Delaware insurers handling workers’ comp payments must now meet stricter compliance standards - or risk fines up to $1,000 for every violation.
Signed into law on July 1, 2025, Senate Bill 145 updates Title 19 of the Delaware Code to close gaps in payment and reporting practices. The law does not change workers’ comp benefits themselves - it tightens how insurers, mutual associations, interinsurance exchanges, and self-insured employers document, process, and report disability payments.
At the heart of the law is fraud prevention and accountability. From now on, insurers and self-insureds must ensure every total or partial disability check or direct deposit authorization form includes a clear warning. Claimants accepting a payment are representing that they are legally entitled to it. A false claim could bring state or federal penalties. The exact language must appear on the back of checks (above the endorsement) or on direct deposit authorization forms. Direct deposit forms also need the claimant’s dated signature.
The law also requires employers to obtain signed compensation agreements from injured workers at the time of settlement. The agreement must be in a form approved by the Department of Labor, spell out eligibility requirements, and secure the worker’s acknowledgment of their obligation to report any employment changes that could affect benefits. The agreement must be notarized or witnessed.
Failure to follow these rules carries financial risk. The Industrial Accident Board can impose fines ranging from $100 to $1,000 per offense, after notice and a hearing. The fines go to the state. The law also applies the penalties to willful false statements or fraudulent returns by insurers or self-insureds.
For insurers and self-insureds, SB 145 isn’t about new coverages - it’s about tighter operations, cleaner documentation, and avoiding costly mistakes.
