Maryland Workers’ Compensation

Maryland worker's compensation text overlaying image of annapolis If you run a business and have employees, you’ll need to purchase Maryland workers’ compensation insurance. In fact, this type of insurance is a requirement in most states, including Maryland, with some exceptions. It helps pay your employees’ medical bills if they sustain an injury on the job. And limits your liability for workplace accidents, is a requirement in most states, including Maryland, with some exceptions. 

Workers’ compensation insurance in Maryland costs around $0.98 per $100 of covered payroll. That means a business with a total annual payroll of $100,000, for example, will pay approximately $980 per year for workers’ compensation insurance, or around $81 a month. These rates will vary, though, depending on a number of factors.

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The likelihood of an on-the-job injury at your workplace will help determine your workers’ compensation rates. When applying for your policy, you can classify different employees with different class codes to make sure you’re paying the right amount. For example, some office workers may have lower workers’ compensation costs than those who perform more labor-intensive tasks and are more vulnerable to injury.

 

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What’s Covered

If one of your employees is injured at work or becomes ill because of workplace conditions. Workers’ compensation in Kentucky can help pay for their medical bills. The weekly average wage of an employee is used to calculate workers’ compensation benefits. The type of claim determines the exact amount.

The most important thing that workers’ compensation does is offer coverage for your injured employee’s medical treatment. This would include doctor’s appointments, hospital stays, and surgical procedures. Following a return to work, an employee may need ongoing care. Such as follow-up appointments or extra surgeries; workers’ compensation will also cover these medical bills.

Additionally, if the incident causes permanent or temporary disability, the employee will receive compensation in the form of weekly or lump sum payments. If your employee suffers a temporary disability, their injury is preventing them from performing their regular job while they recover. They have a permanent disability if a doctor determines that they will not fully recover from their injury. 

These two classifications fall into two subcategories:

  1. Temporary total disability (TTD) – These payments will be made if your employee is unable to work at all during their recovery.
  2. Temporary partial disability (TPD) – TPD payments will be made if your employee is still able to work, but with certain restrictions, such as requiring lighter duties or fewer hours. Even if your company does not provide work that meets these requirements, the employee may still be eligible for these payments.
  3. Permanent total disability (PTD) – If the accident or illness leaves your employee unable to work at all, even after recovery, they will be eligible for PTD payments.
  4. Permanent partial disability (PPD) – If an employee has permanent impairments but is able to work with those impairments, they will be eligible for PPD.

 

Maryland’s Workers’ Compensation Death Benefits

If an employee dies as a result of a work-related injury or illness, surviving dependents may be eligible for death benefits.

Only certain family members, such as spouses and children, can claim death benefits in some states. In Maryland, any family member who was financially dependent on the deceased worker is eligible to receive benefits.

A surviving dependent is usually entitled to two-thirds of the deceased worker’s average weekly wage, up to the legal maximum. This is contingent on how much the deceased worker contributed to the family’s income. In other words, if the individual was responsible for 60% of the household expenses, their dependents can receive 60% of the employee’s average weekly wage.

Survivors are entitled to death benefits for a minimum of five years and a maximum of twelve years, depending on the circumstances. Workers’ compensation in Maryland also covers reasonable funeral expenses up to $7,000.

 

Maryland’s Workers’ Compensation Laws

The requirements surrounding workers’ compensation vary by state. Maryland businesses are required to have workers’ compensation coverage for both full-time and part-time employees, in most cases.

Agricultural employers with fewer than three employees or an annual payroll of less than $15,000 are exempt from Maryland’s workers’ compensation requirement.

Self-employed, partners in a business partnership, and independent contractors are also not required to have Maryland workers’ compensation insurance. But if you fall into this category, you may decide to purchase this coverage to protect yourself from the high cost of medical expenses.

 

How to Buy Workers’ Compensation Insurance

In most cases, you can obtain workers’ compensation coverage from a private commercial insurance company. EZ provides a simple online application for Maryland businesses to compare quotes from top insurance carriers, as well as licensed agents with insurance expertise who can help you choose the best carrier and policy for your business.

