Delaware Contractor Insurance Requirements
Delaware requires workers' compensation for employers with one or more employees through the Delaware Office of Workers' Compensation. Contractors must be licensed by the Delaware Division of Revenue and carry general liability insurance. Delaware's relatively small geographic footprint means most contractors hold licenses in neighboring states as well, so property managers should verify which state's minimum requirements apply. The state's status as a corporate domicile means many large construction entities are Delaware LLCs, but insurance requirements follow the state where work is performed.
Delaware COI Requirements at a Glance
The following table summarizes the minimum insurance requirements for contractors operating in Delaware. Commercial property managers often require limits above state minimums.
| Coverage Type | Minimum / Status |
|---|---|
| General Liability (per occurrence) | $300,000 |
| General Liability (aggregate) | $600,000 |
| Workers' Compensation | Mandatory 1+ employees |
| Umbrella / Excess Liability | Commonly Required on Large Projects Common minimum: $1,000,000 |
| Additional Insured Endorsement | Commonly Required |
| Waiver of Subrogation | Commonly Required |
Coverage Notes
GL: Delaware contractor licensing requires $300K per occurrence minimum. Commercial property managers typically require $1M/$2M.
WC: Delaware Code Title 19 § 2306 requires WC for all employers with 1+ employees. Agricultural workers employed on a farm are exempt.
Umbrella: Commonly required on state contracts and commercial projects.
Additional Insured: Standard on commercial property management contracts.
Waiver of Subrogation: Standard in most commercial contracts in Delaware.
Delaware-Specific Laws & Regulations
These laws directly affect how contractor insurance requirements are structured in Delaware. Property managers should be familiar with these statutes when reviewing vendor COIs.
Delaware Code Title 19 § 2306 (Workers' Comp)
Mandatory WC for all employers with 1+ employees. The Delaware Office of Workers' Compensation administers the system.
Delaware COI Frequently Asked Questions
Common questions from property managers and contractors about insurance requirements in Delaware.
Do contractors in Delaware need workers' compensation?
Yes. Delaware Code Title 19 § 2306 requires workers' compensation for all employers with one or more employees. The Delaware Office of Workers' Compensation enforces compliance.
What are the minimum insurance requirements for contractors in Delaware?
Delaware contractor licensing requires at least $300,000 per occurrence in general liability. Commercial property managers typically require $1M/$2M GL along with workers' compensation and additional insured endorsements.
Does a Delaware LLC need to follow Delaware insurance requirements?
No. Insurance requirements follow the state where work is performed, not where the entity is incorporated. A Delaware LLC performing work in Maryland must comply with Maryland's contractor insurance requirements.
What should a Delaware property manager look for on a COI?
Verify GL limits (at least $1M/$2M for commercial work), workers' compensation coverage, additional insured endorsement naming your entity, and that policy expiration dates are beyond the contract period.
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