Delaware workers comp requirements decide exactly when an employer must carry coverage, who counts toward the threshold, and the penalty for going without. This guide breaks down the Delaware workers comp requirements in plain English. (Injured instead of hiring? See our Delaware settlement and claim guides linked below.) All figures are from Delaware sources, verified as of June 2026.
Delaware at a Glance
| Required at | 1 employee(s) |
| Which workers count | Coverage is triggered by the first employee, and all workers count — full-time, part-time, and seasonal alike (hours worked do not matter). There is no higher threshold for any industry; in construction, contractors/subcontractors are deemed employers and independent contractors must either carry their own coverage or be insured by the contracting entity, so coverage is effectively required from the first worker. |
| Who is exempt | Sole proprietors and partners are not included in the Act (they may elect coverage); agricultural/farm laborers are exempt (employer may cover voluntarily); household/domestic workers in a private home who earn less than 750 in cash in any 3-month period from a single household are exempt; genuine independent contractors are not covered unless the relationship functions like employment. |
| Penalty for going without | Civil penalty equal to 3 times the premium that should have been paid (based on the last rate charged, or for never-insured employers the most expensive comparable policy then available in the state, for a 1-year period); if the employer remains uninsured after Department of Labor notice, an additional 10 per employee per day with a minimum of 250 per day for each day uninsured; after roughly 30 days of default the business can be ordered to stop operating and the Department may seek an injunction; insurers/others violating the insurance provisions face fines of 100 to 1000. |
| Monopolistic state? | No — private carriers |
In This Delaware Guide:
Is Workers’ Comp Required in Delaware?
Yes — workers’ compensation is required of nearly every Delaware employer the moment it hires its first employee, with no minimum-employee grace period.
Delaware Workers’ Comp Requirements at a Glance
Here are the exact Delaware workers comp requirements every employer should know:
| Employees that trigger the mandate | 1 |
| Which workers count | Coverage is triggered by the first employee, and all workers count — full-time, part-time, and seasonal alike (hours worked do not matter). There is no higher threshold for any industry; in construction, contractors/subcontractors are deemed employers and independent contractors must either carry their own coverage or be insured by the contracting entity, so coverage is effectively required from the first worker. |
| Who is exempt | Sole proprietors and partners are not included in the Act (they may elect coverage); agricultural/farm laborers are exempt (employer may cover voluntarily); household/domestic workers in a private home who earn less than 750 in cash in any 3-month period from a single household are exempt; genuine independent contractors are not covered unless the relationship functions like employment. |
| Owners & officers | Yes — up to 8 corporate officers who are stockholders of a corporation, and up to 8 LLC members, may exclude themselves if the entity and the officers/members agree in writing to the exemption (a notice of exemption). Sole proprietors and partners are outside the Act by default but may elect to be covered. |
| Penalty for going without | Civil penalty equal to 3 times the premium that should have been paid (based on the last rate charged, or for never-insured employers the most expensive comparable policy then available in the state, for a 1-year period); if the employer remains uninsured after Department of Labor notice, an additional 10 per employee per day with a minimum of 250 per day for each day uninsured; after roughly 30 days of default the business can be ordered to stop operating and the Department may seek an injunction; insurers/others violating the insurance provisions face fines of 100 to 1000. |
| Monopolistic state? | No — buy from private carriers |
| State fund | NONE — Delaware has no state workers’ compensation fund. |
How to Get Workers’ Comp Coverage in Delaware
A Delaware employer buys coverage from a private insurer licensed in the state; if declined by two licensed carriers, it can obtain coverage through the assigned-risk residual market, the Delaware Workers Compensation Insurance Plan (DIP), administered by the Delaware Compensation Rating Bureau (DCRB). Qualified employers may also self-insure with state approval.
Private market: YES
What Workers’ Comp Covers in Delaware
Workers’ compensation is a no-fault system: an injured employee gets benefits without having to prove the employer did anything wrong, and in exchange gives up the right to sue for most workplace injuries. A typical Delaware policy pays for medical treatment tied to a work injury, part of the wages lost while the worker recovers, longer-term disability benefits if the injury is permanent, and death benefits to a family.
