If your Delaware partnership has employees, yes, it must carry workers compensation insurance, but the partners themselves are left off by default. Delaware treats partners the same way it treats a sole proprietor: they are not automatically employees, so a partner is off the policy unless they elect to opt in. Every non-partner employee must be covered from day one, with no minimum headcount.
Who this is for: Partners in a Delaware general partnership, from a two-person professional firm to a partnership with a payroll of employees.
The short version
- A partnership with employees must carry workers comp; there is no headcount minimum.
- Partners are left off coverage by default, the same as a sole proprietor.
- A partner who wants comp on themselves elects to opt in, and their pay is then rated into the premium.
- Every non-partner employee must be covered from their first day.
- A partner who stays off should arrange other coverage, since a health plan may not pay for a work injury.
How Delaware treats partners
Delaware's Workers' Compensation Law does not automatically include partners within coverage. Like a sole proprietor, a partner is treated as an owner rather than an employee, so a partner starts off the policy and must elect coverage to opt in. This is the opposite of how the state treats corporate officers and LLC members, who are covered by default and must sign a written agreement to opt out. If a partner elects in, their share of pay is rated into the premium, and comp then pays for that partner's on-the-job injuries.
| Who | Covered by default? | What to know |
|---|---|---|
| Non-partner W-2 employee | Yes | Covered from day one; cannot be excluded |
| General partner, no election | No | Off the policy by default; a work injury falls back on other insurance |
| General partner who opts in | Optional but active | Elects coverage; their pay is rated into the premium and comp pays their work injuries |
| Partnership with no employees | Partners only | No mandate for partners alone, but a policy may still be needed for a contract |
Whether partners opt in
Because partners are off coverage by default, the decision is whether any of them elect in. A partner who does physical or field work often opts in, so comp pays if they are hurt on the job, which a health plan may not. A desk-bound partner in a professional firm may decide the business risk is low enough to skip it and rely on other coverage. Either way, the choice only affects the partners: any employee the partnership hires must be covered from the first day, with no exception for a small crew.
Why a partnership carries a policy anyway
Even a partnership with no employees often ends up buying coverage. Clients, landlords, and larger firms routinely require proof of coverage before they will sign, and a policy is frequently the price of the contract. And once the partnership hires its first employee, coverage is mandatory. Carrying a policy also protects the partnership: if it fails to carry required coverage, it loses the usual protection and an injured employee can sue the partnership directly for damages. Because partners are personally the employer, that exposure lands on the partners themselves.
A Wilmington example
Illustrative, not a quote. Two partners run a Wilmington accounting firm with three employees. The three employees must be covered from day one, while the two partners are off the policy by default. Because they sit at desks and face little injury risk, neither partner elects in, but they still buy a policy for the staff. When a commercial client asks for proof of coverage before signing an engagement letter, the firm hands over a certificate the same day. See our workers comp for accounting firms page.
Real questions Delaware owners ask
Does our Delaware partnership need workers comp?
If it has any employees, yes, from the first one, with no headcount minimum. The partners themselves are left off by default and can elect to opt in if they want coverage on themselves.
Are partners covered by default in Delaware?
No. Delaware treats partners like a sole proprietor, so a partner is off the policy unless they elect coverage to opt in. That is the opposite of how the state handles corporate officers and LLC members.
How does a partner get coverage for themselves?
The partner elects coverage to opt in. Their share of pay is then rated into the premium, and comp pays for that partner's on-the-job injuries and part of their lost wages while they recover.
Should our partners opt in?
It depends on the work. A partner who does physical or field work usually opts in, so comp pays for a work injury a health plan may not. A desk-bound partner may reasonably skip it and rely on other coverage.
Do we need a policy if the partnership has no employees?
Not by law for the partners alone, since they are off by default. But clients and landlords often require proof of coverage before they will sign, so many partnerships buy a policy anyway.
Is a partner treated like an LLC member in Delaware?
No, and this catches people out. A partner is off coverage by default and opts in, while an LLC member is on by default and opts out. Delaware runs the two in opposite directions.
What if our partnership does not carry required coverage?
Delaware can charge triple the premium you avoided, add daily fines, and after 30 days ask a court to close the business. The partnership also loses its protection, so an injured employee can sue it directly.
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?
- I own a corporation (C-corp or S-corp): do I need it?
- 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 accounting firm 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.