How does workers' comp work in Maryland?

Workers Compensation Rates in Maryland are pretty good, but there are many ways you can get better value out of your Workers Compensation Policy. Our agents specialize in Workers Comp so they know every way to get the best value no matter your industry. There are numerous credits and deductions that not all business owners know about. Also there are several programs we offer to help a business with their cash-flow through out the year.

One program is Pay as Go Workers Compensation. This allows you to pay each month based on your payroll instead of estimating payroll for the entire year. This option prevents over or underpaying on your policy. Pay as You Go frees up lots of cash-flow for more immediate business needs.

Start a quote online in just a few minutes or call to speak with one of our agents to learn about all the ways we can help you with your Workers Comp Coverage.

Workers' Comp Rules & Information for Maryland

State Insurance Directives Regarding Covid-19

MD “encourages” insurers doing business in MD to make “reasonable accommodations” so policyholders do not lose coverage due to non-payment of premium.  Maryland provides that “reasonable accommodations” may include suspension of premiums due, extension of billing due dates, waiver of installment and late fees.

Discretionary order in effect from 03/20/2020 until further notice.

State Orders Regarding Insurance Claims Related to Coronavirus

No current state orders.

Maryland Workers' Compensation Commission

10 East Baltimore Street
Baltimore, MD 21202-1641

What is Workers' Compensation?

The basic purpose of the Workers’ Compensation is to provide wage replacement benefits and medical treatment for employees who have been injured or become ill due to a work-related injury or illness. It prevents the employer from bearing the costs of injuries that occur during normal business operations.

How does workers comp help my employee?

Employees benefit from workers comp coverage by having lost wages covered while they are hurt or sick and not able to work. It also pays for medical costs they might incur as a result of the sickness or injury.

Contracting Classification Premium Adjustment Program.

This program is applicable to qualifying employers engaged in work with contractors. In order to qualify for the program, a policy must have more than 50% of manual premium attributable to one or more construction classifications and be experience rated.

How does workers comp help my business?

Your business benefits by not being liable for injuries that occur as a part of normal business operations. This applies whether the injury was the fault of the business or was caused by negligent actions of the employee.

Is an independent contractor classified as an employee?

If you answer yes to any of the following questions than an independent contractor is considered an employee and you must carry workers comp coverage. Is the person paid hourly? Does the person perform work that regular employees of you rbusiness perform? Is all or a majority of the work that is the general nature of you rbusiness performed by contract labor? Do you Provide the material for the job?

More Programs and Options

We're always working with our insurance carriers to develop specialized programs for a broad range of industry class codes. Our Target Programs are designed to streamline the underwriting process and help ensure we offer the lowest rates available anywhere.

  • Contractors
  • Home Health Care
  • Janitorial Services
  • Transportation
  • Hospitality
  • And More
Maryland Work Comp Information

Owner Coverage in Maryland

Sole proprietors and partners are automatically excluded from workers comp coverage in Maryland, but may elect to be included on the policy. If included, the rating payroll used is to calculate premium for owners is at a salary of $51,900.00.

Corporate officers are included in coverage, but may elect to be exempt. If included, the minimum weekly payroll is at a minimum rate of $1,000.00 and a maximum of $4,000.00 per week.

Let Workers Compensation help your business navigate workers comp insurance in Maryland.

What Does Workers' Compensation Insurance Cover?

Workers' comp coverage protects employees when injured. It makes good financial sense for both parties.
Injuries and accidents happen. A workers' comp policy is a no-fault system that pays for these accidents and claims. It's required by law in most states.
  • Loss of income for employees unable to perform job duties
  • Medical expenses for employees injured on the job
  • Retraining expenses for employees unable to return
  • Permanent injury or disability for lasting injuries
  • Survivor benefits if employees are killed on the job
Coverage does not protect employers from everything. Sometimes employees and employers can be negligent.
In some instances, workers' compensation coverage will not protect employers or employees from the legal liability resulting from a workplace injury.
  • Injuries resulting from a violation of the law
  • Incidents resulting from employees' use fo drugs or alcohol
  • Injuries that did not occur in connection with the job
  • Clear company policy violations
  • Injuries that did not occur in connection with the job

Workers' Comp Includes Employers Liability Insurance?

Employers liability insurance is an additional layer of coverage included as part of a workers' compensation insurance policy. Employers Liability is know as Part 2 of the policy. It adds two additional coverages for employers:

Employers Legal Liability and Legal Defense Costs

In todays world, there are a variety of reasons employees and third-parties sue employers for damages. Here a some common types covered by employers liability insurance:

Third Party Lawsuits

Your employee sues another party that may have contributed to the injury, In turn, the third party sues your business.

Consequential Bodily Injury

Another party or individual is injured while providing care for the injured employee.

Dual Capacity Legal Action

An employee files a claim but also attempts to sue the employer for being responsible in other ways outside of the employment relationship.

Loss of Consortium

A spouse sues for damages caused by the loss of companionship or relations.

Employers Liability coverage is not included with coverage in the four monopolistic states. Employers in these states can endorse this coverage onto their General Liability policy. That coverage is commonly know as Stop Gap Coverage.

Visit NCCI for more resources and information about workers' compensation class codes. Visit United States Department of Labor for more information about government agencies managing workers compensation insurance rates.

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