Maryland Workers’ Compensation Insurance

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.

¹ https://www.wcc.state.md.us/Gen_Info/FAQ%20Employers.html

² http://mdrules.elaws.us/comar/14.09.12.02

^{3 4 5 6} https://www.wcc.state.md.us/Adjud_Claims/Comp_Rates.html

⁷ https://www.wcc.state.md.us/Adjud_Claims/Comp_Rates.html

⁸ https://www.nasi.org/sites/default/files/nasiRptWkrsComp201710_31%20final(1).pdf