Navarro: Workers’ comp rates decrease for fifth straight year

(The Center Square) – Companies operating in Delaware will see a significant drop in worker’s compensation rates beginning next month, Insurance Commissioner Trinidad Navarra said.

Trinidad announced in a news release that beginning Dec. 1, worker’s compensation rates will decline by an average of 20.02% and residual market rates will drop by 20.01%, marking the fifth consecutive year for a decline in rates.

“We have worked hard to lower worker’s compensation costs year after year to help our local businesses and attract new ones to our state,” Navarro said. “I’m proud to say that companies are doing their part to reduce risks through programs like our Workplace Safety initiative as well.”

According to the release, the Delaware Compensation Rating Bureau and the Department of Insurance and the State’s Ratepayer Advocate discussed and agreed to lower rates. Actuaries for the three entities reviewed the DCRB’s filing and a public hearing was held as part of the approval process.

Worker’s compensation insurance provides coverage for an employee if they are hurt on the job, including medical coverage and payments of lost wages.

More than 1,100 employers in the state will also see additional savings through the Workplace Safety Program, according to the release, as the lower rates are helping employers save money in one of several ways. Businesses in the state saved $7 million last year, and a 19% discount can be achieved on insurance rates if businesses pass annual safety inspections and implement various recommendations.

According to the release, the cost savings will help employers amid the economic downturn associated with the COVID-19 pandemic, in addition to employees benefiting from employer safety goals through bonuses if they are made available.

The Workplace Safety Program will accept late applications as businesses may have been closed when notified about pending renewal dates. The online application is available at the Department of Insurance’s website and businesses can contact the department via email at [email protected].

Employers are encouraged to list current hours and point of contacts on the application, if they have been affected by the pandemic. A physical walk through of the businesses will be required in order for a business to receive safety discounts.

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