Workers compensation law, rules and policy information for the Maryland

Related Pages: More About Maryland Rules

State: Maryland

Updated: Rating Payroll 02-09-2021

Authority/State Rating Bureau: NCCI, National Council on Compensation Insurance. While Maryland is technically a NCCI state, Chesapeake Employers Insurance, formerly known as the Injured Workers Insurance Fund or IWIF, uses the NCCI classification system, however they have their own interpretation of the class assignments. This can differ greatly from NCCI. So be aware there are differences. Also note that Chesapeake does not report payroll and loss information to NCCI.

National Council on Compensation Insurance (NCCI)
901 Peninsula Corporate Circle
Boca Raton, FL 33487-1362

Compulsory: Yes

Private Insurance: Allowed

Self-Insurance: Allowed

State Fund: Chesapeake Employers Insurance the new Injured Workers Insurance Fund which replaced the prior state fund, operates in competition with private insurers in the state. Contact at: Chesapeake Employers Insurance

Assigned Risk: Chesapeake Employers Insurance

Assigned Risk Contact Information: Chesapeake Employers Insurance, formerly known as the Injured Workers Insurance Fund, also operates the assigned risk plan. Contact at: Chesapeake Employers Insurance

Numerical Exceptions: None

Individual Waivers Allowed: Yes

Small Deductible Program Details:
Allowed: Yes – However it is optional that insurance carriers make available
Deductible Range: $500 – $2,500
Type: Medical and Indemnity
Effect on Experience Rating: Gross
Available In: Voluntary Markets
For More Information About How Deductible Programs Work

Sole Proprietor: Excluded from coverage/may elect to be included – must complete Maryland’s Sole Proprietor Status as a Covered Employee Form. If included Sole Proprietors are rated on $48,900 per year as of 1-1-2012, $50,200 as of 1-1-2013, $51,500 as of 1-1-2014. $51,900 as of 1-1-2015. $52,300 as of 1-1-2016. $53,400 as of 1-1-2017. $54,700 as of 1-1-2018. $56,900 as of 1-1-2019. $58,000 as of 1-1-2020. $56,200 as of 1-1-2021.

Partners: Excluded from coverage/may elect to be included. If included the rating payroll used is $48,900 per year as of 1-1-2012, $50,200 as of 1-1-2013, $51,500 as of 1-1-2014. $51,900 as of 1-1-2015. $52,300 as of 1-1-2016. $53,400 as of 1-1-2017. $54,700 as of 1-1-2018. $56,900 as of 1-1-2019. $58,000 as of 1-1-2020. $56,200 as of 1-1-2021.

Corporate Officers: Included in coverage/may elect to be exempt. If included the minimum weekly payroll used for rating is $950 and the maximum is $3,800 as of 1-1-2012 and $950 / $3,900 as of 1-1-2013, $1,000 / $4,000 as of 1-1-2014. $1,000 / $4,000 as of 1-1-2015. $1,000 / $4,000 as of 1-1-2016. $1,050 / $4,100 as of 1-1-2017. $1,050 / $4,200 as of 1-1-2018. $1,100 / $4,400 as of 1-1-2019. $1,100 / $4,500 as of 1-1-2020. $1,100 / $4,300 as of 1-1-2021.

LLC Members: Members who provide a service for monetary compensation are statutorily covered. Members statutorily covered and owning 20% or more interest may elect to be exempt. If included the minimum weekly payroll used for rating is $950 and the maximum is $3,800 as of 1-1-2012 and $950 / $3,900 as of 1-1-2013, $1,000 / $4,000 as of 1-1-2014. $1,000 / $4,000 as of 1-1-2015. $1,000 / $4,000 as of 1-1-2016. $1,050 / $4,100 as of 1-1-2017. $1,050 / $4,200 as of 1-1-2018. $1,100 / $4,400 as of 1-1-2019. $1,100 / $4,500 as of 1-1-2020. $1,100 / $4,300 as of 1-1-2021.

Election or Rejection of Coverage Form:  Maryland Coverage Exclusion and Inclusion Forms and Instructions – This link will take you to a Maryland Workers Compensation website page. Once there scroll down where you will find the forms listed under the section titled “Forms Filed with the Division.”

Notes About Forms: Be sure to check with your insurance company for additional forms they may use for exclusion or inclusion of coverage.

Contractors: If you hire a subcontractor who does not have workers’ compensation insurance (or is not deemed to be an independent contractor), you will be assessed premium based on the amounts paid to the subcontractor.

