Maryland Workers’ Compensation

• Is Maryland Workers’ Compensation insurance required?
• How does Workers’ Comp work in Maryland?
• How much is Maryland Workers’ Compensation?
• Who is exempt from Maryland Workers’ Compensation insurance?
• How NEXT helps Maryland small business owners

Is Maryland Workers’ Compensation insurance required?

Most Maryland businesses with employees are required by state law to carry workers’ compensation insurance. It can help protect business owners from the financial cost of workers who get hurt or sick on the job.

But not all injuries that occur at work are covered under the Maryland Workers’ Compensation Commission. For an incident to be covered, it must meet specific criteria, including:

1. The injured or sick person must be an employee, business owner or partner at a business.
2. The injury must be an accident, or it must be an “occupational disease” from long-term exposure. For example, some forms of skin, eye or lung disease can be caused by repeated exposure to chemical solvents or other solutions used on the job.
3. The accidental injury must occur during the employee’s work hours, at the employer’s place of business or another worksite and while the employee is completing tasks related to their job.
4. Even if the injury happened “on the job,”  the harm suffered by the employee must have been caused “in the course of employment.” Just because a person is hurt while at work may not be enough for insurance to apply.

It’s important for your business to have proper workers’ compensation insurance coverage in the state. Without it your company could face fines of up to $10,000.

In addition, Maryland workers’ comp insurance protects your business from potential losses if an employee files a claim.

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How does Workers’ Comp work in Maryland?

If your employee believes they have an injury or illness covered under Maryland workers’ compensation laws, it’s important to notify the claims department at your insurance provider within 10 days of the accident.

They should also file an employee claim form with the Maryland Workers’ Compensation Commission (WCC).

The WCC will decide whether the employee is entitled to workers’ compensation benefits. The commission will also determine the benefit amount.

After the WCC makes a decision, the insurance company is responsible for paying out the benefits.

Employees who experience a covered work-related injury or illness may receive a range of workers’ compensation benefits, including:

Medical and hospitalization benefits

These pay for treating injuries and illnesses. They may include payment for doctors’ visits, hospital stays, surgery, medication and medical equipment.

Vocational rehabilitation benefits

If an employee can no longer perform their job but can still work in another role, they could receive vocational rehabilitation benefits to cover the cost of skill assessment, training for a new job and job placement services.

Temporary total disability benefits

This is when an employee’s injury results in a disability that prevents them from returning to work at all. If the period of disability is less than 14 days, the compensation benefit payments may not be allowed for the first three days except for payments for some medical services. If temporary disability lasts for more than 14 days, then the compensation is allowed from the date of disability.

Temporary partial disability benefits

These benefits apply when the worker can only perform limited or part-time duties at a reduced income level. The employer or its insurer pays the covered employee 50% of the difference between the average weekly wage of the employee and the wage-earning capacity of the employee while partially disabled. The maximum payment is 50% of the State average weekly wage.

Permanent total disability benefits

In Maryland, the loss of use of any of the following constitutes a permanent total disability: both arms, both eyes, both feet, both hands, both legs; or a combination of any two of the following: an arm, eye, foot, hand or leg.

Permanent partial disability benefits

Employers or its insurer pay two-thirds of the average weekly wage of the covered employee, subject to a maximum payment set by the State. Benefit payments for permanent partial disability continue only for a set number of weeks (depending on the disability).

Death benefits

If an employee suffers a fatal injury, their dependents may receive benefits for funeral expenses plus payments in accordance with Maryland state law.

Learn more about workers’ compensation coverage.

How much is Maryland Workers’ Compensation?

Workers’ compensation costs vary across industries. Factors that influence price include:

• The number of employees and the type of work they do.
• Your total payroll.
• Your insurance claims history.
• The locations where you do business.

Get a free instant quote in about 10 minutes from NEXT to see your workers’ comp insurance costs.

Who is exempt from Maryland Workers’ Compensation insurance?

While most Maryland businesses are required to have workers’ comp insurance, there are a few exceptions. 

Sole proprietors, partners in partnerships, officers of a corporation and members of a limited liability company (LLC)  aren’t required to have coverage for themselves. They can elect to purchase a policy. And it may be a good idea.

Workers’ comp insurance may help pay for medical bills and provide partial compensation for lost wages for anyone in any profession.

How NEXT helps Maryland small business owners

NEXT offers an easy way to get a free workers’ compensation insurance quote, purchase coverage in about 10 minutes, and access your certificate of insurance the next day.

NEXT strives to resolve every claim quickly. Learn more about our claims process and how our claims advocates will work with you after an employee injury.

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