Is workers comp required in Maryland?
Maryland generally requires employers with one or more employees to carry workers compensation. Owners, partners and corporate officers are treated under their own rules, and some workers such as certain agricultural or domestic employees may be handled differently.
Buying coverage in Maryland
Coverage in Maryland is sold by private insurers. Every state also has a market of last resort, so even higher-risk or brand-new businesses can generally find a policy. Maryland also has a competitive state-chartered carrier, Chesapeake Employers' Insurance Company, that sells coverage alongside private insurers.
Who sets the rules
The Maryland Workers' Compensation Commission oversees workers comp in Maryland. In Maryland, the National Council on Compensation Insurance (NCCI) provides the classification system and loss costs that insurers use to file rates.
What Maryland employers should know
- Maryland has a state-chartered insurer that serves as a market of last resort while competing with private carriers.
- Government contractors in the D.C. region often need certificates and waivers of subrogation for federal and municipal projects.
Maryland facts employers ask about
The Maryland Workers' Compensation Commission oversees claims and hearings. Nearly every Maryland employer with one or more employees, full- or part-time, must carry workers compensation; limited exemptions apply to some agricultural workers and certain family members.
Coverage is available from private carriers and from Chesapeake Employers' Insurance Company, the former Injured Workers' Insurance Fund, which competes with private insurers and serves as the insurer of last resort. Maryland uses NCCI classifications and loss costs.
Maryland's Uninsured Employers' Fund pays benefits to workers injured while working for an uninsured employer, then pursues the employer for reimbursement plus penalties. The Commission can also fine employers that fail to insure. Contractors working on public projects and many commercial jobs are asked for certificates naming the project owner, so ask your agent how quickly certificates can be issued.
Because Maryland borders Delaware, Pennsylvania, Virginia, West Virginia and the District of Columbia, many Maryland contractors and service businesses send employees across state lines every week, and the policy should list each state where work is regularly performed so benefits and audits line up with reality.
Sources: Maryland Workers' Compensation Commission; Chesapeake Employers' Insurance. Rules change; confirm current requirements with the agency before you rely on them.
How premiums are calculated
Your Maryland premium starts with payroll in each job classification. Experience mods, schedule credits and minimum premiums then adjust it, and the year-end audit settles the difference between estimated and actual payroll. Learn more about how workers comp rates work and preparing for an audit.
Industry guides for Maryland employers
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Maryland workers comp FAQ
Is workers comp required in Maryland?
Maryland generally requires employers with one or more employees to carry workers compensation. Rules and exceptions change, so confirm your situation with the state agency or an agent.
Who oversees workers comp in Maryland?
The Maryland Workers' Compensation Commission administers the workers compensation system in Maryland.
Can I buy Maryland workers comp from a private insurer?
Yes. Private insurers write workers comp in Maryland, and a market of last resort is available for businesses that are hard to place.
How is workers comp priced in Maryland?
In Maryland, the National Council on Compensation Insurance (NCCI) provides the classification system and loss costs that insurers use to file rates. Your Maryland premium starts with payroll in each job classification. Experience mods, schedule credits and minimum premiums then adjust it, and the year-end audit settles the difference between estimated and actual payroll.