If you do not qualify for a policy from a private insurer, you can purchase workers’ comp from the state fund. The Chesapeake Employers’ Insurance Company administers a competitive state fund for workers’ compensation insurance in Maryland. This is the last resort for employers in the state who are unable to find standard coverage due to a large number of previous workers’ compensation claims.

If you meet certain criteria, you can self-insure your workers’ compensation claims. This means you will pay your own workers’ compensation medical and rehabilitation costs, rather than paying a premium and submitting claims to a commercial workers’ compensation insurer. Because self-insured employers are liable for all workers’ compensation costs, the state advises only large employers to consider self-insurance.

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How to Get the Most Savings

The majority of the cost of workers’ compensation comes from factors beyond your control. However, there are still ways to save. Implementing a safety program is a great way to reduce workplace injuries and claims, which will lower your premiums. So regardless of your industry, it is important to have safety and standard operating procedures in place. Employees who have safety training are less vulnerable to injuries, lowering your workers’ compensation costs.

It is also a good idea to regularly review your claims history. Evaluating your claims history on a regular basis can help you identify and correct patterns. You might discover that certain aspects of your business operations are frequently causing claims. This allows you to adjust the operation to make it safer. You can save money by keeping an eye on potentially dangerous operations.

Correctly classifying your employees is one of the most effective ways to save money. When you apply for your workers’ compensation policy, you will classify each of your employees depending on their job’s risk. And this risk classification influences the cost of your workers’ compensation. For example, you might pay less to insure an office worker than you would a manual laborer. It’s also important to correctly classify your employees because you may receive a fine if you fail to do so.

Begin a free online application today to compare workers’ compensation insurance quotes for your small business from leading U.S. insurers. EZ’s agents specialize in insurance for a wide range of small businesses. Working with our agents can save you hundreds of dollars a year on coverage.

 

Maryland Workers’ Compensation FAQs

  • Are you required to have workers’ compensation insurance in Maryland?

Every business with one or more employees is required to carry workers’ compensation insurance in Maryland. Employers in Maryland who fail to maintain the required workers’ compensation insurance coverage may be fined up to $10,000. If the company is incorporated, the executives would be personally liable for this fine.

Employers who deduct any portion of workers’ compensation costs from employees’ wages may be charged with a misdemeanor.

  • How do workers’ compensation settlements work in Maryland?

A workers’ compensation settlement is an agreement between all parties to settle your employee’s workers’ compensation claim. A workers’ compensation settlement is a complete and final resolution. An injured worker is never obligated to reach a settlement.

If your employee is at maximum medical improvement or will not require further medical treatment, they can accept a lump sum payment in exchange for closing the claim. Workers’ compensation settlements in Maryland must be approved by the Maryland Workers’ Compensation Commission (WCC), which handles claims and enforcement.

  • What is the statute of limitations in Maryland?

A worker must notify his or her employer within 10 days of the injury. Workers’ compensation claims must be filed with the WCC within 60 days of the occurrence of an injury or the discovery of a work-related illness.

 

 Why Use EZ

We do everything in our power to make shopping for workers’ compensation insurance as easy and stress-free as possible, and we give each of our customers our undivided attention. As soon as you fill out our form, you will receive instant, free quotes from your dedicated agent, who will give you personalized service and will work to understand your needs. We want to ensure that you make the best decision possible, and that you get the best coverage at the best price. Our services are completely free so check your local quotes today!

If you still have questions, feel free to give us a call at 877-670-3538. You will speak with a local insurance agent who can answer all of your questions, and help you find the workers’ compensation policy that works best for your business.

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About The Author:
Cassandra Love

With over a decade of helpful content experience Cassandra has dedicated her career to making sure people have access to relevant, easy to understand, and valuable information. After realizing a huge knowledge gap Cassandra spent years researching and working with health insurance companies to create accessible guides and articles to walk anyone through every aspect of the insurance process.

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