Maryland workers' compensation insurance: Your ultimate guide
Everything to know about workers’ compensation for
Maryland
businesses
What does workers’ compensation cover?
A standard workers’ comp policy covers four primary areas: medical expenses, lost wages, employer liability and ongoing rehabilitation. EverPeak policies ensure your crew gets the care they need to return to work safely while protecting your business from the costs of workplace accidents.
Medical care
Coverage for the necessary treatment resulting from a work-related injury or illness.
Lost wages
Partial pay for employees unable to work while recovering from an injury.
Legal protection
Financial support for your business if an employee files a lawsuit related to an accident.
Ongoing care
Rehabilitation and training to support employees re-enter the workforce, and ongoing benefits for permanent injuries.
Death benefits
Financial support for the families.
What are
Maryland
's workers' comp laws?
Workers' compensation is a crucial safety net that protects employees in the event of workplace injuries or illnesses. Understanding the Old Line State's workers' compensation laws is essential for both employers and workers to ensure fair treatment and swift resolution in case of accidents on the job.
Our detailed breakdown of Maryland’s workers’ compensation insurance and its laws will help you navigate and understand policies and rules more easily.
If you’re a business owner in Maryland, it’s crucial to protect yourself, your business and your employees with workers’ compensation insurance.
What is workers' compensation?
Workers’ compensation insurance provides financial and medical benefits to employees who suffer job-related injuries or illnesses. It’s designed to provide employees who suffer work-related injuries or illnesses with medical treatment and indemnity benefits.
Without workers’ compensation, the cost of a work-related injured or ill employee’s medical treatment could become the responsibility of the employer and their business.
Maryland workers' compensation laws
Maryland requires that all employers with one or more employees provide workers' compensation insurance coverage.
While there are certain exemptions, such as independent contractors and specific agricultural laborers, these exceptions are the minority.
It's essential to determine your status to understand your eligibility for workers' compensation benefits.
Who is covered and exempt from
Maryland
workers' comp?
Who is covered?
Workers' compensation benefits in Maryland may include medical treatment, wage replacement, vocational rehabilitation, and compensation for permanent disabilities. The amount received depends on the severity of the injury and its impact on the employee’s ability to work.
Who’s exempt from workers’ compensation?
Exemptions from workers’ compensation in Maryland may include, for example:
1. Independent contractors
2. Agricultural employers employing less than three workers
3. Business owners with an annual payroll that is lower than $15,000 per year
Benefits provided
Workers' compensation benefits are typically provided in exchange for injured employees waiving their right to sue their employer for negligence in most cases.
This trade-off is a fundamental aspect of the workers' compensation system, ensuring that employees receive timely benefits for workplace injuries while providing employers with some protection from being sued by an employee for the work injury.
Maryland’s workers’ comp insurance provides three types of benefits for work injuries:
- Medical benefits
- Lost wages
- Permanent disability
These benefits cover:
- Work-related accidents, injuries and/or illnesses
- Missed wages resulting from time away from work for recovery
- Ongoing care costs for work-related injuries or illnesses
- Funeral costs for fatal work-related illness or accidents
- Permanent disability benefits
Maryland workers’ compensation cost
Several factors influence the cost of workers' compensation insurance in Maryland:
- Industry: Different industries have varying risk levels, affecting your premium.
- Payroll: The size of your payroll impacts your premium – more employees, higher cost.
- Claims History: Your past claims history can sway the cost – a clean track record can save you money.
- Safety Measures: Implementing safety measures can actually lower your premium, making it a win-win for your team and your budget.
How much does workers’ comp cost in
Maryland
?
How do you file a workers’ compensation claim in
Maryland
?
Maryland’s workers’ comp claims process
In Maryland, it's crucial to report any work-related injury or illness promptly. Failure to do so can jeopardize the ability to claim workers' compensation benefits.
The Maryland workers’ compensation insurance claims process includes the following steps:
- Inform employer immediately
- Worker must complete Employee Claim form online
- Employer must complete and submit Employer’s First Report of Injury (FROI) via mail or online
- Within 21 days of filing a claim, benefits are provided by employer and/or workers' compensation partner or file is contested
- Within 30 days of filing the claim, the Workers' Compensation Commission will either issue an award or put the case in line for hearing because the contesting issues were filed
- “Healing Period”: Medical care and treatment occur
- Vocational Rehabilition or determination of permanent disabillity benefits
Maryland’s workers’ comp claims pay
Maryland injured workers pay is based on the following classifications:
Temporary partial disability benefits
Fifty percent (50%) of the difference between the employee’s Average Weekly Wage and their wage-earning capacity thereafter, but not to exceed 50% of the State Average Weekly Wage or $728.
Temporary total disability benefits
66 ⅔% of the employee’s Average Weekly Wage not to exceed 100% of the State Average Weekly Wage or $1,456.
