A Delaware workers comp exemption lets certain business owners legally go without workers’ compensation coverage on themselves — Coverage is required once an employer has 1 employee. Separately, owners may elect out as follows. Corporations: up to 8 executive officers who are also stockholders. LLCs: up to 8 members. In both cases the business and each excluded officer or member must agree in writing.
Sole proprietors and partners are not covered by default, so they have nothing to exempt; they may elect to be included under 19 Del. C. § 2306. For contractors and subcontractors, the corporate-officer exemption is limited to no more than 4 executive officers. — while the law still requires coverage for employees once a business has 1 or more.
This guide explains who qualifies for the Delaware workers comp exemption, the exact form, where to file it, what it costs, and what an exempt owner gives up. Verified against Delaware sources as of October 2026.
Delaware at a Glance
| Coverage required at | 1 employee(s) |
| Who may elect out | Coverage is required once an employer has 1 employee. Separately, owners may elect out as follows. Corporations: up to 8 executive officers who are also stockholders. LLCs: up to 8 members. In both cases the business and each excluded officer or member must agree in writing. Sole proprietors and partners are not covered by default, so they have nothing to exempt; they may elect to be included under 19 Del. C. § 2306. For contractors and subcontractors, the corporate-officer exemption is limited to no more than 4 executive officers. |
| Exemption form | DCRB Form DE-EXCL, “Executive Officers/LLC Exclusion Agreement,” also known as the “Exclusion of Executive Officers Endorsement.” Elections are recorded on Delaware Insurance Form C. To add coverage for sole proprietors or partners: “Inclusion of Sole Proprietors Endorsement – Delaware” / WC 00 03 10. |
| Filed with | The election is made on the workers’ comp policy. The signed exclusion agreement goes to the employer’s insurance carrier, which endorses the policy. The forms come from the Delaware Compensation Rating Bureau (https://dcrb.com/forms/). I found no separate state portal for filing an exemption. Delaware Department of Insurance guidance: https://insurance.delaware.gov/wp-content/uploads/sites/15/2016/11/formbull2.pdf |
| Filing fee | $0 (I found no state filing fee because nothing is filed with the state; the election goes through the insurer. Confirm with the carrier.) |
| Penalty for being uninsured | 19 Del. C. § 2374, three parts. (1) If the employer was previously insured: 3 times the premium for the coverage it did not buy, based on the last carrier’s rate for a 1-year period. (2) If the employer was never insured: 3 times the most expensive premium charged by any carrier in the state for a 1-year period. (3) If the employer keeps operating uninsured after notice from the Department of Labor: an additional 10 per employee per day, with a minimum of 250 per day. |
In This Delaware Guide:
Who Qualifies for A Delaware Workers Comp Exemption
Coverage is required once an employer has 1 employee. Separately, owners may elect out as follows. Corporations: up to 8 executive officers who are also stockholders. LLCs: up to 8 members. In both cases the business and each excluded officer or member must agree in writing. Sole proprietors and partners are not covered by default, so they have nothing to exempt; they may elect to be included under 19 Del.
C. § 2306. For contractors and subcontractors, the corporate-officer exemption is limited to no more than 4 executive officers.
19 Del. C. § 2308(a): Executive officers of covered employers are included in the Act. However, as many as 8 officers who are stockholders of a corporation may be exempted if the corporation and the exempted officers agree in writing. Only stockholder-officers may be excluded. For contractors and subcontractors, the stockholder-officer exemption is limited to no more than 4 executive officers.
19 Del. C. § 2308: As many as 8 LLC members may be exempted if the LLC and the exempted members agree in writing. Older DCRB procedures allowed only 4 LLC members; the current statute says 8. Sole proprietors and partners are not included in the Act but may elect coverage under § 2306, using the DCRB “Inclusion of Sole Proprietors Endorsement – Delaware” or WC 00 03 10.
