If you operate a business in Maryland and have even one employee—whether part-time or full-time—you are legally required to carry Maryland Workers’ Comp Insurance. This isn’t a suggestion—it’s the law, and it’s enforced by the Maryland Workers’ Compensation Commission (WCC).
Failing to comply exposes you to major risks, including lawsuits, regulatory fines, and personal liability. This guide explains everything Maryland employers need to know to stay compliant in 2025—from who needs coverage to claim procedures, cost factors, and enforcement rules.
Who Needs Workers' Comp in Maryland?
According to Maryland workers’ compensation requirements, coverage is mandatory if you have at least one worker on payroll. That includes:
- Full-time employees
- Part-time staff
- Seasonal workers
Exemptions:
- Sole proprietors without employees
- Partners in partnerships
- Independent contractors
- Agricultural employers with fewer than three employees or annual payroll under $15,000
Still, even exempt business owners are encouraged to opt in voluntarily. One unexpected injury could result in thousands in medical costs or lost wages—an expense that could cripple a small business.
Industry-Specific Workers' Comp in Maryland
Maryland applies tighter rules and oversight to certain high-risk industries. Here’s how the law works by sector:
- Construction: Contractors must show proof of coverage and ensure subcontractors carry independent policies. Otherwise, you’re liable for their claims.
- Agriculture: Farm owners must provide coverage unless they qualify for the specific exemption (fewer than 3 employees and under $15,000 annual payroll).
- Healthcare: Medical facilities must carry comprehensive insurance due to high exposure to lifting injuries and biohazards.
Failing to meet Maryland employer insurance compliance rules results in steep fines and even possible shutdown orders from the state.
What Maryland Workers' Comp Insurance Covers
A standard policy provides several layers of protection for both the employer and the injured worker:
- Medical Care: 100% of necessary treatment—including surgery, diagnostics, rehab, and prescriptions.
- Temporary Total Disability (TTD): Partial wage replacement when the injured worker is fully out of work.
- Temporary Partial Disability (TPD): Covers lost wages when the employee returns to work in a limited or reduced-pay role.
- Permanent Partial Disability (PPD): Pays compensation for permanent but non-total impairments—such as vision loss or loss of hand function.
- Permanent Total Disability (PTD): Lifetime wage replacement for workers who cannot return to any job due to the injury.
- Vocational Rehabilitation: Retraining support for employees whose injuries prevent them from returning to their previous duties.
Common Workplace Claims Across Maryland
The Maryland workers’ compensation claim process starts with an incident—and some industries see more claims than others. Here are the most common causes:
- Slips & Falls: During icy winters, injuries from falls on slick sidewalks or warehouse floors are among the most frequently reported.
- Overexertion: Lifting, pushing, or repetitive strain leads to back injuries and muscle tears—especially in retail and distribution jobs.
- Repetitive Stress Injuries: Office workers and assembly line staff often suffer from carpal tunnel and joint strain due to constant typing or tool use.
- Machine Accidents: Construction crews and manufacturing workers face crush injuries or amputations from heavy machinery.
Many of these claims can trigger higher premium costs or increased regulatory attention if claims aren’t handled promptly.
Want a simple breakdown of how workers’ comp works? Read our guide: Workers’ Comp Insurance Basics – What You Should Know.
How Much Will It Cost? 2025 Premium Factors
Workers’ compensation premium rates in Maryland can range widely depending on your risk profile, industry classification, and claim history. On average:
Maryland uses the National Council on Compensation Insurance (NCCI) database for classification rates. The experience modification rate (EMR) only comes into play for annual workers’ comp premiums of at least $5,000, making it irrelevant for many small businesses
Your experience modification rate (MOD) plays a role too. Fewer past claims = a lower rate. Safety investments like training programs, protective equipment, and safety audits can lower premiums long term.
Coverage Options in Maryland
Maryland employers have several options for obtaining workers’ compensation coverage:
- Private Insurance Companies: Most businesses purchase coverage through licensed private insurers.
- State Fund: If you cannot obtain coverage through a private insurer, you can get coverage through Maryland’s state fund, the Chesapeake Employers’ Insurance Company.
- Self-Insurance: Large companies that meet specific financial requirements may qualify to self-insure their workers’ compensation obligations.
Maryland Workers' Compensation Claim Process
If an injury occurs, the Maryland workers’ compensation claim process outlines the exact steps both employers and employees must follow:
- Employee Reports the Injury: Within 10 days of the incident
- Employer Files Report: Submit a First Report of Injury with your insurer immediately
- Insurer Review: The insurance carrier reviews evidence, medical reports, and wages to determine benefits
- Dispute Resolution: If disagreements arise, the WCC offers mediation before a formal hearing before a workers’ comp commissioner
- Formal Claim Filing: Injured worker must file Form C-1 with the WCC within specific timeframes:
– Most accidental injuries: 60 days from the accident date
– Workplace deaths: Families have 18 months to file a claim
– Occupational diseases: 1 year from discovery to notify employer
– Ultimate statute of limitations: 2 years from the injury date for all cases
Failing to follow these steps not only delays benefits but also opens your business up to penalties for noncompliance.
Maryland Workers' Comp Penalties for Noncompliance
The consequences of skipping coverage are steep. According to Maryland workers’ compensation penalty guidelines:
- Fines up to $10,000 per violation. Additionally, terminating workers who file claims or failing to secure compensation payments can lead to fines of up to $5,000 and up to a year imprisonment.
- Personal liability for all lost wages and medical bills
- Corporate officers may be personally liable for fines, and additional penalties may apply for specific violations such as retaliating against employees who file claims
- Suspension or revocation of your business license
- Workers can file lawsuits outside of workers’ comp, which may result in higher judgments and attorney fees
These penalties are avoidable. Staying compliant protects both your team and your bottom line.
Get Help Now: Stay Compliant and Covered
From Annapolis tech startups to Baltimore mechanics, Maryland Workers’ Comp Insurance is a must. Here’s what smart employers should do right now:
- Review your employee classifications
- Check if your subcontractors have valid coverage
- Budget using accurate 2025 premium rates
- Install workplace safety protocols
- Ensure you’re registered with the Maryland WCC
Have questions about coverage or costs? Our licensed agents can help you compare quotes and avoid penalties.
Call us now at 855-718-7552 for fast, expert help tailored to your business.
