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Loss costs fall 3.99% Dec. 1 for a 10th straight year after regulators and the ratepayer advocate reviewed a 1.40% filing; safety discounts of up to 12% are also being restored

DOVER, Del. — Delaware employers will get a larger workers’ compensation cost reduction than initially proposed when new rates take effect Dec. 1, extending a decade-long streak of decreases.

The Delaware Compensation Rating Bureau originally proposed a 1.40% average reduction in voluntary-market loss costs and a 1.53% reduction in residual-market rates.

After review by the Delaware Department of Insurance, an independent actuarial firm and the state’s Ratepayer Advocate, the approved filing instead reduces voluntary-market loss costs by an average of 3.99% and residual-market rates by 4.11%.

That makes the voluntary-market reduction about 2.85 times the decrease originally proposed.

Insurance Commissioner Trinidad Navarro approved the amended filing Oct. 12 for new and renewal policies effective Dec. 1. Insurance carriers must submit filings reflecting the new values by Dec. 11.

The rating bureau said the final numbers followed discussions and a settlement involving the bureau, the Department of Insurance and the Ratepayer Advocate, which retained a second independent actuary.

The bureau cautioned that the amended figures represent a “negotiated outcome” and do not necessarily mean all parties agreed on what the appropriate rate level should be.

“I am pleased to announce that for a decade, we have been able to approve rate decreases which help attract new companies and jobs to Delaware,” Navarro said in an Oct. 20 statement. “Delaware’s businesses used to pay some of the highest workers’ compensation premiums in the country.”

Actual savings will vary from employer to employer. Loss costs are the estimates of future claim costs that insurers use as a foundation for setting workers’ compensation prices. An employer’s final premium can also depend on factors including payroll, industry classification, claims history and the insurer’s pricing.

Lower insurance costs do not reduce benefits paid to workers injured on the job, according to the Department of Insurance.

Safety discount restored

Employers may eventually have another opportunity to reduce their workers’ compensation bills through changes to Delaware’s Workplace Safety Program.

The program provides premium credits to eligible employers that undergo safety inspections and address recommended improvements.

A 2024 law, Senate Bill 306, expanded eligibility, but changes associated with a new experience-rating plan unintentionally reduced the maximum Workplace Safety Program discount available to some businesses.

Senate Bill 248, enacted June 10, changes the formula used to calculate the workplace safety credit from 20% times one minus an employer’s credibility factor to 40% times one minus the credibility factor.

The change restores a maximum credit of 12%. Credit determinations using the new formula may be communicated beginning Dec. 1, 2026, and apply to workers’ compensation policies effective Aug. 1, 2027, or later.

“This legislation provides Delaware business owners the opportunity to save money by maintaining a good workplace safety program,” said state Rep. Ed Osienski, who co-sponsored the legislation with lead sponsor Sen. Nicole Poore.

“This legislation invests in safe workplaces, rewards responsible business practices, and strengthens our commitment to protect every Delaware worker,” Poore said.

As of the end of 2025, 853 Delaware employers had saved an estimated $3.6 million through the Workplace Safety Program, according to the Department of Insurance. Eligible businesses are notified seven months before renewal, and failing to qualify for the program cannot be used as a reason to increase an employer’s premium.

The department’s revised guidance also reminds insurers that carrier-run workplace inspection procedures must be recertified twice a year. The department said the reminder was prompted by instances in which carriers had not kept those procedures properly certified.

What it means for Delaware businesses

The larger-than-proposed rate reduction matters most to businesses with significant payrolls or jobs carrying higher workers’ compensation costs, including construction, manufacturing, retail, restaurants and other labor-intensive industries.

The 3.99% figure, however, should not be interpreted as a guaranteed 3.99% reduction in every employer’s final bill. Insurers begin with DCRB loss costs and then apply their own approved pricing factors along with the employer’s classification, payroll and claims experience.

The Workplace Safety Program creates a separate potential savings opportunity for employers willing to undergo inspections and maintain qualifying safety practices.

The Dec. 1 workers’ compensation decrease is Delaware’s 10th consecutive annual reduction. Last year, the state approved an 11.6% average reduction in voluntary-market loss costs.

Delaware Public Media reported Nov. 4 on the 3.99% and 4.11% reductions and the expansion of workplace safety discounts. DCRB’s filing documents provide additional context showing that the voluntary-market decrease initially proposed was 1.40% before the regulatory and actuarial review produced the larger reduction.

To Go Box

• What: Delaware workers’ compensation rate changes and Workplace Safety Program
• Workers’ comp rates: Average voluntary-market loss costs decrease 3.99%; residual-market rates decrease 4.11%.
• Effective: New and renewal policies beginning Dec. 1, 2026.
• Workplace safety credit: Eligible employers can qualify for discounts of up to 12% under the revised formula.
• New safety formula: Credit determinations may be communicated beginning Dec. 1, 2026, for policies effective Aug. 1, 2027, or later.
• Learn more: Delaware Department of Insurance Workplace Safety Program.
• Questions: [email protected] or 302-674-7377.

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