Workers’ Compensation Insurance in Maryland: The Ultimate Guide
In Maryland, an injured worker is eligible for workers’ compensation benefits, including medical expenses coverage. Unlike other states, not all injuries incurred in the workplace in Maryland are entitled to workers’ compensation. It has to be an accidental personal injury that happened in the course of employment.
Here’s what you need to know about Workers’ Compensation Insurance in Maryland.
How Does Workers’ Comp Work in MD?
Any employee in Maryland who suffers an injury or occupational disease while working can receive workers’ compensation benefits that will cover medical bills and part of the lost wages.
The injury must be accidentally arising out of and in the course of employment. Once workers are approved for workers’ compensation benefits, they can expect to receive disability benefits to help make up for lost income.
What Does Workers’ Comp Cover in Maryland?
Maryland workers’ compensation coverage includes:
- Medical Costs: Workers’ compensation insurance in Maryland covers the medical expenses associated with injured workers and claims.
- Employee Wages: Workers’ compensation insurance in Maryland covers most of your employees missing income if they are not able to work due to an injury or illness.
- Funeral Expenses: A workers’ compensation policy covers the cost of funerals of the employees.
What Is an Accident?
According to the Maryland Workers’ Compensation Act, an accident is an unusual, extraordinary event that unexpectedly resulted in injury or illness.
Some injuries are exempt from the rule that it has to be caused by accident. Conditions like hernias are compensable even if it is caused by on-the-job strain rather than an accident, the same with work-related injuries called occupational diseases — a condition obtained from the workplace, like exposure to chemicals or asbestos.
Read more: Occupational Accident Insurance
At the same time, other injuries and illnesses might be eligible only for health insurance coverage.
Types of Medical Benefits Covered by Workers’ Compensation Insurance in Maryland
The following are the medical services covered by Maryland workers’ comp insurance.
- Medical treatment and surgery
- Hospitalization and nursing care
- Medical equipment such as crutches
- Prosthetic devices
Does Maryland Require Workers’ Compensation Insurance?
Every business that has one or more employees in Maryland needs to have workers’ compensation insurance, including full-time and part-time employees.
How Much Does Workers’ Comp Insurance Cost in Maryland?
Maryland workers’ compensation insurance rates are $0.90 per $100 in covered payroll. The cost is influenced by several factors, including:
- Number of employees
- Industry and risk factors
- Coverage limits
- Claims history
How Do I Get Workers’ Compensation Insurance?
You can get workers’ comp insurance through private insurance companies in Maryland.
Do I Need Workers’ Comp for 1 Employee?
Yes, according to the state law in Maryland, any business with one and more employees needs to have workers’ comp insurance.
Do You Get Full Pay on Workers’ Comp?
Usually, workers’ comp insurance in most states offers 66% of your wages. Depending on the state, employees may receive their salaries weekly, bi-weekly, or once a month.
What are the Penalties of Not Having Workers’ Compensation Insurance in Maryland?
Employers in Maryland who don’t have the required workers’ comp insurance can be fined up to $10,000. In case the company is a corporation, the officers would bear personal liability for the cost.
Types of Worker Compensation Maryland Benefits
Temporary Total Disability Benefits
A covered employee whose injuries have resulted in them being unable to work fully during a certain period of time is entitled to workers’ comp to replace the lost wages.
The workers will receive payment, two-thirds of the average weekly wage, but must not exceed the Maryland Average Weekly Wage ($1,322).
If the workers cannot return to work after 14 days, they will be compensated for all the workdays missed from the date of the accident.
All workers are entitled to hospital, nursing, or other medical service benefits, medication, and funeral expenses. The workers’ compensation insurance in Maryland will cover the worker until they are no longer disabled and can get back to work in some capacity.
Maryland workers must have reached optimum medical improvement, even if not totally the same as before the accident.
Temporary Partial Disability Benefits
Covered employees who can only work for part-time hours at a reduced rate or are not able to perform their tasks fully are entitled to receive temporary partial disability benefits for the temporary loss of income.
Maryland workers’ compensation will help them stay on top of their expenses amid their disability. The insurance company may also cover lost wages and other medical expenses as part of the workers’ comp package.
Permanent Partial Disability Benefits
Employees who have permanent impairments and are unable to work are entitled to extra benefits for impairments or permanent partial disability benefits.
The amount of workers’ compensation depends on the severity of the disability and when the injury happened. In most cases, the employee is compensated with an amount equal to the average weekly salary when the accident happened or the latest exposure to the hazard that resulted in the employee’s occupational disease.
Permanent Total Disability Benefits
Some accidents lead to severe injury and illness, leading to permanent and total disability. These include losing both hands, arms, feet, legs, or loss of any two. When an employee obtains any of these disabilities, they will receive two-thirds of their average weekly pay.
However, the payment amount is subject to adjustment based on the annual cost of living. It may be reduced if the worker is also receiving benefits from Social Security Disability.
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