If your Delaware LLC has any non-owner employees, yes, it must carry workers compensation insurance, because Delaware requires coverage once you have employees under Title 19, Chapter 23. The twist for an LLC is the members themselves: Delaware treats an LLC member as covered by default, so members are on the policy unless they sign a written agreement to opt out, and no more than eight members can be excluded that way. That is the opposite of how the state treats a sole proprietor, so the way you set up the business changes the answer.
Who this is for: Owners of a Delaware LLC, whether a single-member LLC with no staff, a multi-member LLC, or an LLC running a payroll of W-2 employees.
The short version
- An LLC with any non-owner employee must carry workers comp; there is no headcount threshold once employees exist.
- Delaware treats LLC members as covered by default, the same way it treats corporate officers.
- A member who wants off the policy signs a written exemption agreement with the LLC, and up to eight members can be excluded.
- Being covered by default only matters once the LLC has a policy in force; it does not by itself require a member-only LLC with no employees to buy one.
- Clients and general contractors routinely require proof of coverage before your LLC can start work.
How Delaware treats LLC members
Delaware does not leave LLC members off coverage the way it leaves off a sole proprietor. A member is treated as covered by default, and a member who wants to be excluded signs a written agreement between the LLC and that member. The law caps this at eight members: no more than eight members of an LLC can be exempted this way. If the LLC carries a policy and a member wants comp to pay their own on-the-job injuries, they simply stay on and do nothing. Covered by default means that once a policy is in force, the member is automatically on it and cannot be dropped except by that written exemption; it does not by itself require a single-member LLC with no other staff to buy a policy. The duty to carry coverage is triggered by having employees, so the moment the LLC has a non-owner employee, that employee must be covered from day one. If you are unsure whether your situation calls for a policy, confirm with the state.
What applies to your LLC
| Your LLC setup | Is comp required? | What owners and staff should know |
|---|---|---|
| Single-member, no employees | Not required on the member alone | No employees means the coverage mandate has not been triggered; if you do carry a policy, you are on it by default unless you sign the written exemption. Confirm your situation with the state |
| Multi-member, no other staff | Members covered by default if a policy exists | No non-owner employees means no standalone duty to insure; if the LLC carries a policy, members are on it unless up to eight sign the written exemption. Confirm with the state |
| Any LLC with non-owner employees | Yes | Employees covered from day one; members stay on the policy unless they sign the written exemption |
Opting out, or staying covered
Because a Delaware LLC member starts out on the policy, the choice is whether to sign the written agreement to leave. If you want your own on-the-job injuries paid by comp, you do nothing and stay covered. If you would rather keep member pay out of the premium and rely on other coverage for yourself, you and the LLC sign the written exemption, remembering that no more than eight members can be excluded. Many owner-run LLCs that hire staff keep the employees on the policy and decide member by member whether the owners stay on. The limited liability in an LLC shields your personal assets from many business debts, but it does not by itself answer an injured employee, which is exactly what comp is built to handle.
A Newark example
Illustrative, not a quote. A two-member electrical contracting LLC in Newark runs the business with one W-2 apprentice. Because the LLC has a non-owner employee, Delaware requires a policy, and the apprentice is covered from day one. Both members work in the field pulling wire and want their own injuries covered, so they leave themselves on the policy rather than signing the written exemption. When a builder they want to work for requires proof of coverage, the LLC already has a policy and can produce a certificate the same day. We make sure the electrical work is rated correctly so the price is fair. See our workers comp for electricians page.
Real questions Delaware owners ask
Does my Delaware LLC have to carry workers comp?
If it has any non-owner employees, yes, from the first one. If it is only members, the coverage mandate has not been triggered, so it does not have to buy a policy on the members alone; covered by default just means that if the LLC does carry a policy, each member is on it unless up to eight sign a written exemption to opt out.
Am I covered as an LLC member in Delaware?
By default, yes, if the LLC carries a policy. Delaware treats an LLC member as covered, so you are on the policy unless you and the LLC sign a written agreement to exclude you, and no more than eight members can be excluded.
Do I need comp for a single-member LLC with no employees?
Generally not on the member alone. Delaware's duty to carry coverage is triggered by having employees, and a single-member LLC with no employees has not hit that trigger. Covered by default only means that if the LLC does carry a policy, the member is on it unless they sign a written exemption, not that a member-only LLC must buy one. Confirm your exact situation with the state.
How do I leave myself off the policy as a member?
You and the LLC sign a written exemption agreement. That keeps your pay out of the premium, but you then have no comp for your own injuries and should arrange other coverage. Delaware caps this at eight members.
Does having W-2 employees change things for my LLC?
Yes. Even one non-owner employee makes coverage mandatory from day one. The policy covers your employees and protects the LLC, so an injured worker generally cannot sue the business directly.
Are LLC members treated the same as a sole proprietor in Delaware?
No, and this trips owners up. A sole proprietor is off by default and opts in, while an LLC member is on by default and opts out. They cut in opposite directions.
Why do clients ask my LLC for proof of coverage?
General contractors, landlords, and commercial customers require proof to manage their own risk. Even when you have covered everyone required, you usually cannot start the job without showing a certificate.
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'm a sole proprietor: do I need workers comp?
- I own a corporation (C-corp or S-corp): do I need it?
- 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)
- Do sole proprietors need workers comp?
- What workers comp does not cover
- Delaware electrician 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.