2025 Theo Award Winner: DeLea Founders Insurance Trust

When the DeLea Founders Insurance Trust (DFIT) formed in 2007, Delaware municipalities faced a critical challenge. Workers’ compensation costs fluctuated unpredictably, creating budget instability across the state’s local governments. The root cause was Delaware’s unique restriction preventing employers from directing medical care for injured workers, leading to uncontrolled expenses and limited cost management options.

The situation had become unsustainable for many of Delaware’s 57 municipalities. Lost-time claims were mounting, workers’ compensation payouts continued rising, and traditional insurance options provided little relief.  

 Small municipalities with as few as five employees found themselves particularly vulnerable, paying premiums with no meaningful support or resources to manage workplace safety.

DFIT emerged as Delaware’s first workers’ compensation joint insurance pool, initially attracting 13 founding members that recognized the need for a different approach.  

 The concept was revolutionary for the state — creating a self-funded program where municipalities would pool their resources and share both risks and rewards.

Tackling the Problem

Theresa DeSanto, program director, DFIT

DFIT’s transformation began with building support across Delaware’s tight-knit municipal community. Theresa DeSanto, program director, DFIT, reflected on the early challenges of introducing an unfamiliar concept: “It was a very, very new concept. Few understood what it was that we were trying to achieve,” she said.

The breakthrough came when George Wright, the longtime executive director of the Delaware League of Local Governments, embraced the vision. His support provided the credibility needed to convince municipal leaders across the state.  

 “He trusted my story and what we were trying to do,” DeSanto said. “He was able to explain it to the executive committee to approve the support of this program.”

DFIT initially operated as a group retrospectively rated plan — what DeSanto described as “self-insurance on training wheels” — before transitioning to full self-insurance in September 2014. This gradual approach allowed municipalities to understand the program’s benefits while building the critical mass needed for success.

Central to DFIT’s strategy was recognizing that risk and safety mitigation would determine the program’s success.  

“Risk and safety mitigation is the key to success for these programs. Because when you’re self-funding, you’re throwing your money into the pot,” DeSanto said. The trust understood that in a self-funded model, money saved on claims would remain with the members rather than disappearing into insurance company profits.

DFIT partnered with PMA Management Corp. as its third-party administrator, implementing a comprehensive approach targeting lost-time injuries, claims volume, and medical cost savings. The partnership brought specialized expertise in claims administration and risk control, essential components for managing the complex needs of 31 diverse municipalities.

The trust established robust governance structures, including claims and risk committees that review losses as they occur and implement mitigation strategies to prevent future incidents.  

 Regular stewardship meetings became mandatory for members, creating accountability and ensuring municipal leaders understood their role in the program’s success.

“According to our bylaws, every member is required to attend those stewardship meetings,” DeSanto said. “We explain to them the importance of lag time and why that’s important, because we know it can significantly reduce the cost by an actual percentage when you report a claim sooner.”

DFIT’s safety program became a cornerstone of its success.  

 The trust runs nine safety committee meetings annually, conducts regionalized training, and hosts unique events like an annual snowplow rodeo. What started as sparsely attended meetings transformed into engaged gatherings where municipal public works representatives drive the discussions.

“We used to beg people to come to these safety committee meetings. And now, in almost every municipality, somebody from public works shows up at every meeting,” DeSanto said. “And the meetings run themselves. It used to be we would run the meetings and do all the talking. Now the members come.”

The program addressed Delaware’s medical care direction limitation through PMA’s extensive provider network.  

 While municipalities still cannot direct care, PMA’s relationships with medical providers across the state created a comprehensive network. When employees prefer physicians outside the network, DFIT works to bring those providers into their system, ensuring continuity of care while maintaining cost controls. 

 DFIT’s approach to member service distinguishes it from traditional insurance models. 

 “We treat every single municipality as if they were a million dollar piece of business,” DeSanto said. “So those little five employee/employer groups who had nothing, they were just paying money for their insurance premiums, now have this wonderful toolbox of safety and risk management services to help them protect their employees.”

Success to Build On

DFIT’s comprehensive approach has yielded remarkable results across multiple metrics.  

 In 2024, the City of Newark, Del. experienced a dramatic reduction in lost-time claims, dropping from 25 to just six incidents. Workers’ compensation payouts decreased by approximately 50%, demonstrating the program’s effectiveness in controlling costs while maintaining quality care.

Organization: DeLea Founders Insurance Trust * Location: Delaware * Number of Employees: 2,125 * Category: Government & Public Sector

The trust’s focus on prompt claims reporting produced significant improvements. DFIT sharply increased the percentage of claims reported within three days, understanding that delayed reporting typically results in costs that average 64% higher than promptly reported incidents.

Medical cost containment through the PMA partnership has generated substantial savings, with DFIT members saving nearly $3.6 million through the medical cost management program. These savings have enabled the trust to build reserves exceeding $6 million, providing stability and enabling return premiums to members. 

“In partnership with PMA Management Corp., DFIT has taken a focused approach to medical bill savings, claims volume, and lost-time injuries. Their ongoing dedication to workplace safety and accident reduction underscores their commitment to stabilizing workers compensation costs and operating a safer workplace,” said Ted Fricker, senior account executive, PMA Management Corp.

The program’s financial success has enabled DFIT to return substantial amounts to participating municipalities, including a recent distribution of $1 million. These returns demonstrate the fundamental difference between the mutual model and traditional insurance, where cost savings benefit the members rather than external shareholders.

DFIT’s growth from 13 founding members to 31 municipalities represents two-thirds of all Delaware local governments, validating the program’s value proposition. Word-of-mouth recommendations from satisfied members drive continued expansion, with municipal leaders actively recruiting new participants.

The trust’s safety program has fostered a culture shift among Delaware municipalities. Claims frequency has decreased by approximately 50% through focused safety initiatives, while the program’s social media presence showcases weekly safety activities across member municipalities.

Member feedback reflects the program’s impact beyond financial metrics. The comprehensive safety resources and support services have created positive workplace environments where employees feel valued and protected.

DFIT’s success demonstrates how municipal cooperation can overcome systemic challenges. By pooling resources and sharing expertise, Delaware’s municipalities created something greater than the sum of its parts — a program providing superior service, cost savings, and comprehensive support for workplace safety. 

 “Congratulations to DeLea Founder’s Insurance Trust on earning a national Theo Award this year,” added Fricker.

Looking ahead, DFIT continues expanding its services and membership while maintaining its commitment to treating every municipality as a valued partner. The program’s foundation of mutual benefit, comprehensive safety focus, and member-driven governance positions it for continued success.

“We very successfully have built a culture and provide services to Delaware municipalities that they’ve never had available,” DeSanto said. “And it just creates a very positive workplace environment for our members.” &
 

The Theo Award celebrates its sophomore year, honoring 32 workers’ compensation programs for their excellence and service to workers across the nation. To learn more about the award and amazing qualities each winner possesses, visit here.