Do I need workers compensation insurance?

Workers Compensation Insurance Requirements in Delaware

When starting a business in Delaware, understanding your obligations for workers compensation insurance is essential for operational compliance and employee protection.

Who Must Carry Workers Compensation Insurance?

In Delaware, most employers with one or more employees are required to carry workers compensation insurance. This includes full-time, part-time, and seasonal workers.

• Construction businesses: Must have workers compensation insurance regardless of the number of employees.
• Other industries: Required to carry coverage if they have at least one employee.
• Exemptions: Sole proprietors or partners with no employees are generally exempt but should verify their specific situation.

Operational Considerations

• Insurance procurement: Obtain coverage through a private insurer or the Delaware Workers’ Compensation Insurance Plan.
• Employee classification: Properly classify employees to ensure accurate premium calculations and compliance.
• Recordkeeping: Maintain detailed injury and claims records as required by Delaware regulations to support reporting and audits.
• Reporting requirements: Report workplace injuries promptly to your insurer and the Delaware Department of Labor.

As of 2026

Delaware continues to enforce mandatory workers compensation insurance for most employers. Staying current with premium payments and policy renewals is critical to avoid penalties and operational disruptions.