Delaware workers’ compensation insurance rates will decrease for the fourth year in a row, effective December 1, 2020.
This comes as the voluntary market is seeing yet another double-digit decrease in loss costs, with an average 11.56% reduction, and residual market rates will go down an average of 8.8%, according to a Delaware Department of Insurance press release.
“For four consecutive years we have been able to decrease workers’ compensation costs for businesses of all sizes,” Delaware Insurance Commissioner Trinidad Navarro said in the release. “This year’s reduction will help decrease business expenses as we continue to experience the economic effects of the COVID-19 pandemic. These lower costs can attract new companies to our state and increase employment opportunities as many organizations look to move out of major metropolitan areas.”
The Delaware Compensation Rating Bureau (DCRB) approved the lower rates after discussion with the Department of Insurance and the State’s Ratepayer Advocate. The approval process includes a review by actuaries for the parties, as well as a public hearing. It is important to note that actual savings may differ and will vary by policy. Last year’s decreases saved businesses more than $4 million in premiums.
These lower rates are just one component of several efforts shepherded by the department to help businesses financially. More than 1,100 employers are saving even more money on their workers’ compensation premiums by participating in the department’s Workplace Safety Program. Last year’s savings were approximately $7.6 million. Eligible businesses can earn up to a 19% discount on their insurance by providing and maintaining a safe place to work.
“Now more than ever, increasing workplace safety and decreasing business overhead is so important,” Navarro added in the release. “Our inspectors are working extremely hard to negotiate challenges caused by COVID-19 and are doing an impressive job completing safety audits during these extraordinarily unusual circumstances. I want to commend them and our entire Workplace Safety team for their incredible work.”
Eligible businesses are notified about the program each year seven months prior to their renewal date, but late applications are being accepted as many businesses were closed when they were notified of their eligibility.
Source: Delaware Department of Insurance
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