The workers' compensation policy is covered in the national workers' compensation guide: statutory benefits, employers liability, and premium based on payroll. Maryland's workers' compensation law is Title 9 of the Labor and Employment Article (Lab. & Empl.). Claims are heard by the State Workers' Compensation Commission, an independent state unit (§ 9-301). Its 10 members are appointed by the Governor with Senate consent, serve 12-year terms, and must be Maryland lawyers (§ 9-302). Coverage is sold competitively by private insurers, with a nonprofit insurer of last resort.

Who is covered

• The law applies to every employer with at least one covered employee (§ 9-201).
• Anyone working under a contract of hire, including a minor, is presumed to be a covered employee unless the employer proves they are an independent contractor or specifically exempt (§ 9-202).
• Accidental personal injury means an accidental injury arising out of and in the course of employment. It includes certain third-party assaults and resulting occupational disease (§ 9-101(b)).
• Employers are liable regardless of fault (§ 9-501(b)).

Exclusive remedy (§ 9-509)

• Compensation is the employer's exclusive liability for the injury.
• If the employer failed to secure compensation, the employee may claim compensation or sue for damages, and the employer loses defenses such as assumption of risk.

How employers secure coverage (§§ 9-402 to 9-405)

Employers may secure coverage in three ways:

• insure with an authorized insurer
• join an approved self-insurance group
• self-insure individually, after satisfying the Commission of their ability to pay

Chesapeake Employers' Insurance Company (Ins. §§ 24-303, 24-306):

• the successor to the Injured Workers' Insurance Fund, since October 1, 2013
• a private, nonprofit, nonstock corporation regulated like other insurers
• the insurer of last resort, so it may refuse or cancel only for:
  • nonpayment
  • failure to provide payroll information
  • failure to cooperate in a payroll audit
  • failure to reimburse deductibles

Uninsured employers:

• The Commission orders an employer that failed to secure coverage to a show-cause hearing (§ 9-407).
• If such an employer defaults on an award, the Uninsured Employers' Fund pays it (§§ 9-1001, 9-1002).

Benefits

Notice and claims (§§ 9-704, 9-709, 9-711)

• The employee gives the employer notice within 10 days of an injury, or within 30 days after a death.
• A claim should be filed with the Commission within 60 days. It is completely barred if not filed within 2 years.
• Occupational disease claims are filed within 2 years of disablement or of learning it was work-related. Pulmonary dust disease gets 3 years.

Insurance rules

• Workers' comp is exempt from the Insurance Article's unfair claim settlement subtitle (Ins. § 27-302).
• Underwriting-period cancellation. A new workers' comp policy cancelled during the 45-day underwriting period needs 15 days' notice stating the reason, or 10 for nonpayment. A copy is filed with the Commission's designee (COMAR 31.08.15.06).
• Renewal increases. A commercial or workers' comp renewal increase of more than 15% needs 45 days' notice (Ins. § 27-608).
• Insolvency. The Property and Casualty Insurance Guaranty Corporation pays covered workers' comp claims in full (Ins. § 9-306).

Common exam traps

• Claims go to the Workers' Compensation Commission, not the MIA.
• One employee triggers coverage.
• TTD is two-thirds of wages, capped at the state average weekly wage.
• The waiting period is 3 days. It is paid back if disability lasts more than 14 days.
• Notice to the employer is due in 10 days. A claim is barred after 2 years.
• Chesapeake Employers' is a private nonprofit insurer of last resort, not a state fund.