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Workers compensation insurance to be less expensive in Delaware next year

Delaware Public Media

The cost of Workers Compensation insurance in Delaware is going down for the second straight year.

Delaware’s Department of Insurance reports workers’ comp in the First State will cost an average of 10% less in the private insurance market than it did last year. The cost of workers’ comp in the residual market is also dropping. It’ll be %7.4 less expensive.

A 2014 bill sought to reduce Delaware’s medical costs to the workers’ compensation system by 33% over three years.

Senior Advisor to the Delaware Insurance Commissioner Vince Ryan credits that legislation for the drop in this year’s rates.

“Because of this fee schedule, the frequency of the claims are down, meaning we’re not seeing as many claims so workplace safety, we think, is up. And the severity of the claims—which is the amount of a loss that’s associated with an average insurance claim—so the cost per claim is also slightly down,” said Ryan.

He also notes this is a win for small businesses in Delaware.

“What we know is when businesses are looking for places to bring their companies, bring their innovations and where they’re looking to settle down in terms of their business, workers’ compensation rates are top of mind,” said Ryan.

The average rate for workers’ comp insurance in Delaware over the past ten years has been just under $7,700 per year in the residual market, and more than $14,000 per year in the voluntary market.

Ryan says that’s on the high end compared with other states.

The decrease is set to take effect December 1st.

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