Delaware Workers’ Compensation

USTAX BAY
Apr 28
2 min read

A Complete Guide for Employers

Written by US Tax Bay

At US Tax Bay, we simplify compliance for businesses across the U.S. If you're operating in Delaware, it’s critical to understand your workers' compensation responsibilities to stay compliant and protect your employees. Here’s everything you need to know about Delaware workers' compensation laws, exemptions, penalties, and insurance purchasing options.

Is Workers’ Compensation Required in Delaware?

Yes.

In Delaware, every business with one or more employees must carry workers’ compensation insurance, ensuring that workers are covered in the event of work-related injuries or illnesses.

Which Workers Can Be Excluded from Coverage?

Some categories of workers are exempt from mandatory coverage under Delaware law:

A spouse and minor children of a farm employer (unless listed in the insurance endorsement)
Sole proprietors
Low-earning agricultural and domestic workers
Real estate sales professionals
Government employees
Independent contractors
Part-time employees working 26 hours or less per week

Proper classification is critical to avoid noncompliance and potential fines.

How to Purchase Workers’ Compensation Insurance in Delaware

Employers can obtain workers' compensation insurance by purchasing:

Private insurance policies from authorized insurance carriers in Delaware

At US Tax Bay, we assist businesses in securing the right policy tailored to their specific industry needs.

Penalties for Not Having Workers’ Compensation Insurance

Delaware enforces strict penalties for businesses without proper coverage:

Fines of three times the amount you would have paid for one year of workers’ compensation insurance

Failure to maintain coverage can lead to severe financial penalties and potential legal consequences.

Death Benefits for Workers’ Families

In the case of a work-related fatality, eligible family members may receive:

Death benefits equal to up to 100% of the deceased worker’s average weekly wages if the worker was the sole provider
Death benefits payable for a minimum of five years and a maximum of 12 years
A lump-sum payment of $7,000 to assist with funeral expenses