Permanent total disability benefits
66 ⅔% of the employee’s Average Weekly Wage not to exceed 100% of the State Average Weekly Wage or $1,456.
For awards for a period of less than 75 weeks for events occurring on or after January 1, 2023 but before January 1, 2024, compensation is to be paid at the rate of thirty-three and one-third per centum of the employee's Average Weekly Wage, not to exceed 16.7% of the State Average Weekly Wage or $235.00. The minor disability category does not apply to certain public safety employees. See LE 9-628(a).
For awards for a period equal to or greater than 75 weeks, but less than 250 weeks, for events occurring on or after January 1, 2023 but before January 1, 2024, the compensation is to be paid at 66 ⅔% of the employee’s Average Weekly Wage not to exceed one-third of the State Average Weekly Wage or $468.00.
Serious disability benefits
66 ⅔% of the employee’s Average Weekly Wage not to exceed 75% of the State Average Weekly Wage or $1,092.
Death benefits
For deaths occurring prior to October 1, 2011, the following formula applies:
If wholly dependent, 66 ⅔% of the employee’s Average Weekly Wage not to exceed 100% of the State Average Weekly Wage.
If partly dependent, 66 ⅔% of the employee’s Average Weekly Wage not to exceed 66 ⅔% of the State Average Weekly Wage.
For deaths occurring on or after October 1, 2011, the following formula applies:
1. 66 ⅔% of the deceased employee’s Average Weekly Wage at the time of the occurrence not to exceed the State Average Weekly Wage.
2. The deceased employee’s income shall be divided by the family income to determine the percent of family income earned by the deceased. The percent of family income earned by the deceased is multiplied by the death benefit (as calculated in paragraph 1) to determine the amount payable, collectively, to all dependents.
In accordance with Section 9-683.3(i) of the Labor and Employment Article, all dependents who are neither a dependent spouse nor a dependent child shall be entitled to no more than a total of $65,000, collectively, as their portion of the total death benefits payable.
Beginning on January 1, 2012, this benefit limit shall be adjusted annually by the same percent applicable to the adjustment of the State Average Weekly Wage.
How to get workers' compensation
Insurance requirements for employers
Generally, employers with one or more employees are legally required to have workers’ compensation coverage. Compliance with these requirements is essential to protect both the employer and employees.
Choosing the right insurance provider
When selecting a workers' compensation insurance provider, consider factors such as the provider's experience in the industry, financial stability, coverage options, claims process, customer service, and cost.
We recommend requesting multiple quotes and comparing the offerings before deciding.
Covering your business and employees with a trusted insurance partner — like EverPeak — brings peace of mind so you can focus on your bottom line.
FAQs
Enforcing safety protocols, providing proper employee training, maintaining a clean and hazard-free work environment, and regularly reviewing safety practices can significantly reduce workplace injuries.
Your premium is primarily determined by your industry payroll classifications, geographic location and total annual payroll. Your business’s safety history can also play a major role in determining your final rate. Three key factors influence your base insurance rate:
- Industry classification codes: Higher-hazard trades naturally carry higher baseline rates.
- Geographic location: Rates and statutory benefit structures fluctuate heavily by state lines.
- Historical safety record: Maintaining an accident-free workplace lowers your Experience Modification Rate (E-mod), resulting in built-in premium discounts.
Most states require businesses with employees to carry workers’ compensation insurance to stay compliant. Requirements vary by location, but having coverage ensures your business is protected and your team has access to benefits if an injury occurs.
Employees can verify online if their employer has coverage through the state’s online search tool.
Ideally, the incident should be reported immediately or within a few days of the occurrence. Prompt reporting helps ensures the necessary steps are taken to initiate the workers' compensation claims process.
Whether you need coverage for contractors depends entirely on your state’s specific regulatory definitions and formal worker classification tests. Since misclassification regulations are highly complex and can lead to severe audits or stop-work orders, it’s vital to ensure your entire labor force is properly verified and protected based on the actual day-to-day work they do.
Learn more: Do independent contractors need workers’ compensation?
In most cases, employees in Virginia are barred from suing their employers for work-related injuries or illnesses. The workers' compensation system provides an exclusive remedy, meaning that employees typically cannot file a lawsuit against their employers. Instead, they must pursue a workers' compensation claim to receive benefits for their injuries or illnesses.
In Virginia, employers who fail to procure or sustain the appropriate workers' compensation coverage for their employees may face civil fines of up to $250 per day of non-compliance. Failure to adhere to this requirement can reach a maximum of $50,000 in fines.
Workers’ compensation is a form of insurance that benefits employers and employees in the case of a work-related injury or illness.
Why choose EverPeak for workers’ comp coverage?
EverPeak protects the hardest-working businesses in (state) with simple, reliable workers’ comp starting as low as $18 a month. Backed by over a century of specialized experience, customers get multi-state coverage, fast and easy claims support, and a vast network of brokers.