If your Delaware corporation has employees, yes, it must carry workers compensation insurance, and that includes the corporate officers unless they opt out. Delaware treats a corporate officer as an employee by default, so officers are on the policy unless up to eight officers who are stockholders sign a written agreement to be excluded. Every non-officer employee must be covered from day one, with no headcount minimum.
Who this is for: Owners and officers of a Delaware C-corporation or S-corporation, whether a small closely held company or one with a full payroll.
The short version
- A corporation with employees must carry workers comp; there is no minimum headcount.
- Corporate officers are treated as employees and are covered by default.
- Up to eight officers who are stockholders can sign a written agreement to opt out.
- Opting an officer out lowers the payroll the premium is built on, but leaves that officer without comp for a work injury.
- Officers who opt out should line up other coverage, because a health plan may not pay for a work injury.
How Delaware treats corporate officers
Under Delaware's Workers' Compensation Law, an executive officer counts as an employee of the corporation unless the officer elects, in writing, to be excluded. That means the default is coverage: unless an officer signs the written agreement, they are on the policy and their pay is part of the premium. The law limits the exclusion to eight officers, and each must be a stockholder of the corporation. This is the same default the state uses for LLC members, and the opposite of the rule for sole proprietors, who start off coverage and opt in. So for a corporation the question is not whether officers can be covered, but whether any of them want to sign to leave.
| Who | Covered by default? | What to know |
|---|---|---|
| Non-officer W-2 employee | Yes | Covered from day one; cannot be excluded |
| Officer who is a stockholder | Yes | On the policy unless they sign the written agreement to opt out |
| Officer who has opted out | No | Off the policy and off the premium; needs other coverage for a work injury |
| The ninth officer who wants out | Yes | Only eight stockholder-officers can be excluded, so any beyond that stay covered |
Whether to keep officers on the policy
Opting an officer out of coverage lowers the payroll the premium is calculated on, which can trim the price. But it also means comp will not pay if that officer is hurt at work, and many health plans exclude work injuries, so the savings can be a false economy for an owner who is active in the business. A hands-off officer who never sets foot on the floor is a more natural candidate to opt out than a working owner-operator. Remember the cap: only eight stockholder-officers can be excluded, so a larger board cannot leave everyone off. Whatever you decide for the officers, the corporation still needs a policy the moment it has any non-officer employee.
Comp versus being sued
Carrying comp does more than satisfy the state. As long as the corporation is insured, an injured employee's remedy is generally the comp claim, not a lawsuit against the business. If the corporation fails to carry required coverage, it loses that protection, and an injured worker can sue the company directly for damages while the company loses its usual defenses. That trade, a predictable premium instead of an unpredictable lawsuit, is the core reason the coverage exists.
A Georgetown example
Illustrative, not a quote. A Georgetown metal-fabrication corporation has two officer-owners and eight shop employees. The eight employees must be covered, and the two officers are covered by default because Delaware treats them as employees. One officer runs the shop floor and keeps himself on the policy so a machine injury would be covered; the other handles only sales and the books and, as a stockholder, signs the written agreement to opt out, trimming the premium. We rate the shop payroll on the right manufacturing category so the price reflects the actual work. See our workers comp for manufacturers page.
Real questions Delaware owners ask
Does my Delaware corporation need workers comp?
If it has any employees, yes, from the first one. There is no minimum headcount. The corporate officers are also covered by default unless up to eight stockholder-officers sign a written agreement to opt out.
Are corporate officers covered by default in Delaware?
Yes. Delaware treats a corporate officer as an employee, so an officer is on the policy unless they elect in writing to be excluded. Only eight officers who are stockholders can be excluded this way.
How does an officer opt out of coverage?
The officer and the corporation sign a written agreement excluding that officer, who must be a stockholder. That removes their pay from the premium, but they then have no comp for a work injury and should arrange other coverage.
Is there a limit on how many officers can opt out?
Yes. Delaware caps it at eight officers, and each must be a stockholder of the corporation. Any officer beyond that eight stays covered on the policy, so a large board cannot leave everyone off.
Should a working owner keep comp on themselves?
Often yes. If you are active in the business, comp pays your medical bills and part of lost wages for a work injury, which a health plan may not. Opting out mainly makes sense for a hands-off officer.
Do I still need a policy if all my officers opt out?
Yes, if you have any non-officer employees. Those employees must be covered from day one no matter what the officers elect, so the corporation still needs a policy.
Is a C-corp treated differently from an S-corp for this?
No. Delaware's workers comp rules turn on whether someone is an officer or an employee, not on the corporation's tax election, so C-corps and S-corps follow the same coverage rules.
Why Delaware owners choose Morrow
- We shop the right market for you. In Delaware you buy workers' comp on the open, competitive market from any private insurer licensed in the state, because there is no state fund, and if no carrier will take you the DCRB-run assigned risk plan is the guaranteed backstop, so we can shop your rate freely and still have a fallback for hard-to-place work.
- We catch pricing mistakes. Your price depends heavily on the category your work falls into for pricing (the class code). Put people in the wrong category and you overpay for years. We review your payroll and classifications before you buy.
- Proof of coverage, fast. Need a certificate (proof of coverage) for a general contractor or a landlord before Monday? We turn those around the same business day for most carriers.
- We help lower the score that drives your price. Insurers give you a score based on your past claims that raises or lowers your cost (the experience modification rate). We review it each year, flag errors, and connect you with return-to-work and safety resources that bring it down.
- Real people when a claim happens. When someone gets hurt, we stay involved through the life of the claim, not just at renewal.
Related Delaware guides
Every Delaware business is set up a little differently. These companion guides answer the same question for other situations, plus the national explainers behind the terms used here.
- Business insurance in Delaware (start here)
- Workers comp: the owner's overview
- I own an LLC: do I need workers comp?
- I'm a sole proprietor: do I need workers comp?
- We're a partnership: do we need workers comp?
- We're a nonprofit: do we need workers comp?
- My workers are 1099: do I still need it?
- Only part-time or seasonal staff: do I need it?
- I only employ family: do I need workers comp?
- Remote or out-of-state staff: do I need coverage?
- What happens if I don't carry workers comp?
- How much does workers comp cost?
- How do I get workers comp (even if turned down)?
- What insurance do I need for a contractor license?
- Workers compensation insurance, explained
- What workers comp costs (national guide)
- Workers comp vs employers liability
- What workers comp does not cover
- Delaware manufacturer workers comp
This guide is general information, not legal advice. Delaware rules and penalty amounts can change, so verify current requirements with the Delaware Department of Labor's Office of Workers' Compensation or a licensed advisor before you rely on them. Last updated: July 2026.