It also includes employers-liability coverage, which protects the business if an injury still leads to a lawsuit.
Employees vs. Independent Contractors in Delaware
The most common way employers get the Delaware workers comp requirements wrong is by assuming a worker is an “independent contractor” who does not count. State agencies look at how the work is actually controlled, not the label on a 1099. If Delaware decides a contractor was really an employee, the business can owe back premiums and penalties as if coverage should have been in place all along.
When you are close to the employee threshold, confirm each worker’s status with your state board before you decide you are exempt.
Other Delaware workers’-comp rules: Delaware uses the DCRB (not NCCI) as its rating bureau and residual-market administrator. Construction/contracting entities must obtain and retain for 3 years either a notice of exemption (executive officers/LLC members) or a certificate of insurance from each independent contractor or subcontractor; if they fail to do so, the contracting entity is deemed to insure any workers’ comp claims of that contractor and its employees.
Out-of-state construction businesses must verify Delaware compliance.
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Understanding Delaware Workers Comp Requirements
The Delaware workers comp requirements exist so injured employees get care and lost wages without having to sue. For most employers, the Delaware workers comp requirements come down to one number: the employee count that triggers the mandate, shown in the table above. Once you hit that count, Delaware workers comp requirements apply whether you planned for them or not, and the penalty for going without is real.
If any part of the Delaware workers comp requirements is unclear, your state board can confirm the threshold, the exemptions, and how to get covered.
Need to get covered? If you are an employer in Delaware shopping for a policy, our sister site compares small-business insurance, including workers’ comp. Compare business insurance options →
Frequently Asked Questions
Is workers’ comp required in Delaware?
Yes — workers’ compensation is required of nearly every Delaware employer the moment it hires its first employee, with no minimum-employee grace period.
What is the penalty for not having workers’ comp in Delaware?
Civil penalty equal to 3 times the premium that should have been paid (based on the last rate charged, or for never-insured employers the most expensive comparable policy then available in the state, for a 1-year period); if the employer remains uninsured after Department of Labor notice, an additional 10 per employee per day with a minimum of 250 per day for each day uninsured;
after roughly 30 days of default the business can be ordered to stop operating and the Department may seek an injunction; insurers/others violating the insurance provisions face fines of 100 to 1000.
Who is exempt from Delaware workers’ comp?
Sole proprietors and partners are not included in the Act (they may elect coverage); agricultural/farm laborers are exempt (employer may cover voluntarily); household/domestic workers in a private home who earn less than 750 in cash in any 3-month period from a single household are exempt; genuine independent contractors are not covered unless the relationship functions like employment.
Official Delaware Sources & Resources
- Delaware Delaware Department of Labor, Division of Industrial Affairs, Office of Workers’ Compensation: https://labor.delaware.gov/divisions/industrial-affairs/workers-comp/
- Delaware Workers’ Comp Statute: https://delcode.delaware.gov/title19/c023/index.html
- U.S. Department of Labor — Workers’ Comp: dol.gov
- Insurance Information Institute: iii.org
These Delaware workers comp requirements were last verified against official sources in June 2026. Rules and penalties change — confirm the current figure with your state workers’-comp board or a licensed agent.
More Delaware Workers’ Comp Guides
- Delaware Workers’ Comp Settlements
- How to File a Delaware Workers’ Comp Claim
- Workers’ Comp Guides for All 50 States
Disclaimer: This guide is informational only and is not legal, medical, or financial advice. Workers Comp Explained is an independent educational resource, not a law firm or insurer. Workers’ comp benefits, settlement values, deadlines, and requirements vary by state and by the specific facts of your injury and change over time, and any settlement figures here are illustrative only.
Confirm your rights and any deadline with your state’s workers’ compensation board and a licensed attorney before you act.