Maryland Workers Comp Insurance: How It Works
Maryland workers' compensation insurance is a state-mandated program that benefits injured employees or those who develop illnesses at work.
This insurance is designed to protect both employers and employees by providing financial support to the injured employee and reducing the risk of costly lawsuits for the employer.
This article discusses how Maryland workers' comp insurance works and what it covers.
Who needs Maryland workers' comp insurance?
All employers must carry workers' compensation insurance in Maryland. Full-time, part-time, seasonal, independent contractors, and subcontractors are all included in this. Partners and sole owners are not obligated to get coverage but may elect to do so.
What does Maryland workers' comp insurance cover?
Maryland workers' compensation insurance covers injuries and illnesses sustained while working. This includes accidents, illnesses caused by overuse or exposure to dangerous substances, and diseases brought on by working conditions, such as asbestos-related lung cancer.
The benefits provided by Maryland workers' compensation insurance include:
Medical Expenses
Maryland workers' comp insurance pays for all necessary medical expenses related to the employee's injury or illness.
Disability Benefits
If the injury or illness prevents an employee from working, workers' compensation insurance provides disability benefits to help cover lost wages. The benefit amount is based on the employee's average weekly pay and the severity of their disability.
Vocational Rehabilitation
Workers' compensation insurance provides vocational rehabilitation for employees who cannot return to their previous job due to injury or illness by helping them learn new skills and find employment in a new field.
Death Benefits
Workers' compensation insurance provides death benefits to their dependents if an employee dies due to a workplace injury or illness.
How to File a Maryland Workers' Comp Claim
Report a work-related injury or illness to your employer immediately. Your employer should provide you with a claim form and instructions on how to file a workers' compensation claim. Complete the claim form and submit it to the Maryland Workers' Compensation Commission. After the commission reviews your claim, you may be required to undergo a medical examination to determine the extent of your injury or illness. If your claim is approved, you will receive benefits according to the insurance program.
How much does Maryland workers' comp insurance cost?
The cost of Maryland workers' comp insurance depends on several factors, including the size of the business, the industry it operates in, and the number of employees it has. So the risk of workplace injuries and illnesses determines the cost of workers' compensation insurance.
The Maryland Workers' Compensation Commission sets Maryland workers' compensation insurance rates based on the classification code for the employer's industry and the employer's payroll. Employers can shop around for insurance coverage, but their rates will be the same regardless of their chosen provider.
Summary
As an employer in Maryland, understanding the requirements for workers' compensation insurance and purchasing coverage from a licensed provider is crucial. Suppose you are an employee injured or developed an illness while on the job; report the incident to your employer as soon as possible and file a workers' compensation claim with the Maryland Workers' Compensation Commission to ensure you receive the benefits you receive are entitled to.
