Maryland Workers’ Compensation

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What can be covered by Maryland Workers’ Compensation insurance?

Medical expenses

Medical expenses

Like exams, treatment and rehabilitation.
Lost wages

Lost wages

For employee recovery after a work injury.


To teach injured employees new skills if they can no longer do their jobs.
Permanent injury

Permanent injury

Benefits for employees who can no longer work due to injury.

Table of Contents

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 and instantly share a certificate of insurance in about 10 minutes.

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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Other important small business insurance policies in Maryland

Workers’ compensation insurance provides many important protections, but you’ll need additional coverage to protect from all the risks your small business can face.
Many Maryland small businesses also consider:
General Liability
General Liability insurance

General liability insurance protects your business from common mistakes or accidents, such as customer injury or damages to someone’s property.

Commercial Auto
Commercial Auto insurance

If you or your employees drive vehicles for work, you probably need commercial auto insurance. This provides coverage for accident-related expenses in a business-owned vehicle or a personal vehicle being used for work purposes.

Commercial Property
Commercial Property insurance

Commercial property insurance can provide financial help if your business structures, goods, gear or inventory are damaged or destroyed by a covered event.

Errors & Omissions
Professional Liability insurance

Professional liability insurance, also called errors & omissions insurance, provides financial protection against claims of professional mistakes and negligence.

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* 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.

Any starting prices or premiums represented before an actual customer quote are not guaranteed and are representations of existing premiums of active policies as of December 6, 2023. 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.