Insurance Commissioner Trinidad Navarro recently announced that workers’ compensation insurance rates will decline for the fifth year in a row, effective December 1. percent reduction, and residual market rates will decline by an average of 20.01 percent.
“We have worked hard to reduce workers’ compensation costs year after year to help our local businesses and attract new ones to our state. I’m proud to say that companies are doing their part to reduce risk through programs like our Safe Work Initiative, ”said Navarro.
Workers’ compensation insurance is an employer cost that provides coverage when an employee is injured on the job. It can provide medical coverage, as well as payments for lost wages if a person cannot come to work because of their injury. Lower premiums do not affect the amount of compensation an injured employee receives.
The Delaware Compensation Rating Bureau (DCRB) accepted the lower rates after discussion with the Department of Insurance and the state Ratepayer Advocate. The approval process included a review of the DCRB file by the actuaries of each party and a public hearing. Actual savings vary by policy.
These lower rates are just one component of several efforts 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 ministry’s workplace safety program. Last year the total savings were about $ 7 million.
Qualifying businesses can receive up to 19% discount on their insurance by successfully submitting to annual safety inspections and complying with associated recommendations. These savings can help employers better weather the storm of the economic downturn due to COVID-19. It is important to note that individual employees can also directly benefit from employer-defined safety goals. For example, a workplace may offer bonuses if there is no injury for a period of time and thus pass the financial savings on to its employees.
Businesses eligible for the Safe Workplace Program are notified of the program every year seven months before their renewal date, but late applications are accepted as many businesses were closed when notified of their eligibility due to COVID- 19. Organizations interested in participating can access the questionnaires online and contact [email protected] to begin the process.
Interested employers are asked to note on their questionnaires their current schedules and their best point of contact if they have been adjusted due to COVID-19 so that inspectors can schedule site visits. A physical visit is still required for employers to get a safety discount. Only benefits can be obtained by participating, failure to qualify cannot be the basis for bonus increases or penalties imposed by other security enforcement officials.