest workers’ compensation premiums in the country. Thankfully, our employers continue to do their part by reducing risk, protecting employees, and creating safe and productive work environments.”
The rate reductions come as Delaware moves forward with Senate Bill 248, legislation designed to help businesses maximize savings through the state's Workplace Safety Program.
The legislation addresses previous changes that unintentionally reduced available discounts after the Delaware Compensation Rating Bureau introduced a new Experience Rating Plan.
Under the updated law, eligible businesses can qualify for workers' compensation insurance premium discounts of up to 12 percent by maintaining safe workplaces and meeting program requirements.
Rep. Ed Osienski (D -District 24), who supported the bipartisan legislation alongside Sen. Nicole Poore (D -District 12), said the changes will reward businesses that prioritize employee safety.
"I was happy to join Senator Poore on this bipartisan legislation, brought to us by the Delaware Department of Insurance,” Osienski said. “This legislation provides Delaware business owners the opportunity to save money by maintaining a good workplace safety program. By maintaining a safe workplace, a business will increase the workers' compensation insurance credit they can access. This Act ensures that companies can reach maximum premium savings of 12 percent, while working toward an accident-free workplace."
Poore, the bill's lead sponsor, emphasized the importance of protecting employees while reducing costs for employers.
“Every Delaware worker deserves a safe and healthy workplace, and businesses that prioritize employee safety should be recognized for their efforts. Thanks to the advocacy of the Delaware Department of Insurance, Senate Bill 248 will encourage businesses to maintain a safe workplace and access workers compensation premium savings of up to 12%,” Poore said. “This legislation invests in safe workplaces, rewards responsible business practices, and strengthens our commitment to protect every Delaware worker.”
The Delaware Department of Insurance reported that 853 employers saved an estimated $3.6 million through the Workplace Safety Program as of the end of 2025.
Businesses can qualify for premium discounts by completing annual workplace safety inspections and making recommended improvements.
Eligible employers receive notifications seven months before their insurance policies are scheduled for renewal, allowing them time to complete the necessary steps.
The program also protects participating businesses from penalties if they do not qualify for a discount. Failing to meet program requirements cannot be used as a reason to increase insurance premiums or impose safety-related sanctions.
Workers' compensation insurance provides financial protection for employees who get hurt on the job.
Coverage may include medical expenses and replacement wages when an employee is unable to work because of a job-related injury.
Although the newly approved rate reductions will lower insurance costs for many Delaware employers, they will not affect the compensation benefits employees are entitled to receive.
The Department of Insurance said the continued decreases reflect efforts by Delaware businesses to improve workplace safety and reduce risks.