The amounts assessed will not be less than:

  • 50% of the contract price when the contract specifically requires the subcontractor to provide all the material and labor to complete the entire job;
  • 100% of the contract price where labor only is provided; or
  • 331/3% of the contract price where mobile equipment with operators is provided.


If a subcontractor claims to be insured, get an original version of the workers’ compensation certificate of insurance. A written statement from the subcontractor is not adequate proof of coverage. Keep original certificates of insurance (not photocopies) on file as the insurance company will review them during the audit. The insurance company may also request a copy of the subcontractors policy information page to verify actual coverage. Be sure that the period of coverage on the certificate matches the period when the work was performed.

Validating Independent Contractor Status Be careful and make sure you contact your insurance company before you consider a subcontractor an independent contractor. Certain rules pertain as to how a subcontractor acts in certain situations and those who you believe to be an indpendent contractor may actually not be. Uninsured sub contractor compensation will be picked up and included in ratable remuneration in accordance with manual rules.

Special Notes: Coverage for Agriculture: Covers agricultural employees whose employer has 3 or more full-time employees or a yearly payroll for full-time employees of $15,000. Office workers are exempt from coverage. Independent contractors on farms, other than migrant workers, do not have coverage. Owner-operators of large tractor-trailer vehicles are excluded from coverage. Coverage of Domestic Employees: Any domestic worker whose earnings are $750 or more in any calendar quarter from a private household is covered. Domestic servants and their employers jointly may elect for the employee to be covered, even if the individual does not meet the earnings requirement.

Experience Rating Eligibility: Maryland employers will receive an experience modification rate or EMR once they meet one of these triggers:

  • $10,000 in policy premium is generated during the last year or last two years.
  • $5,000 is the average policy premium generated for more than two years.

aryland Workers Compensation Subrogation: Maryland Statute 9-901 to 903 is where you will find information about workers compensation subrogation for the State of Maryland. It’s not exactly easy to view this information online but if you follow these directions you should be able to get to the actual statute. Use the link we provided below to access the Lexis Nexis look up service they provide for Maryland. Once there read and click the I Agree button and you will then be taken to a screen with a list. Scroll down to “Labor and Employment” and hit the “+” to expand the section. Scroll down til you find Title 9 Workers Compensation and expand this section by clicking the “+” the scroll down to Subtitle 9 Liability of Third Parties and click the “+” to expand that section. At this point you can click on and read section 9-901, 9-902 and 9-903. To get started just use this link.

Maryland Statute On Subrogation

Maryland Workers Working In Other States; Other States Workers Working In Maryland, Extraterritorial, Reciprocity and Non-Compliance: If Maryland workers are working temporarily in another state, then workers compensation coverage for that worker is governed by the extraterritorial provisions found in Maryland statutes. When allowed, extraterritorial provisions allow benefits for an injured worker to apply as if the worker was in their primary state. Not all states provide Extraterritorial Provisions. It’s reciprocity that governs coverage for a worker from another state who is working temporarily in Maryland. A certificate must be filed with the Workers Compensation Commission. Compliance of workers compensation laws varies from state to state and it is important for an employer with workers performing duties in other states to be aware of the specific state rules that govern their coverage. We’ve provided the below general information about extraterritorial and reciprocity as a basic guide. Please contact your state authority with your specific questions concerning this topic!

  • Extraterritorial:
    • Provisions: Yes
    • Duration: Not Specified
  • Reciprocity:
    • Allowed: Yes
  • Specific Statute or Reference: Maryland 9-203; Use this link to go to the Maryland statute look up page. From there you need to navigate to “codes” then go to Title 9, Section 203 to view the statute.
  • For More Information Contact: Maryland Workers Compensation Commission shown below.

Regulated By:

Maryland Workers’ Compensation Commission
10 East Baltimore Street
Baltimore, MD 21202-1641
410-864-5100 or 800-492-0479

Workers compensation statute can be found here:Search this site for Maryland Code, Labor and Employment, Title 9 Workers Compensation

Workers Compensation Statute of Maryland

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Information on this page is provided only as a reference. While we strive to mantain accurate information on this site please realize workers compensation laws are complicated and subject to change at any time. No warranty as to the accuracy or completeness of this information is provided or to be implied. You must verify this data before use with the individual governing authority for this state. If you need help with a workers compensation problem or have a specific situation or question please contact our office. Otherwise please consult your states governing authority or an attorney in your state of residency for assistance.

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