Maryland Workers’ Compensation Insurance

You can save up to 25% in discounts on business insurance.*

Workers’ Compensation can help pay for:

Medical expenses

Medical expenses

Includes examinations, treatments and rehabilitation.

Lost wages

Lost wages

Gives employees time to recover from an injury before returning to work.



Helps employees who need to learn skills and enter a new field.

Permanent injury

Permanent injury

Provides benefits for employees who can no longer work due to injury.

Maryland Workers’ Compensation requirements

Most Maryland businesses with employees are required by state law to have workers’ compensation insurance. It helps protect workers and business owners who get hurt or sick on the job from financial losses.

But not all injuries that occur at work are covered under Maryland’s workers’ comp laws. To be covered, the incident must meet specific criteria, including:

  • The injured or sick person must be an employee, business owner or partner at a business.
  • The injury must be accidental and a result of the work environment. For example, if an employee develops lung disease because they work with or around chemicals all day, the condition will likely be covered.
  • 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.

It’s important to have proper coverage, because without it you could face fines of up to $10,000.1 Plus, maintaining coverage gives your employees peace of mind because they know they’ll receive benefits if they experience a covered injury or illness. And it protects your business from potential losses if an employee files a claim.

Who is exempt from Workers’ Compensation insurance in Maryland?

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 aren’t required to have coverage for themselves.2 But they can elect to purchase a policy. And it may be a good idea.

For example, suppose an independent architect develops carpal tunnel syndrome from hours of working on business designs at a computer and cannot work while undergoing treatment. In that case, workers’ comp insurance may help pay medical bills and provide partial compensation for lost wages.

How does Workers’ Compensation work in Maryland?

If one of your employees 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 as soon as possible.

Your employee may file an employee claim form with the Maryland Workers’ Compensation Commission (WCC).

If the employee can’t work for more than three days, you must report the incident to the WCC and your insurance carrier, using the first report of injury form within 10 days of the accident.

The WCC will decide whether the employee is entitled to receive compensation. If they are, the commission will also determine the benefit amount. After the WCC makes a decision, the insurance company is responsible for paying out the benefits.

What does Workers’ Comp cover in Maryland?

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

Medical and hospitalization

Medical and hospitalization benefits pay for treating injuries and illnesses. They may include payment for doctor’s visits, hospital stays, surgery, medication and medical equipment.

Vocational rehabilitation

Suppose an employee can no longer perform their previous job but can still work. In that case, vocational rehabilitation benefits could include skill assessments, training for a new job, job placements services and more.

Temporary total disability

If the employee’s injury temporarily prohibits them from working, they’ll typically receive two-thirds of their average weekly wage up to a maximum of $1,0803 per week until they can return to work. For absences of 14 days or less, benefits don’t begin until day four. But if the employee misses more than 14 days, they’ll receive compensation for all time missed.

Temporary partial disability

If an employee can return to limited duty or work part-time while they recover, but they’re earning less than before they got injured, they can receive benefits equal to half of the difference between their previous average weekly wage and what they’re currently earning, up to $5404 a week.

Permanent total disability

In Maryland, the loss of use or loss of certain body parts is considered a total permanent disability. Employees are entitled to receive two-thirds of their average weekly wage up to $1,080 per week5.

Permanent partial disability

If an employee becomes partially disabled, they may receive between one-third and two-thirds of their average weekly salary up to $360 per week6.

Death benefits

If an employee suffers a fatal injury, their dependents may receive benefits for funeral expenses plus payments of two-thirds of the employee’s average weekly wage up to $1,080 per week7.

How much does Workers’ Compensation insurance cost in Maryland?

The average Maryland workers’ compensation rate is approximately $1 for every $100 in covered wages, according to the National Academy of Social Insurance.

Your exact rate will depend on a variety of factors, including your claims history, your location and your industry. If you’re in a high-risk industry, you’ll typically pay more than someone in a low-risk industry.

How to apply for Workers’ Comp insurance

Next Insurance makes applying for workers’ compensation insurance fast and easy.

We’ll collect some information about your business through our online application and give you coverage options to choose from. After you select the policy that’s right for you and pay your premium, we’ll provide you with 24/7 access to your certificate of insurance.

If you have questions or need help deciding which policy is right for your business, our licensed, our U.S.-based insurance advisors are available to help.

Other business insurance policies that are important in Maryland

Workers’ compensation insurance helps protect your business from having to pay expensive claims that can significantly affect your bottom line. But there are many things it doesn’t cover. To make sure you’re adequately protected, here are three other types of insurance for Maryland businesses you should consider.
We typically recommend:
General Liability
General Liability Insurance

General liability insurance helps protect your business if someone other than an employee accuses you of damaging their property or injuring them. It also provides coverage for theft, slander and libel.

Commercial Auto
Commercial Auto insurance

If you own a car, you probably have personal auto insurance, but your personal policy doesn’t typically cover vehicles you use in your business. A  commercial auto policy will.

Errors & Omissions
Professional Liability insurance (E&O)

Professional liability insurance provides coverage if a client accuses you of making a mistake — even if you didn’t do anything wrong — that causes a financial loss or injury. It helps pay for legal expenses to defend against a claim and covers damages if they’re awarded.

Get customized insurance wherever you do business

Learn more about workers’ compensation insurance options in the state where you work.

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Let’s find the coverage you need for your business

Business insurance is divided into different policies. We offer seven types so it's easy to design the coverage that fits your business.

General Liability insurance
General Liability

Protect yourself from accidents that cause physical injury or damaged property.

Professional Liability or Error and Omissions Insurance
Professional Liability/E&O

Shield yourself from lawsuits that claim your work errors caused financial losses.

Workers' Compensation Insurance
Workers’ Compensation

Cover medical bills and lost wages if your employees have an accident at work.

Commercial Auto Insurance
Commercial Auto

Stay on the road with coverage for dents, tows and damage to someone else’s vehicle.

Tools & Equipment Insurance
Tools & Equipment

Upgrade your general liability coverage to protect any gear that’s stolen, damaged or lost.

Commercial Property Insurance
Commercial Property

Keep your building, inventory and equipment protected from fire or water damage.

Business Owner’s Policy Insurance
Business Owner’s Policy

Combine general liability and commercial property into one policy to protect your business.

Check out our blog
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Workplace safety tips every business owner should practice

Maryland general contractor license and insurance requirements

Maryland general contractor license and insurance requirements

Workers’ Compensation laws every business owner should know

Workers’ Compensation laws every business owner should know

* To the extent permitted by law, applicants are individually underwritten, not all applicants may qualify. Individual rates and savings vary and are subject to change. Discounts and savings are available where state laws and regulations allow, and may vary by state. Certain discounts apply to specific coverages only.
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Issuance of coverage is subject to underwriting. Not available in all states. Please see the policy for full terms, conditions and exclusions. Coverage examples are for illustrative purposes only. Your policy documents govern, terms and exclusions apply. Coverage is dependent on actual facts and circumstances giving rise to a claim. Next Insurance, Inc. and/or its affiliates is an insurance agency licensed to sell certain insurance products and may receive compensation from insurance companies for such sales. Policy obligations are the sole responsibility of the issuing insurance company. Refer to Legal Notices section for additional information.