What are the legal requirements for workers’ comp insurance in Maryland?

Barring a few exceptions, every business owner in Maryland with one or more employees is required by law to provide workers’ compensation insurance. Agricultural employers with three or more full-time employees or a yearly payroll for full-time employees of $15,000 must also carry workers’ comp coverage. Additionally, any domestic worker whose earnings are $750 or more in any calendar quarter from a private household must be covered.

What does workers’ comp insurance cover in Maryland?

In the event of a workplace accident, Maryland workers’ comp insurance provides both medical coverage and payments for lost wages and permanent disabilities. This can include temporary or permanent benefits.

Temporary workers’ comp benefits refer to the scenarios of when your employee is unable to work for more than one week, your worker is able to receive compensation for the lost wages, which are called “lost time benefits.” Your employee’s doctor must certify your employee is not able to work.

Lost time benefits are 2/3 of your employee’s monthly income and determined by your employee’s earnings the month before the individual gets sick or is injured in the workplace. This benefit is considered temporary and only lasts while your employee’s doctor is actively treating you. When your employee’s doctor determines that your team member is able to return to work, your employee will receive a letter from the insurance company called a Notice of Claim Status, which clarifies that the doctor said you can officially work again.

If your employee is unable to return to work full-time or can only do modified work, and as a result they are earning less than they usually do, your employee can continue to get time lost benefits, which will be two-thirds of the difference in their earnings.

Permanent workers’ comp benefits refer to the scenario when your employee’s doctor finds that your employee’s condition is stationary, or not expected to improve any further. In this case, the doctor will determine whether your employee has a permanent disability. If your employee does, the doctor will give your worker a percentage of disability. This number, along with your employee’s age, education, work history helps determine your employee’s rate of compensation.

What types of injuries are covered with workers’ comp insurance in Maryland?

Maryland state law determines what types of injuries are covered by workers’ comp insurance, but there are general guidelines that can help you understand what typically qualifies for a workers’ comp claim.

These include:

• No intentional self-harm, harm that results from drug or alcohol use, or fighting. 
• Must fall within the “course and scope” of employment. If you get into a fender bender on your way home from work after you’ve clocked out for the day, that’s unlikely to qualify.  
• Long-term occupational injuries, including back strain from repetitive motion. When you think of work-related injuries, you probably think of one-time events — but damage can occur over a long period of time. As long as the injury or illness is clearly associated with the employee’s work responsibilities, it may be eligible.