Delaware sees another double-digit drop in workers' comp rates
Workers compensation insurance rates in the First State decrease for a fourth year in a row.
The Delaware Compensation Rating Bureau approved the rate decrease 11.56%.
It’s effective December 1, and will save businesses money as they cope with the pandemic that’s already drained many of them of revenue.
Insurance Commissioner Trinidad Navarro says that’s good news for businesses facing considerable revenue losses during COVID-19 pandemic.
"Because of the losses that companies have taken because they had to shut down, because they had to furlough or layoff employees and people just haven't been out and about, all rightfully so because we're all trying to do our part to stop the spread," said Navarro "But it has a profound consequence on businesses and small businesses are especially struggling."
Savings will vary by policy, but last year’s decrease saved businesses more than $4 million in premiums, according to the state Insurance Department.
"It helps employers with the cost of providing the coverage, which will put more money in their pocket which will allow them to perhaps pay their employees a little bit more," said Navarro. "And this really is a big deal following last year when we had double digit decreases and now this year with double digit decreases."
The lower rates can be supplemented by the state’s Workplace Safety Program. That allows eligible businesses to earn up to a 19% discount on their insurance by demonstrating they provide and maintain a safe place to work.
1,100 employers participate in that program, which the Insurance Department says created $7.6 million in savings on workers comp premiums last year.