Workman’s Compensation Fraud

Workman’s Compensation insurance claims have several different facets since the inception of the concept in the 1900’s.  The main purpose for this type of insurance is to protect a business’ bottom line while an employee recovers from an injury sustained on the job.  Under a Maryland workers compensation insurance policy, employees that are involved in work-related activities on site as well as off-site – such as making deliveries – are covered. Work-related illnesses and occupational hazards are also covered under the worker’s compensation policy.  For an employer to cover a fully burdened labor cost (medical benefits, salary requirements, lost wages, and any other employer driven benefits) on average for the state of Maryland is $73.00/hr or $2920.00 per 40-hour workweek. Sustaining this cost without the employee present to aid in the output of products and/or services is a heavy financial burden for any company.

One of the biggest questions surrounding workman’s compensation insurance is how does workman’s compensation insurance differ from other insurance requirements that businesses have?  Differences include: coverage for each employee on the first day of employment regardless of their position. However, it does not cover those individuals that are employed as temporarily or contractually.  Workman compensation insurance covers all incidents, regardless of who is at fault or happenings around the incident.  Also, employees do not contribute to the payment of premiums; it is strictly paid by the company.  Companies in the state of Maryland must purchase the insurance as part of their overall business policy; there are no state programs to support these policies.  Settlements in workman’s compensation cases where an individual is found not to be able to return to his/her position is based upon compensation benefits of that employee provided by the company, not on any set amount as seen with life and accidental death insurance claims.

This type of insurance also absolves the employee’s right to sue an employer for negligence, after the fact, as well. With tens of millions of dollars are paid out in negligence claims each year, this is a key benefit for employers.  However, under Maryland state law, it does not absolve the injured party from suing a third party for negligence.

Balderson Insurance has helped business owners in Maryland solve their workers compensation insurance needs for over 15 years and we welcome the opportunity to help and protect you as well.  Contact us to ask us for information, business classification advice, or a competitive quote for your workers compensation insurance today!