Maryland Workers' Compensation Insurance

Maryland employers are required to carry workers’ compensation insurance.

Workers’ compensation, also called workers’ comp, workmans comp and work comp, compensates employees for injuries or illnesses they sustain at work. Workers’ compensation insurance, which is often used interchangeably, is the commercial insurance policy most employers must purchase to provide this kind of coverage.

Unlike other insurance policies, workers’ comp is regulated at the state level, so rates and coverage requirements differ from one state to the next. Below we cover what Maryland small business owners need to know about workers’ compensation insurance.

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Small Business Work Comp Requirements in Maryland

Businesses with one or more employees, whether part-time or full-time, must have a workers’ compensation insurance policy.

Maryland law allows some officers and LLC members to exclude themselves from workers’ compensation coverage. Sole proprietors and partners are automatically excluded from coverage and must elect to include themselves.

Workers’ Compensation Tips

  • Who needs to be covered by the policy, where you can buy it and how much it will cost are influenced by state legislation and the state's current legal and political climate.
  • Your business must comply with the state where your employees perform work - not necessarily where the business was founded or is based.
  • If your business operates in multiple states, or employees travel across state lines to work, you may need to modify your policy to guarantee coverage.

An expert in workers’ compensation insurance can help you determine which employees can choose to exclude themselves, and help you comply with your state’s laws.

How to Buy Small Business Workers’ Compensation Insurance

Maryland has a private market. You can purchase a workers' compensation policy from any insurance carrier or agency that is licensed to write in that state.

Maryland also has a state fund that competes with the private market. You can contact the Chesapeake Employers' Insurance Company (previously known as the Injured Workers Insurance Fund) if you are having trouble finding coverage.

Coverage and Rates in Maryland

The cost of a small business workers’ compensation policy will vary based on business size, location, industry and claims history. Maryland, like many U.S. states, uses the National Council on Compensation Insurance to advise rates. NCCI collects data on workplace injuries and workers’ compensation claims, and uses it to assign rates by class code, or industry.

Insurers licensed in Maryland use the state-approved base rates to determine the final insurance premium, also factoring in business details like years in business, past claims and formalized safety programs. Learn more about how workers’ compensation costs are calculated.

NCCI has filed rate decreases in Maryland the past several years. In 2018, NCCI filed a decrease of -13.0%.

Maryland Work Comp Resources

Editor’s note: Last updated October 7, 2018

Here's What You Need to Get Started

To buy workers compensation insurance, you need to request a quote from a licensed insurance agent and provide some details about your business.

Here’s what to have in front of you:

  • Number of employees in each class code.
  • Total payroll for all employees. You may be able to exclude yourself if you don't wish to be covered under the policy. 
  • Federal ID Number. If you are a sole proprietor, you can use your Social Security Number.
  • Copy of your workers comp insurance policy, if you've had coverage or claims in the past few years. If you know your company's experience mod, please have your experience mod rating sheet or policy in front of you. Otherwise, you will be assigned a default rating of 1.0.

The information on this page has been interpreted and summarized for your convenience. Please consult your state's governing authority for the most current and complete legislation.