FAQ: Workers' Compensation Insurance in Maryland

Maryland workers' compensation insurance covers any medical expenses, lost wages, and even burial fees associated with an employee who is injured or becomes ill from doing their job. This policy protects the business from ongoing financial devastation. 

Premiums for your business policies will vary due to your individual risk factors. In Maryland, workers' compensation rates vary by job category and industry. Check out current workers' compensation rates below in Maryland, per $100 of employer payroll:

IndustryLow CostHigh Cost
Ceramic, Tile, and Stone Work$3.22$3.22
Trim- Finish Carpenters- Cabinets- Countertops$4.76$4.76
Drywall Contractors$5.84$5.84
Painting Contractor$3.68$3.68
Floor Installers- Wood-Carpet-Laminate$3.20$3.20

All business owners with employees must carry workers' compensation insurance in Maryland. Coverage limits must meet or exceed local guidelines to comply. If you're found without proper protection your business could be on the hook for penalties. 

Your Maryland workers' compensation coverage will cover multiple types of losses. The most common incidents that are typically included under your policy are below:

  • Traumatic injuries
  • Repetitive injuries
  • Some mental or cognitive injuries
  • Occupational illnesses/diseases

Not every loss will be covered under your Maryland workers' compensation policy. That is why it is extremely important to have proactive safety protocols in place for staff members and proper documentation if a claim ever arises. Below are some incidents that won't be insured under your workers' compensation policy:

  • Intentional injuries or illnesses
  • Injuries or illnesses sustained outside of work
  • Injuries or illnesses sustained while committing a crime
  • Injuries or illnesses sustained under the influence of drugs or alcohol

Certificates of insurance may be requested by a client, government, or other entity that wants proof of coverage to do business with you. These certificates can be obtained from your insurance agent and show your coverage limits and expiration dates. They will also be signed by your licensed agent to be accepted. 

If you're looking for the most affordable workers' compensation insurance through reputable carriers, then consider working with an independent insurance agent. They do the shopping for you at no additional cost through top-rated markets so you don't have to.

Most states do not count insurance payouts as taxable. In Maryland, your employee's workers' compensation benefits will not be calculated as taxable income in most cases. Speak with your insurance agent to see how this applies to your situation.

Find Workers' Compensation Insurance Near You

National Average Cost of Workers' Compensation Insurance

Healthcare $1,825 Per $100,000 payroll

Retail Trade $2,850 Per $100,000 payroll

Construction $7,430 Per $100,000 payroll

Workers' Compensation Insurance Laws in Maryland

Almost all business owners with employees are required by law to carry workers' compensation coverage in Maryland. Coverage must meet Maryland's minimum liability limits to comply with local law. If your operation is found without proper protection, you could face serious fines. 


Common Workers' Compensation Claims in Maryland


The Top 5 industries with the most fatal occupational injuries:

  1. Construction
  2. Transportation and warehousing
  3. Manufacturing
  4. Crop farming
  5. Landscaping


The Top 6 most reported fatal occupational injuries:

  1. Violence and other injuries by persons or animals
  2. Transportation incidents
  3. Fires
  4. Falls, slips, trips
  5. Exposure to harmful substances or environments
  6. Contact with objects and equipment


According to statistical data, 59 workers' compensation claims turned fatal in Maryland in one recent year. Fortunately, your business's workers' compensation policy will provide coverage that helps pay for funeral costs due to death claims.