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June 9, 2025
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Maryland workers' compensation insurance: Your guide to requirements and getting a policy
If you’re a Maryland employer looking to protect both your business and your team, you’re in the right place. At Beyond, we provide the essential information you need to understand how workers’ compensation works and how to stay compliant.
Workers’ compensation insurance exists to help cover a portion of an employee’s wages if they are injured or become ill as a result of their job and need time off to recover. It’s a safeguard for both employees and employers. For employees, it ensures financial support during recovery. For employers, it reduces legal risk—since employees generally waive the right to sue their employer for work-related injuries when covered under a workers’ comp policy.
In Maryland, nearly every employer with one or more employees – regardless of full- or part-time status – is legally required to carry workers’ compensation insurance.
Exemptions include:
Sole proprietors and business partners
Independent contractors
Agricultural employers with fewer than 3 employees, or with a total annual payroll below $15,000
The Maryland Workers’ Compensation Commission (WCC) oversees and enforces the state’s workers’ comp laws. Its mission is to ensure fair and timely processing of claims from both employees and employers.
The Commission provides:
A streamlined forum to resolve claims
Free forms and guidance for employers
Online access for employees to check the status of their claim
Employers in Maryland can secure workers’ compensation coverage through:
Private insurance carriers
State-administered competitive funds, if the business is considered high-risk
Self-insurance, if the employer has a net worth of at least $1 million and obtains approval from the Workers’ Compensation Commission
Failing to maintain workers’ compensation insurance is a serious offense in Maryland. Employers may face:
Fines of up to $10,000
Personal liability for company officers
Potential criminal charges—it is a misdemeanor to deduct any part of the insurance cost from employee wages
If an accident occurs and the employee misses more than three days of work, the employer must:
Submit a First Report of Injury to the Maryland WCC within 10 days of learning about the incident
Share a copy of the report with their insurance provider
Through Beyond, you can explore helpful guides and tools to stay compliant and support your workforce. Useful links include:
As your business expands—or if you’re just getting started—Beyond also offers payroll tax resources to help you avoid errors and meet Maryland’s withholding requirements.
Workers’ compensation isn’t just a regulatory box to check – it’s a smart business move. It ensures your team is cared for in case of an on-the-job incident and significantly reduces the legal risks your business could face.
For more guidance or to get help setting up your workers’ comp policy, reach out to the team at Beyond.
