Delaware history has been made after the Dept. of Insurance approved and issued a Certificate of Authority for the DeLea Founders Insurance Trust (DFIT) to operate as the first-ever Joint Municipal Insurance Trust for Workers’ Compensation.

The announcement comes as a result of an eight-year effort of George Wright of the Delaware League of Local Governments, Theresa DeSanto of Strategic Insurance Partners, and a core group of municipal members led by chair Ted Becker.

The DFIT Program is sponsored by the DLLG, under direction of Theresa DeSanto as the program administrator, and began in 2008 as a fully insured, group purchasing program for Delaware municipalities. The DFIT began with 11 founding memberships, has grown to 21 municipalities, and now represents membership of more than a third of all municipalities in the state of Delaware.

“The DFIT’s approval to become self insured provides Delaware municipalities the with the opportunity to realize the benefits of a strong workplace safety program, which has reduced their overall costs for workers’ compensation insurance. As the program moves forward, we look forward to other Delaware municipalities joining our 21 founding members as we strive to deliver outstanding service at the lowest possible cost,” said Ted Becker, mayor of the City of Lewes and the DFIT Chair since 2008.

Over the past six years, the DFIT members have experienced cost savings, pro-active risk control and other services, resulting in the 40% reduction of the group claims, and directly impacting the additional benefit of members return premiums. DFIT Trustees established accounts for these funds to be applied toward a self-insured plan at a later date. The combination of the growth premiums in excess of $2 million, an the excess reserves that have compiled over the past six years placed the members in the financial position to achieve their ultimate goal of a self-insured group program.

The DFIT Program will continue to provide its members with better, long-term control of their insurance costs. DFIT Members are no longer subject to the DCRB rates, or general market increases imposed by insurance companies.

Historically, the DFIT group claims have performed extremely well, far better than the claims performance of the general industry. Through the program, embers will directly reap the financial rewards of their clams performance and proactive safety and risk control, fostering a culture of safety for employees.

“The DFIT Program is a great opportunity which allows local and county governments to partner together for better control of their ‘insurance destiny,’” said George Wright, executive director of the Delaware League of Local Governments. “With heavy emphasis on excellent risk control and safety programs, the members will continue to receive financial rewards for their good claims performance, and at the same time, foster an image of everyday safety to their employees.”

“I am hopeful that our membership will continue to grow rapidly over the next few months, and I fully anticipate this will become the statewide, premier placement of insurance for all municipalities in Delaware. The larger the revenue stream of this program, the financial benefits will only continue to increase and ensue the program sustains for many years to come.”

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Delaware makes history with first state-approved municipal insurance trust for workers&rsquo; compensation

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Delaware makes history with first state-approved municipal insurance trust for workers’ compensation