How to File the Delaware Workers Comp Exemption
The form is DCRB Form DE-EXCL, “Executive Officers/LLC Exclusion Agreement,” also known as the “Exclusion of Executive Officers Endorsement.” Elections are recorded on Delaware Insurance Form C. To add coverage for sole proprietors or partners: “Inclusion of Sole Proprietors Endorsement – Delaware” / WC 00 03 10.. It is filed with The election is made on the workers’ comp policy.
The signed exclusion agreement goes to the employer’s insurance carrier, which endorses the policy. The forms come from the Delaware Compensation Rating Bureau (https://dcrb.com/forms/). I found no separate state portal for filing an exemption. Delaware Department of Insurance guidance: https://insurance.delaware.gov/wp-content/uploads/sites/15/2016/11/formbull2.pdf. The fee is $0 (I found no state filing fee because nothing is filed with the state; the election goes through the insurer. Confirm with the carrier.).
Filing on the state’s own site costs nothing beyond any statutory fee — the “exemption filing services” that advertise on this search charge for the same form.
Delaware Workers Comp Exemption Rules at a Glance
The exact Delaware workers comp exemption rules every owner should check before deciding to go without coverage:
| Employee threshold | 1 |
| Who may elect out | Coverage is required once an employer has 1 employee. Separately, owners may elect out as follows. Corporations: up to 8 executive officers who are also stockholders. LLCs: up to 8 members. In both cases the business and each excluded officer or member must agree in writing. Sole proprietors and partners are not covered by default, so they have nothing to exempt; they may elect to be included under 19 Del. C. § 2306. For contractors and subcontractors, the corporate-officer exemption is limited to no more than 4 executive officers. |
| Corporate officers | 19 Del. C. § 2308(a): Executive officers of covered employers are included in the Act. However, as many as 8 officers who are stockholders of a corporation may be exempted if the corporation and the exempted officers agree in writing. Only stockholder-officers may be excluded. For contractors and subcontractors, the stockholder-officer exemption is limited to no more than 4 executive officers. |
| LLC members and partners | 19 Del. C. § 2308: As many as 8 LLC members may be exempted if the LLC and the exempted members agree in writing. Older DCRB procedures allowed only 4 LLC members; the current statute says 8. Sole proprietors and partners are not included in the Act but may elect coverage under § 2306, using the DCRB “Inclusion of Sole Proprietors Endorsement – Delaware” or WC 00 03 10. |
| Form | DCRB Form DE-EXCL, “Executive Officers/LLC Exclusion Agreement,” also known as the “Exclusion of Executive Officers Endorsement.” Elections are recorded on Delaware Insurance Form C. To add coverage for sole proprietors or partners: “Inclusion of Sole Proprietors Endorsement – Delaware” / WC 00 03 10. |
| Where to file | The election is made on the workers’ comp policy. The signed exclusion agreement goes to the employer’s insurance carrier, which endorses the policy. The forms come from the Delaware Compensation Rating Bureau (https://dcrb.com/forms/). I found no separate state portal for filing an exemption. Delaware Department of Insurance guidance: https://insurance.delaware.gov/wp-content/uploads/sites/15/2016/11/formbull2.pdf |
| Fee | $0 (I found no state filing fee because nothing is filed with the state; the election goes through the insurer. Confirm with the carrier.) |
| Proof of exemption or coverage | Under 19 Del. C. § 2311, a contracting entity must get from each independent contractor or subcontractor, and keep for 3 years from the contract date, either a certificate of insurance or a notice of exemption of executive officers or LLC members. A general contractor that does not get valid proof may be liable for workers’ comp benefits for injured subcontractors and their employees. |
What A Delaware Workers Comp Exemption Gives Up
An exempt owner who is hurt on the job in Delaware has no workers’ comp claim: no medical coverage from the policy, no wage replacement and no disability award. Health insurance may exclude work injuries. Most owners who physically work the job keep themselves covered for that reason.
One honest paragraph on the “ghost policy”: a minimum-premium policy with no employees sold to owners who need a certificate of insurance. It is legal in many states, but it is not a Delaware workers comp exemption — it is coverage with nobody on it. If you add a worker, it must be reported, or the audit will find them.
Workers Exempt by Law in Delaware
Separate from the owner’s election, Delaware law exempts some classes of workers from coverage — commonly domestic workers below a threshold, casual labor, some farm labor and licensed real-estate agents paid by commission. A worker who does not fit a listed class counts toward the threshold, no matter what the 1099 says.
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Proving A Delaware Workers Comp Exemption or Coverage
Under 19 Del. C. § 2311, a contracting entity must get from each independent contractor or subcontractor, and keep for 3 years from the contract date, either a certificate of insurance or a notice of exemption of executive officers or LLC members. A general contractor that does not get valid proof may be liable for workers’ comp benefits for injured subcontractors and their employees.
Why the Delaware Workers Comp Exemption Matters
The Delaware workers comp exemption is a trade: lower cost today against no safety net if you are hurt. The second half of the trade is the one the search results never lead with. (1) Contractors may exempt no more than 4 stockholder-officers, compared with 8 for other corporations. (2) Contracting entities must keep subcontractors’ certificates or exemption notices for 3 years.
(3) In January 2026 the General Assembly overrode a veto to amend the Workplace Fraud Act. General contractors in construction are now jointly and severally liable for misclassification penalties caused by their subcontractors. Penalties can reach 20000, plus wage restitution, and repeat violators can be barred from public contracts for 3 years. A general contractor is not barred for a subcontractor’s violation.
(4) Senate Bill 145, signed June 30, 2025, did not change the § 2374 penalties. Confirm details with the Delaware Office of Workers’ Compensation and a licensed attorney. If the Delaware workers comp exemption rules above leave any doubt about whether a worker counts, ask the state agency before you decide — the answer is free, and the penalty for guessing wrong is not.
Employer side: the Delaware requirements guide covers the threshold, who counts and the penalties in full. Hurt while exempt? You may still have a claim against a third party — a licensed attorney can say.
Frequently Asked Questions
Who can file a workers comp exemption in Delaware?
Coverage is required once an employer has 1 employee. Separately, owners may elect out as follows. Corporations: up to 8 executive officers who are also stockholders. LLCs: up to 8 members. In both cases the business and each excluded officer or member must agree in writing. Sole proprietors and partners are not covered by default, so they have nothing to exempt; they may elect to be included under 19 Del.
C. § 2306. For contractors and subcontractors, the corporate-officer exemption is limited to no more than 4 executive officers.
What form is the Delaware workers comp exemption?
DCRB Form DE-EXCL, “Executive Officers/LLC Exclusion Agreement,” also known as the “Exclusion of Executive Officers Endorsement.” Elections are recorded on Delaware Insurance Form C. To add coverage for sole proprietors or partners: “Inclusion of Sole Proprietors Endorsement – Delaware” / WC 00 03 10.. File it on the state’s own site; filing services charge for the same form.
Can an exempt owner in Delaware still collect benefits if hurt?
No. An exemption removes the owner from coverage, so there is no claim for medical care or lost wages. That is the trade.
Official Delaware Sources & Resources
- Delaware Delaware Department of Labor, Division of Industrial Affairs, Office of Workers’ Compensation. Disputed claims go to the Industrial Accident Board.: https://industrialaffairs.delaware.gov/
- Delaware Workers’ Comp Statute: https://law.justia.com/codes/delaware/title-19/chapter-23/subchapter-i/section-2308/ (official code: https://delcode.delaware.gov/title19/title19.pdf)
- U.S. Department of Labor — Workers’ Comp: dol.gov
- Insurance Information Institute: iii.org
This Delaware workers comp exemption guide was last verified against official Delaware sources in October 2026. Rules change — confirm the current figure with the state agency or a licensed attorney.
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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.