Maryland Workers Compensation Insurance Requirements

Maryland isn’t the only state to require Workers Compensation Insurance, it is a state-mandated requirement for most employers in states across the country, except for Texas. If you are an employer in Maryland and have one or more employees, you will need to purchase workers’ compensation insurance for your employees.

If you’re a sole proprietor or a partner in a legally-formed partnership, you are typically not considered an employee however, you can make the election to be covered under a workers’ compensation insurance policy. Officers in a corporation or an LLC will generally be covered under a workers’ comp policy if he or she is providing a service for the entity for which monetary compensation is being offered. In certain situations, individuals who work in close corporations and officers in a company who own 20% or more in stocks may opt out of workers’ compensation coverage under the policy.

Employers in Maryland are required by law to provide this coverage to employees and employees are provided wage loss and medical benefits if injured on the job. The policies cover employers in the event legal action is taken against them by an injured employee. Workers’ compensation is considered a “no fault” insurance policy for those injured or made ill while on the job. “No fault” means that benefits are paid to an employee who is injured while on the job regardless of whose negligence may have precipitated it.  If, as an employer, you do not have workers’ compensation insurance and an employee is injured you could be opening the company up to a lawsuit. Additionally, not having workers’ compensation opens the company up to serious fines from the state.

Workers’ compensation policies are available through private insurance providers or the Injured Workers Compensation fund. As your potential insurance agent should explain, your premiums are based on claims your company may have had in the past and your annual payroll. As with any other type of insurance coverage it makes sense to request quotes from more than one provider and make certain you are getting the best coverage at the best price.

If you need a quote, contact Todd at Balderson Insurance today.