Workers’ Compensation Insurance in Maryland

Protect Your Employees — and Your Business

Workers’ compensation insurance provides essential protection when employees are injured or become ill due to their job. It helps cover medical expenses and a portion of lost wages for injured workers, while also protecting employers from many employee lawsuits related to workplace injuries. In Maryland, most businesses are required by law to carry workers’ compensation insurance as soon as they have employees — making proper coverage both a legal obligation and a smart business decision.

What Does Workers’ Compensation Cover?

Medical Expenses

Covers doctor visits, hospital care, prescriptions, physical therapy, and rehabilitation related to a work-related injury or illness.

Lost Wages & Disability Benefits

Provides partial wage replacement if an employee is unable to work temporarily or permanently due to a covered injury.

Rehabilitation Services

Supports recovery through physical therapy, occupational therapy, and return-to-work programs.

Death Benefits

Provides financial support to dependents if an employee dies as a result of a work-related injury or illness.

Employer’s Liability Protection

Helps protect employers if an employee sues outside of the workers’ compensation system, where applicable.

Maryland Workers’ Compensation Requirements

In Maryland, most businesses with one or more employees are required to carry workers’ compensation insurance, with limited exceptions. This includes full-time, part-time, and often seasonal employees. Failure to maintain proper coverage can result in fines, penalties, and exposure to costly lawsuits.


Our team helps ensure your business meets state requirements while securing coverage that fits your workforce and industry.

Person in blue jumpsuit operates a metal press machine, wearing safety glasses and gloves in a factory.

What Affects Workers’ Comp Costs?

Workers’ compensation premiums are based on several factors — not just the size of your business.

Common cost factors include:



  • Number of employees
  • Total payroll
  • Job classifications (low-risk vs. high-risk roles)
  • Claims history
  • Safety practices and workplace controls

Proper classification and proactive safety planning can help manage costs. We work with business owners to ensure accuracy and identify opportunities to reduce premiums where possible.

Common Questions About Workers’ Compensation Insurance

  • Do I need workers’ comp insurance in Maryland?

    Yes — most Maryland businesses are required to carry workers’ compensation insurance once they have employees.

  • What does workers’ comp cover for employees?

    It covers medical care, partial wage replacement, rehabilitation, and death benefits for work-related injuries or illnesses.

  • How is workers’ comp insurance priced?

    Premiums are typically based on payroll, employee job classifications, and claims history.

  • Does workers’ comp cover independent contractors?

    It depends — misclassification can create risk. We help review worker status to ensure compliance.

  • Can workers’ comp help protect my business from lawsuits?

    Yes — workers’ compensation generally limits employee lawsuits in exchange for guaranteed benefits.