Workers’ compensation insurance rates decrease for the 7th year in a row.
“Back in 2016 workers compensation insurance premiums were higher in Delaware than almost every other state in the country. And the Markell administration had seen this as a significant challenge for business owners here in Delaware. In fact, some were moving to our surrounding states because these premiums for workers’ comp were so high,” explained Delaware Insurance Commissioner Trinidad Navarro.
A task force and a fee schedule created in 2016 helped solve that issue.
Those efforts, along with ongoing work by the Department of Insurance and the state’s Ratepayer Advocate, have pushed rates down for seven consecutive years.
This year, the residual market rates are dropping by an average of 13.85%, and the voluntary markets are falling by 10.03%.
The residual market is generally ‘last resort’ coverage for companies unable to obtain voluntary market coverage due to cost, high risk, or their claims history.
The large residual market decrease shows more companies are using the voluntary market, indicating affordability and employee safety has improved statewide.
Navarro says that improvement was helped by his department's Workplace Safety Program, which drives rates down by improving safety conditions. But he notes they’re having trouble getting more businesses to participate.
“Right now more than 1,100 employers are saving in our Workplace Safety Program. Meaning that there’s a large number, probably 90% of eligible employers or companies, are not participating in the program. Companies can save up to 19% off of their workers comp premiums by just participating and undergoing an annual safety inspection, and complying with the recommendations.”
Navarro adds workers also benefit from safer environments, and, in some cases, can earn bonuses if there are no workplace injuries during a certain time period.
More information on the program can be found on insurance.delaware.gov.
