Maryland law requires every business with one employee or more to carry workers’ compensation insurance.
Every business is required to carry workers’ compensation insurance coverage in Maryland. The exceptions to this requirement are agricultural employers that have fewer than three employees or an annual payroll that totals less than $15,000.
A business owner who is a sole proprietor or a partner in a business partnership does not need to be covered by Maryland workers’ compensation insurance.
Estimated employer costs for workers’ compensation in Maryland are $1 per $100 in covered payroll, according to the National Academy of Social Insurance [PDF].
Maryland workers’ compensation insurance can be obtained from private insurance companies or through the Chesapeake Employers Insurance Company, which is considered the insurer of last resort for any business that’s unable to get coverage from a private company. Business owners can compare multiple quotes from top-rated insurance companies with Insureon’s free online application.
Self-insurance might be an option for larger companies, but it’s inadvisable for smaller businesses.
An employer that fails to maintain the required Maryland workers’ comp insurance coverage will be fined up to $10,000. If the company is a corporation, the officers would bear personal liability for this cost.
If an employer deducts any part of the workers’ compensation costs from employees’ wages, the employer can be found guilty of a misdemeanor.
If an employee dies as a result of a work-related injury or illness, death benefits can be awarded to surviving dependents.
In some states, only certain family members like spouses and children can claim death benefits. In Maryland, any family member who was financially dependent on the deceased worker may claim benefits.
Usually, a surviving dependent would receive two-thirds of the deceased worker’s average weekly wage up to the legal maximum. However, this depends on how much the deceased worker contributed to the family income. In other words, if the person was responsible for 60% of the household expenses, the dependents can receive 60% of two-thirds of the average weekly wage.
Death benefits are available to survivors for a minimum of five years and a maximum of 12 years, depending on the circumstances. Maryland workers’ compensation also covers reasonable funeral expenses up to $7,000.
A workers’ compensation settlement is an agreement between the parties that will resolve your workers’ compensation claim. This benefits both the employee and the employer. A settlement in a workers’ compensation claim is a full and final resolution.
An injured worker is never required to come to a settlement.
However, if the worker has reached maximum medical improvement or will not require additional medical treatment, they can settle for a lump sum in exchange for closing the claim. Every Maryland workers’ compensation settlement must be approved by the Maryland Workers’ Compensation Commission (WCC), which manages claims and enforcement.
An injured worker must notify the employer within 10 days of the injury. A claim must be filed with the WCC within 60 days of the injury or the discovery of a work-related illness. The statute of limitations for a Maryland workers’ compensation claim is two years from the date of the accident that caused the injury.
Start a free online application today to compare workers’ compensation insurance quotes for your business from leading U.S. carriers. Insureon’s licensed agents specialize in insurance for numerous Maryland businesses.