Where to Purchase Workers Compensation Insurance in Maryland

Where Maryland Employers Can Buy Workers Compensation Insurance

In Maryland, most employers with one or more employees are required to carry workers compensation insurance. You can satisfy this requirement through the Maryland Workers Compensation Commission (MWCC), private insurers licensed in the state, or the assigned-risk market. The right choice depends on your industry, payroll size, and claims history.

Maryland Workers Compensation Commission (State Fund)

The MWCC operates a state insurance fund that accepts applications from employers who cannot place coverage in the voluntary market. To apply, you file Form WC-1 with the Commission and provide payroll and classification details. The state fund acts as a insurer of last resort, so it is not typically the first option for most employers.

Private Insurance Carriers

The majority of Maryland employers purchase workers compensation from private carriers licensed by the Maryland Insurance Administration. You can compare quotes directly from insurers or work with a broker who operates in the Maryland workers compensation market. Carriers set rates based on your classification code, payroll, and experience modification factor.

Assigned-Risk and Residual Market

If you are unable to obtain coverage from a private insurer, the Assigned Risk Plan administered through the MWCC can place your business with a participating carrier. This is a last-resort mechanism, and premiums tend to be higher than voluntary-market quotes.

Steps to Get Workers Compensation in Maryland

• Verify whether your business is classified as an insured employer under Maryland law.
• Gather payroll records, job classifications, and your federal employer identification number.
• Request quotes from licensed private insurers or use a broker familiar with Maryland workers compensation.
• If denied in the voluntary market, apply through the MWCC assigned-risk process.
• File proof of coverage with the MWCC and post notices as required by Maryland law.

Regulatory Context

The Maryland Insurance Administration oversees private carriers, while the MWCC handles policy administration for the state fund and assigned-risk placements. Penalties for failing to carry workers compensation in Maryland can include fines and liability for employee injuries out of pocket.

Frequently Asked Questions

Do all Maryland employers need workers compensation insurance?

Yes, with limited exceptions for certain agricultural and domestic workers. Check the MWCC guidelines for your specific situation.

Can I purchase workers compensation insurance online in Maryland?

Many private carriers and brokers offer online quoting, but the MWCC application is filed directly with the Commission.