NEXT is Maryland’s best workers' compensation insurance provider, scoring 98 out of 100. The company offers reliable customer service, competitive workers' comp rates and an extensive coverage selection. However, The Hartford and biBerk are strong runners-up you should also consider.
Cheapest Workers' Comp Insurance in Maryland
Updated: June 5, 2025
Advertising & Editorial Disclosure
Key Takeaways
NEXT, The Hartford and biBerk are the best cheap workers' comp insurance providers in Maryland.
Workers' compensation coverage costs an average of $846 per year or $74 per month for most small businesses in Maryland.
Workers' comp insurance is required in Maryland for all companies with employees to cover expenses when employees sustain injuries or illnesses related to work.
Best Cheap Workers’ Comp Insurance Companies in Maryland
| Next | 98 | $127 |
| The Hartford | 91 | $266 |
| biBERK | 89 | $323 |
| Pie | 86 | $242 |
| Thimble | 86 | $266 |
| Nationwide | 86 | $369 |
*Rates and scores are for software development businesses with small (five employees), medium (20 employees) and large (100 employees) operations, aggregated for an overall best recommendation.
NEXT: Best Overall
pros
Most affordable rates overall
Great customer service reputation
Smooth quote process
COMPANY HIGHLIGHTS
NEXT provides Maryland's best and most cost-effective workers' compensation insurance solution for businesses, with coverage beginning at $127 per month. The company is committed to customer service excellence, as reflected in its 4.6 out of 5.0 rating from over 1,000 customer reviews. NEXT also prioritizes speed and convenience, allowing customers to instantly access their certificate of insurance.
How Much Is Workers' Comp Insurance in Maryland?
Depending on the size of your Maryland-based business, workers' comp rates range from $846 to $8,053 per year. However, this only represents software development companies. Your rates will vary widely depending on the number of employees, the risk of your industry, the work your employees do individually and your claims history.
| Larger small businesses | $691 | $8,053 |
| Businesses with five or less employees | $74 | $846 |
| Medium-size small businesses | $165 | $1,915 |
Factors That Impact Workers’ Compensation Costs in Maryland
The cost of workers' compensation insurance varies for each business, depending on several factors that influence coverage costs, including business type, location, payroll size and claims history.
Payroll costs
Businesses typically pay workers' compensation rates based on each $100 of payroll. A business with higher payroll costs pays a higher premium than one with lower payroll costs.
Number of employees
Companies with a large number of employees face a higher risk of employee injury, which can increase insurance premiums.
Employee class code
A class code identifies the type of work employees do. This code sets the rate charged for every $100 of payroll. High-risk industries like construction, mining and manufacturing typically have higher rates than lower-risk fields such as consulting, accounting and software development.
Previous claims
A history of workers' compensation claims can increase your premium. According to the U.S. Bureau of Labor Statistics, Maryland reported 42,600 recordable nonfatal cases in private industry in 2023. Nationally, there were 2.6 million recordable nonfatal cases in private industry.
Maryland Workers' Comp Insurance: Buyer's Guide
Navigating business insurance is often a complicated task. We've broken down how to get the best workers' comp coverage, who needs it and what this type of policy covers to guide you.
How to Get the Best Workers' Comp Insurance in Maryland
Below are the best steps to get the best workers' comp policy possible for your organization.
- 1
Learn about required coverages and options
Research your state's regulations first, as requirements and options vary widely. The coverage you need depends on your industry, organization size and claims history. Talk to a business insurance agent about what's right for your company before buying to avoid getting too much or too little workers' comp insurance.
- 2
Research costs and providers
Research average costs and providers for your specific business to determine which companies to get quotes from. Also, consider state-provided options and whether self-insurance is possible in your state.
- 3
Consult similar businesses
Talk to other businesses in your community, especially those similar to yours. Ask about their experiences, needs and coverage choices to help make your decision.
- 4
Compare multiple providers through different means
Get multiple quotes and compare providers on equal terms to find the best deal. Prices vary depending on how you get quotes: by using online comparison sites or by speaking with an agent. Use different methods and contact various companies to gain a balanced view of what's best for your business.
Do You Need Workers’ Compensation Insurance in Maryland?
All businesses in Maryland are required to carry workers’ compensation insurance. Sole proprietors, partners and corporate officers who fully own a corporation can choose to be excluded from this insurance.
WORKERS’ COMP PENALTIES IN MARYLAND
Maryland employers are legally required to maintain workers' compensation insurance coverage. Non-compliance with this mandate can result in significant legal and financial consequences, including:
- Civil Penalties:
- Fine of up to $10,000 for failing to maintain required workers' compensation coverage
- Corporate officers bear personal liability for fines if the company is a corporation
- Fines of up to $5,000 for terminating workers who file claims or failing to secure compensation payments
- Criminal Penalties:
- Up to one year of imprisonment for terminating workers who file claims or failing to secure compensation payments
- Misdemeanor charges for deducting workers' compensation costs from employees' wages
- Financial Liability:
- Company officers may have to pay compensation costs themselves if no coverage exists
- Full responsibility for workplace injury costs and benefits if coverage lapses
What Does Workers’ Compensation Insurance Cover in Maryland?
Workers' compensation insurance provides vital benefits to employees experiencing work-related injuries or illnesses. This coverage usually encompasses medical care, disability benefits and lost wages for affected workers, paying out 66% of weekly wages according to Maryland law. This not only safeguards employees but also protects the business against potential legal claims associated with workplace injuries or illnesses.
Best Workers' Compensation Insurance Maryland: Bottom Line
In Maryland, the top three workers' comp insurance providers are NEXT, The Hartford and biBerk. While we recommend these companies, compare rates yourself and talk to similar businesses for the best deal.
Workers' Comp Insurance in Maryland: FAQ
Below are answers to frequently asked questions about Maryland workers' comp insurance from our MoneyGeek experts.
Which company has the best workers’ compensation insurance in Maryland?
In Maryland, NEXT provides the best workers’ compensation insurance, with competitive pricing (around $127 per month) and a low complaint index. However, selecting the best insurance for your needs will depend on various factors, including your industry, the size of your workforce and state requirements.
Does Maryland require businesses to have workers’ compensation insurance?
In Maryland, workers' compensation insurance is required for businesses. However, sole proprietors, partners and corporate officers who hold complete ownership have the option to exempt themselves.
How much does workers’ compensation insurance cost in Maryland?
The average monthly cost for workers' compensation insurance for a medium-sized business in Maryland is around $165.
How We Rated Workers' Comp Insurance Companies in Maryland
MoneyGeek calculated workers' compensation insurance rates using a software development business with five, 20 and 100 employees to represent various organization sizes.
Our scoring methodology included:
- Affordability (60%): Overall cost compared to other providers and different business profiles
- Customer experience (30%): Ratings from actual customers, J.D. Power studies, AM Best financial stability ratings and our team's experience with quote processes
- Coverage (10%): Additional options beyond standard offerings and breadth of industries served
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.
sources
- Chesapeake Employers Insurance. "Home." Accessed June 5, 2025.
- NEXT. "Customer Reviews." Accessed June 5, 2025.
- U.S. Bureau of Labor Statistics. "Employer-Reported Workplace Injuries and Illnesses in Maryland — 2023." Accessed June 5, 2025.
- U.S. Bureau of Labor Statistics. "Employer-Reported Workplace Injuries and Illnesses – 2023." Accessed June 5, 2025.