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Workers’ Compensation Insurance in Maryland

Workers' Compensation Insurance in Maryland

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If your business has employees in the state of Maryland, you’ll need to make sure you adhere to Maryland’s Workers’ Compensation Insurance laws. Workers’ Compensation provides medical and financial benefits for employees who suffer work-related injuries or illnesses or for their survivors in the case of an employee death.

Who needs Workers’ Compensation Insurance in Maryland?

Maryland requires all employers who have at least one employee to obtain Workers’ Compensation Insurance. In Maryland, an “employee” is generally defined as someone who works part-time or full-time for an organization or individual and is not an independent contractor.

The Maryland Workers’ Compensation Act (WCA) defines all of the requirements for Workers’ Comp in Maryland, and the Maryland Workers’ Compensation Commission (MWCC) monitors, enforces, and administers the program. Ensuring your company is in compliance is critical, as there are serious penalties and fines for those who fail to abide by state regulations.

What employees are covered under Workers’ Compensation in Maryland?

Almost all workers are covered under Workers’ Compensation in Maryland. If you provide work or services for an employer, and you are not an independent contractor, you will likely be eligible for Workers’ Compensation Insurance.

The following are categories of employees that are eligible for Workers’ Comp coverage:

The following are categories of employees that are generally excluded from Workers’ Comp coverage:

What Workers’ Compensation benefits do employees receive?

Under Workers’ Compensation in Maryland, employers are required to provide the following benefits to employees who are injured in the course of employment:

Medical Benefits

Temporary Total Disability Benefits

Temporary Partial Disability Benefits

Permanent Partial Disability Benefits

Permanent Total Disability Benefits

Vocational Rehabilitation Benefits

Death Benefits

What are the penalties for breaking Maryland Workers’ Compensation laws?

Failure to adhere to the Workers’ Compensation laws set out by the WCA can result in significant fines and even the closure of your business. In order to avoid any costly penalties, it’s important to consult the WCA or your insurer to ensure you are in compliance. Below are the major ways in which companies can be penalized:

Failure to Purchase Coverage

Unpaid Benefits

Intentional Misrepresentation

Unfiled Reports

How much does Workers’ Compensation Insurance cost in Maryland?

According to the National Academy of Social Insurance Workers’ Compensation Report (October 2019), the average employer cost for Workers’ Compensation in Maryland was $0.98 per $100 of covered wages. This figure is estimated across all insurers and all industries, so the cost to your particular business may vary.

How does the Workers’ Compensation claims process work in Maryland?

The claims process in Maryland begins with the employee. If an employee suffers a work-related injury or illness, he or she must report the condition to the employer within 10 days for an injury, within 30 days for a hernia, and within one year for an occupational disease.

The employer must submit an injury report to the MWCC within 10 days after first having knowledge of a covered injury or death. For occupational diseases, the employer must notify the MWCC promptly.

The employee must then submit a claim to the MWCC for compensation. For injuries, the claim must be filed within 60 days of the injury. For occupational diseases, the claim must be filed within two years of being unable to work or within two years of knowing that the disease caused his or her inability to work. For an employee death, the employee’s dependents must file a claim within 18 months of the death.

Maryland Workers’ Compensation Insurance Resources

For more information on Maryland Workers’ Compensation laws and requirements, please visit the following resources:

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