Workers’ Compensation Insurance in Maryland
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Maryland workers’ compensation insurance

Maryland law requires every business with one employee or more to carry workers’ compensation insurance.

Who needs workers’ comp insurance in Maryland?

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.

How much does workers' compensation insurance cost in Maryland?

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Estimated employer rates for workers' compensation in Maryland are $0.98 per $100 covered in payroll. Your cost is based on a number of factors, including:

  • Payroll
  • Location
  • Number of employees
  • Industry and risk factors
  • Coverage limits
  • Claims history
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What are the penalties for not having workers’ comp insurance in Maryland?

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.

Workers’ compensation death benefits in Maryland

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.

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Workers’ comp settlements in Maryland

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.

Workers’ compensation statute of limitations in Maryland

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.

Compare workers’ comp quotes with Insureon

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.

Compare workers' comp insurance quotes
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