If you employ anyone in Maryland, workers' compensation insurance is almost certainly legally required — and going without it exposes you to fines and personal liability. Here is what every Maryland business owner should understand.
Is Workers' Comp Required in Maryland?
Yes. Maryland law requires most employers with one or more employees to carry workers' comp. It covers medical care and lost wages for employees injured on the job and protects your business from most injury-related lawsuits. Penalties for going uninsured can include fines and personal liability for claims.
What It Covers
- Medical treatment for on-the-job injuries and occupational illnesses
- A portion of lost wages during recovery
- Permanent disability and death benefits in serious cases
- Employer's liability protection against most injury lawsuits
What It Costs
Premium is driven by your industry class codes, total payroll, and your experience modification factor (your claims history versus your industry). Premiums for low-hazard office classes are typically modest; higher-hazard trades like roofing cost considerably more per $100 of payroll. Strong safety practices lower your mod over time.
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Why Chesapeake Employers
Chesapeake Employers Insurance is the state-created insurer of last resort for Maryland workers' compensation. We often use it for brand-new businesses and harder-to-place operations, subject to its underwriting. Full detail on our Chesapeake workers' comp page.
The Subcontractor Certificate Problem
General contractors routinely require subs to carry their own workers' comp and provide a certificate of insurance before starting work. Without it, the GC's policy may absorb your workers — raising their cost and often getting you turned away. A policy plus a certificate solves it, and we can usually issue certificates fast.
Need coverage or a certificate quickly? Review the workers' comp details and request a business quote — tell us if a job is being held up and we will prioritize it.
Quick Summary
Maryland requires workers' comp once you have employees. Cost depends on class codes, payroll, and your experience mod. Chesapeake Employers can cover almost any Maryland business, including those declined elsewhere, and we can issue certificates fast.
This article is general information from a licensed insurance agency, not legal or tax advice. Policy terms and your carrier's decisions control; consult an attorney about your specific situation.