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Delaware Fidelity Bonds for Workers’ Compensation Self-Insurance Groups

Delaware-authorized workers’ compensation self-insurance groups must maintain fidelity bonds for both their administrator and service company, in forms and amounts set by the Insurance Commissioner. This is a narrow group-operations requirement: compare the actual bond’s covered entity, funds, handlers, and claim trigger rather than treating a group’s separate workers’ compensation security as employee-theft insurance. 1,2

What Is Fidelity Bonds?

Fidelity coverage can reimburse certain losses when employees steal money or property they handle. If employees manage company funds, customer property or benefit-plan assets, identify each owner and compare the required protection for each interest. Read the national Fidelity bonds guide.

Delaware Requirements

RequirementDetails
Covered classA workers’ compensation self-insurance group must maintain a fidelity bond for its administrator and for its service company; the Commissioner prescribes each form and amount. 1

What to Watch for in Delaware

  • Request bond evidence for both operational parties

    The Delaware statute separately names the group administrator and service company. If one provider performs both roles, ask the Commissioner and counsel which required bond evidence applies to each role; the statute does not make one entity’s certificate proof that both are covered. 1

  • The statute does not supply the policy wording or amount

    Section 404 leaves bond form and amount to the Commissioner. Before a group relies on an administrator’s certificate, inspect the schedule, named insureds, employee and contractor definitions, covered dishonest acts, discovery period, and loss payee terms. 1,2

  • Keep fidelity separate from group security

    The same chapter separately requires security for the group’s workers’ compensation obligations, which may be a surety bond, deposit, or financial-security endorsement. The Code defines fidelity insurance separately from contract-performance surety insurance; ask what each instrument protects and which claimant can use it. 1,2

  • Review administrator/service-company independence

    Delaware bars specified shared employment, officer/director, and financial-interest relationships between the administrator and service company. Map who controls group funds and who reports a suspected loss, then confirm that the fidelity arrangement covers the actual operators. 1

Who Regulates Insurance in Delaware

Delaware Department of Insurance

The Delaware Department of Insurance licenses and regulates insurers and insurance producers, reviews regulated insurance activity, and handles complaints. Its consumer division can help you raise an insurance concern and its services page links to official license searches. 4,5,6

Surplus-lines tax and stamping office

Reported tax rate: 3% of gross premium, less return premium, when Delaware is the home state When Delaware is the insured’s home state, its 3% surplus-lines premium tax applies to the entire premium of a multistate policy, less returned premiums and excluding federal and state taxes and examination fees. Ask the surplus-lines broker to confirm the home-state determination and tax calculation, and separately explain how exposures are allocated in the required reports; those allocations do not reduce the premium subject to Delaware’s tax. 7,8

Providers With Documented State Licenses

These providers publish a national listing for Fidelity bonds; the state records document licenses for the entities and roles shown below. Some records rely on company-reported information rather than independent regulator verification. A national listing does not confirm the product is available in Delaware. Check the regulator’s license lookup and confirm state availability for your business when requesting a quote.

  • TechInsuranceSpecialty Program Group LLCInsurance producer · checked 2026-09-28TechInsurance’s current licensing page names Specialty Program Group LLC / SPG Insurance Solutions and lists state license numbers, but labels Rhode Island “Individual licenses” rather than identifying a license for the named agency. RI is omitted because this disclosure does not establish agency authority there; this is a search limitation, not an assertion that the company is unlicensed. The remaining state entries are company-reported and are not an insurance product availability map. 15
  • VouchVouch Specialty Insurance Services, LLCInsurance producer, Surplus-lines broker · checked 2026-09-28Vouch’s licenses page, effective January 16, 2025, lists producer licenses in all 50 states and DC. Its separate surplus-lines table includes Idaho number 870820, while a footnote says Georgia and Idaho do not issue agency-level surplus-lines licenses. Because those statements conflict for Idaho, this record keeps Idaho producer-only and does not treat the table number as established agency surplus-lines authority. The page is company-reported and does not establish product availability. 16

Questions to Ask Before You Buy in Delaware

  1. Does the group hold a current Delaware certificate of authority, and has the Commissioner prescribed form and limit requirements for each required fidelity bond?
  2. Are the administrator and service company both named, with the relevant staff, affiliates, and funds-handling roles included?
  3. What claim trigger, discovery period, deductible, and reporting process apply to losses involving pooled contributions or benefit payments?
  4. Which separate security instrument protects workers’ compensation claim obligations, and who is its obligee?

