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Workers’ Compensation Insurance: Ensuring Employer Compliance in Maryland

Aug 25, 2023

With few exceptions, every employer in the State of Maryland with one or more employees is required by law to provide workers’ compensation coverage for their employees.

However, a report recently released by the Office of Legislative Audits indicated that more than 1,600 businesses in Maryland appeared to not be carrying current workers’ compensation insurance, a violation that brings a penalty of up to $10,000.

As a result, the Maryland Workers’ Compensation Commission has indicated it will be reviewing the businesses identified in the report, working to determine if coverage was required and assessing fines if the required coverage was not in place.

 How does an employer comply with the workers’ compensation law?

Employers in the State of Maryland are required to obtain workers’ compensation insurance from any insurance company licensed to write workers’ compensation insurance in the State of Maryland, including the Chesapeake Employers’ Insurance Company, Maryland’s insurer of guaranteed market. Large employers (net worth of $10 million or greater) may also apply to be a self-insured employer, which requires prior approval of the Workers’ Compensation Commission.

We encourage you to review the status of your workers’ compensation requirements and coverages.

To ensure your organization’s adherence to Maryland’s workers’ compensation laws and avoid hefty fines, we strongly urge you to review the status of your workers’ compensation requirements and coverages. By doing so, you can proactively confirm your compliance and safeguard your business against potential penalties.

For more information on Maryland’s Workers’ Compensation Law, please visit where you will find a helpful FAQ for Employers.