Delaware Business Insurance Guide 2026

Who must carry it: 1 or more employees (Delaware Division of Industrial Affairs: Which employers are legally required to carry Workers' Compensation insurance in Delaware?).

In Delaware, almost every employer with one or more employees is required to carry Workers' Compensation insurance, with only limited exceptions in state law.

Source: Delaware Division of Industrial Affairs: Which employers are legally required to carry Workers' Compensation insurance in Delaware?

Exemptions and exclusions

Delaware law excludes household or casual workers in a private home who earn less than $750 in cash in any three-month period from one household, and farm laborers unless the employer carries insurance for them. Up to eight stockholder officers or LLC members may be exempted by written agreement (19 Del. C. §§ 2306 to 2308) (Delaware Code, Title 19, Chapter 23).

The agency to ask is the Delaware Department of Labor, Division of Industrial Affairs, Office of Workers' Compensation. To check a proposal's payroll arithmetic, use the workers' comp calculator; the workers' compensation guide explains what the coverage pays for.

The minimum auto liability coverage in Delaware:

• Bodily injury liability: $25,000 per person and $50,000 per accident
• Property damage liability: $10,000 per accident
• Start date: not stated in the source; confirmed in force on October 3, 2026
• Source: Delaware Division of Motor Vehicles, Insurance Requirements

The Division of Motor Vehicles also requires personal injury protection (PIP) of at least $15,000 for any one person and $30,000 for all persons injured in one accident on vehicles registered in Delaware (Delaware Division of Motor Vehicles, Insurance Requirements). Ask your insurer whether these also apply to your commercial and fleet policies.

Commercial and for-hire vehicles can face different or higher federal or state requirements, and leases, lenders and clients can ask for more; see our commercial auto guide.

Delaware Paid Leave is a state paid family and medical leave insurance program. Contributions began January 1, 2025, and the program went into full effect on January 1, 2026, when employees began filing claims. It is mandatory for most employers with 10 or more employees in Delaware: employers with 10 to 24 employees cover parental leave only, and employers with 25 or more provide full coverage (Delaware Paid Leave). Employers with nine or fewer employees are exempt but may opt in (Delaware Paid Leave for employers).

Contributions toward Delaware Paid Leave began January 1, 2025.

Source: Delaware Department of Labor, Delaware Paid Leave

What employers do: Employers with 10 or more Delaware employees must participate through the state plan or an approved private plan, file quarterly hours and wage reports and remit contributions (Delaware Paid Leave for employers); they may have employees pay up to 50% of the program cost through payroll deductions (Delaware Paid Leave employers and TPAs guide).

Covered employees can receive up to 80% of their wages, up to $900 per week (Delaware Paid Leave).

Contracts and licenses can add their own conditions: a Delaware license, a lease or a client agreement can name general liability limits or certificate wording. The certificate of insurance checklist tracks them, and the requirements-by-state guide covers other states.

• Workers' compensation: Delaware Department of Labor, Division of Industrial Affairs, Office of Workers' Compensation
• Auto liability minimums: Delaware Division of Motor Vehicles, Insurance Requirements
• Paid leave and disability insurance: Delaware Department of Labor

The state requirements checklist prepares questions from your headcount and vehicles; to ask PolicyBenchmark to follow up, request coverage help.