Fidelity Bonds in Delaware: FAQ

Does every Delaware employer need the self-insurance-group bonds? 1

No. The rule applies to an authorized workers’ compensation self-insurance group and its administrator and service company, not to every group member’s ordinary employee-theft exposure. 1

Does the group fidelity bond satisfy a member employer’s ERISA plan bond? 1,3

Do not assume the group operators’ bond covers a member’s plan officials or plan property. ERISA Section 412 has a distinct plan-focused test and exceptions. 1,3

Fidelity Bonds in Other States

Other Coverage in Delaware

Sources

  1. Title 18, Chapter 4, Workers’ Compensation Self-Insurance Groups. Delaware Code Online; Current Code §§ 401-404, 408-410: eligible group, authority, administrator/service-company fidelity-bond requirements, distinct security, relationship constraints. Accessed 2026-09-28.
  2. Title 18, Chapter 9, Subchapter I, Definitions. Delaware Code Online; § 905(a)(1)-(2), fidelity insurance and contract-performance/surety insurance defined separately; official code text. Accessed 2026-09-28.
  3. 29 U.S.C. § 1112, Bonding. Office of the Law Revision Counsel, U.S. House of Representatives; Subsections (a)-(e), current preliminary edition text. Accessed 2026-09-28.
  4. Delaware Department of Insurance. Delaware Department of Insurance; Official Department homepage and regulatory resources. Accessed 2026-09-28.
  5. Services. Delaware Department of Insurance; Department service directory links to the state insurance licensee search. Accessed 2026-09-28.
  6. Consumer Services. Delaware Department of Insurance; Complaint filing and consumer assistance; publishes Consumer Services phone. Accessed 2026-09-28.
  7. Surplus Lines Bulletin 22. Delaware Department of Insurance; Surplus Lines Bulletin 22 (October 2025; printed day is blank), reproducing 18 Del. C. § 1925: home-state tax treatment, all premium on multistate policy if Delaware is home state, 3% rate, and exclusion of federal/state taxes and examination fees from gross premium. Accessed 2026-09-28.
  8. Delaware Code, Title 18, §§1923–1925. Delaware General Assembly; §1923(a)(1),(12) home-state verification and allocation records; §1924(b)(3)–(6) separate premium reporting; §1925(b)–(c) 3% tax, deductions/exclusions and full multistate premium when Delaware is home state. Accessed 2026-09-28.
  9. Licenses. At-Bay; Current producer introduction and state table; At-Bay Insurance Services LLC; P&C and surplus-lines identifiers. Accessed 2026-09-21.
  10. Licenses and Carriers. Coalition; Licenses and Carriers, re-read 22 September 2026: Insurance Licenses table for Coalition Insurance Solutions, Inc., national producer number 18419475, with producer and surplus-lines numbers for all 50 states and DC including California 0L76155, Georgia 196479, Texas 2199630 and 2205589, Pennsylvania 815731 and 817452, Colorado 539028 and Wisconsin 3000108852. Insurance Carriers table naming, with NAIC numbers, Allianz Underwriters Insurance Company 36420, Arch Specialty Insurance Company 21199, Ascot Specialty Insurance Company 45055, Ascot Insurance Company 23752, Aspen Specialty Insurance Company 10717, Chaucer Insurance Company DAC, Coalition Insurance Company 29530, Fireman's Fund Indemnity Corporation 11380, Fortegra Specialty Insurance Company 16823, Lloyd's of London, MSIG Specialty Insurance USA Inc. 34886, MS Transverse Specialty Insurance Company 41807, Steadfast Insurance Company 26387, Vantage Risk Specialty Insurance Company 16275 and Zurich American Insurance Company 16535. Accessed 2026-09-22.
  11. Insurance Producer Licenses. Corgi Insurance; Current complete Insurance Producer Licenses table for Corgi Insurance Services, Inc.; 50 rows covering 49 states and DC (DC 3003091619); no New Mexico row; no NPN or as-of date shown. Accessed 2026-09-28.
  12. About Hiscox US Insurance. Hiscox; Hiscox Insurance Company Inc. NAIC 10200 as Chicago, IL domiciled insurer admitted or licensed in all 50 states and D.C.; Hiscox Inc. as general agent and Lloyd’s coverholder for Syndicates 33 and 3624; surplus-lines placements through licensed surplus-lines brokers; A.M. Best rating statement. Accessed 2026-09-16.
  13. Licenses. ERGO NEXT Insurance; Current entity-by-state license table reopened 28 September 2026: 50 rows under Next First Insurance Agency, Inc., including Washington, DC; New York rows instead list Next Insurance Services PC-1423070 and AP Intego BR-1198885. Accessed 2026-09-28.
  14. Licenses & Disclosures. RiskCube; Property & Casualty Producer/Broker Licenses; February 11, 2026 version. Accessed 2026-09-16.
  15. Insurance Licenses by State. TechInsurance; Current state table; identifies TechInsurance as a division of Specialty Program Group LLC d/b/a SPG Insurance Solutions; lists DC 3000041536 and labels Rhode Island “Individual licenses,” without an agency license number. Accessed 2026-09-28.
  16. Licenses. Vouch; Effective 16 January 2025: Vouch Specialty Insurance Services, LLC, NPN 19926463; P&C table (50 states and DC); surplus-lines table includes Idaho 870820; footnote says Georgia and Idaho do not issue agency-level surplus-lines licenses; Idaho retained as producer-only due to conflict. Accessed 2026-09-15.

Updated .

This guide is informational and does not determine whether a policy is available or meets your needs. Editorial policy. To suggest a correction, contact Spot with a supporting source.

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