Sources reviewed October 27, 2026 · Confirm current rules with the agency
When coverage is required
Maryland employers must carry workers' comp for covered employees, with some exceptions and opt-outs. You pay the cost. Before you decide someone falls outside the law, check with the Workers' Compensation Commission or a licensed agent. A general business insurance policy does not count as workers' comp.
Owners, contractors, and exceptions
Working owners, family members, and independent contractors each need their own review. Ask who the policy covers and whether an owner must opt out in writing. If your business works in Maryland, D.C., and Virginia, tell your agent about each location and the work done there. A policy for one place may not meet the rules in the others.
If an employee is injured
Workers should report injuries quickly. Maryland says you must file a First Report of Injury within ten days of learning about it when the worker is out more than three days. Your insurer and the Commission get this information. Your report is not the worker's claim for benefits. Give the worker your insurer's details, and point them to the Commission's claim instructions if they are unsure what to file.
Operating without coverage
The Workers' Compensation Commission can fine an employer that does not follow an order to get insurance. A 2024 law raised the top fine to $25,000. If an uninsured employer does not pay a valid claim, the Uninsured Employers' Fund pays the worker's benefits and medical bills. The employer then owes the fund the full amount, plus penalties and fees.
How to arrange coverage
Buy a policy from a licensed insurer or get approval to self-insure. Set up a reporting process that includes wage history and missed work dates, not just a short note about the accident. The Commission's guides for employers and workers explain who does what. Keep copies handy so everyone knows which forms still need to be filed.
Benefits and return-to-work planning
A work injury can lead to medical care, time off work, a lasting disability, or benefits for family members if a worker dies. Who qualifies, waiting periods, how wages are figured, and benefit limits all depend on state law and the facts of the claim. Ask your insurer which benefits it is looking at and what records it needs. Go by the doctor's work limits, not your own guess about what the worker can do. If you can offer lighter work, describe the duties and hours clearly and plan it with the doctor and your insurer.
Preparing an accurate cost estimate
Gather payroll by job and location, a description of each type of work, details on working owners, subcontractor records, and your past claims. Ask the insurer to confirm your job classes, how the rate is figured, any experience modifier, the minimum premium, fees, and audit terms. This site's calculator uses a base rate that you enter. It does not give a state-approved rate or a real quote. Compare offers using the same numbers, and track staff and work changes during the year so the final audit is easier.
Forms, posters, and notices
These links go straight to Maryland’s official forms. Your insurer can often send a poster with your policy details already filled in.
- Employer questions and answers
Post the Commission's notices at the work site. File a First Report of Injury within 10 days when a disability lasts more than 3 days.
Weekly benefit limits
These limits cap the wage replacement checks an injured worker can get. Medical care is paid separately. Limits change every year, so check the source for the latest figures.
- Minimum
- $50 a week
- Waiting period
- The first 3 days are not paid unless the disability lasts more than 14 days.
The maximum equals the state average weekly wage and changes each year. The Commission posts it on its compensation rates page.
Check a contractor’s coverage
The agency does not offer a public coverage search we could confirm. Ask the contractor for a certificate of insurance, then call the insurer listed on it to confirm the policy is active and covers this state.
Owner exemptions and elections
Corporate officers in charge of the business can be fined personally up to $10,000 if required coverage is not in place. Owner choices are usually made through your insurance policy. Ask your insurer which owners are included or left out, and get the answer in writing.
Frequently asked questions
Is workers' comp required in Maryland?
Yes for employers with covered employees, subject to limited exemptions and opt-out choices.
Do business owners need workers' comp in Maryland?
Working owners, family members, and contractors need individual review. Ask whether an owner choice must be documented with the insurer.
How long does an employee have to report a work injury in Maryland?
Employees should report quickly. The employer files a First Report of Injury within ten days of notice when disability lasts more than three days.
What happens if a Maryland business doesn't have workers' comp?
The Commission can fine an employer up to $25,000 for failing to get required coverage. The Uninsured Employers' Fund pays valid claims and recovers the full amount from the employer.
How do I get workers' comp insurance in Maryland?
Buy from a licensed insurer or get approval to self-insure.
How much does workers' comp cost in Maryland?
Cost depends mostly on your job class codes, the payroll in each class, your experience modifier, and the insurer's rates and minimum premium. Ask a licensed insurer or agent for the base rate for your class code in Maryland, then use this site's calculator for a rough estimate. Your final premium is set at the yearly audit.
Your next steps
Official sources & further reading
Maryland WCC: employer questions and answersMaryland WCC: worker questions and answersMaryland: Uninsured Employers' Fund budget analysis (penalty and recovery)This summary is for learning, not legal advice. Exceptions and changes may apply. If anything here differs from the official agency or the law, they are what count.