Self-Insured Private Plan Bond - Statewide in Delaware

Brief Summary

This bond is for Delaware Paid Leave, not workers' compensation, and it is what lets an employer run its own paid family and medical leave plan instead of joining the state program. Having the bond ready alongside your plan documents keeps your approval on track for the next quarterly effective date.

Delaware employers that self-insure their paid family and medical leave obligations under the Family and Medical Leave Insurance Program must furnish a surety bond running to the State, in a form approved and an amount required by the Delaware Department of Labor, under 19 Del. C. 3716(a)(2)a. The Department allows employers with at least 100 employees to self-insure. Public employers are exempt from the bond.

We can help with all Delaware bonds!

How to Apply for a Self-Insured Private Plan Bond:

• Confirm the employer has at least 100 employees and is not a public employer.
• Use the Department of Labor's calculation guide to determine the required bond amount.
• Order the bond in the employer's exact legal name with a surety authorized in Delaware.
• Have the surety execute the Department's Surety Bond Form for Self-Insured Plans.
• Submit the bond with the self-insured plan application and certification through Delaware LaborFirst.
• Keep the bond in force and complete the annual self-insurance renewal.

Detailed Information About the Delaware Self-Insured Private Plan Bond:

This is a paid leave bond

The self-insured private plan bond belongs to Delaware Paid Leave, the Family and Medical Leave Insurance Program in Title 19, Chapter 37 of the Delaware Code. Employers can meet their obligations by joining the state program, buying an insured private plan, or self-insuring. Only the self-insured route requires this bond.

Under section 3716(a)(2)a, an employer whose private plan takes the form of self-insurance must furnish a bond running to the State, written by a surety authorized to transact business in Delaware, in a form approved by the Department of Labor and in an amount the Department requires. The statute does not fix a dollar figure. The Department sets the amount, and its Self-Insured Employers page provides the bond form and a calculation guide. Public employers are not subject to the bond requirement.

Who can self-insure

The Department of Labor states that any employer with at least 100 employees can opt to self-insure. Self-insured employers face a more involved process than other private plan employers, including annual renewals and compliance with state regulations, and they can manage their plans through Delaware LaborFirst.

Timing

The Department accepts private plan applications on a rolling basis with effective dates of January 1, April 1, July 1 or October 1. Employer contributions under the program began January 1, 2025, and an employer with an approved self-insured plan could collect employee contributions beginning July 30, 2025. The Department may withdraw approval of a private plan when its terms or conditions are violated.

Confirm the current bond amount, form and filing steps with the Department of Labor's Paid Leave team before the bond is issued.

Eligibility and Requirements for a Delaware Self-Insured Private Plan Bond:

• Surety company authorized to transact business in Delaware.
• Bond running to the State of Delaware.
• Bond form approved by the Delaware Department of Labor.
• Bond amount as required by the Department.
• Self-insured plan meeting the benefit and certification rules in 19 Del. C. 3716.

Delaware Self-Insured Private Plan Bond FAQs:

Official and Additional Resources for the Delaware Self-Insured Private Plan Bond: