MoneyGeek found the best provider of workers' compensation insurance in Maryland by assessing insurers based on cost, financial stability, customer service and online quote accessibility. For its exceptional performance in all these areas, we identified The Hartford as the state's best workers' compensation insurance company.
In Maryland, businesses with one or more workers are legally obligated to buy workers' compensation insurance to safeguard themselves from potential financial and legal liabilities. This insurance covers medical expenses, lost wages and potential lawsuits that may arise if an employee becomes ill or injured while on the job.
Best Workers’ Compensation Insurance in Maryland
Best Workers’ Compensation Insurance in Maryland
With an impressive MoneyGeek score of 96 out of 100, The Hartford is the best workers' compensation insurance provider in Maryland. Boasting exceptional ratings for customer satisfaction, financial stability and quote processing, The Hartford outshines our runner-up, Thimble.
On average, workers' compensation insurance from The Hartford is priced at $141 monthly. But this cost may vary depending on your company's unique circumstances.
How was this MoneyGeek score calculated?
- Costs an average of $141 per month
- Highest customer satisfaction score
- A+ AM Best rating
- Quick online quote process
The Hartford provides reliable service and ranks as the best workers comp insurance company in Maryland. According to the National Association of Insurance Commissioners (NAIC), the company maintains an exceptional track record with a remarkably low rate of customer complaints, ensuring policyholders receive unparalleled support and service.
Regarding affordability, The Hartford secures the third spot among six insurers, offering cost-effective plans. The company's esteemed A+ AM Best rating reflects its dedication to fulfilling obligations to policyholders. The Hartford's online quote generation process is fast, only taking one minute and seven seconds on average.
- Offers the cheapest rates at $122 per month
- Get a quote in under 30 seconds
Pie is the most affordable choice for workers' compensation insurance in Maryland. On average, policies from this company come at a monthly cost of $122, but actual rates may vary based on individual factors.
What sets Pie apart is its remarkable speed in providing quotes, as it takes only 27 seconds, making it the fastest among all the companies we analyzed. However, it's important to note that Pie received the highest number of complaints and holds an A- rating for financial stability from AM Best.
- Has an average monthly rate of $137
- Strong AM Best financial stability rating
- Streamlined online quote process
Thimble, previously known as "Verifly" and established in 2016, offers the third-best workers' compensation insurance in Maryland. It is the state's second most affordable insurance provider, with a monthly cost of $137 or an annual payment of $1,520.
Thimble stands out for its prompt online quote generation, typically providing estimates within a minute and a half. However, its customer service doesn't quite match the level of excellence displayed by other companies we have evaluated.
- Costs an average of $173 a month
- Excellent customer service
- A++ AM Best financial stability rating
- Fast quotes processing
biBERK is a reliable choice for businesses seeking workers’ comp insurance in Maryland, thanks to its impressive A++ financial stability rating from AM Best. With a low number of consumer complaints, biBERK demonstrates a solid commitment to customer service.
On average, this insurer takes approximately one minute and 48 seconds to generate a quote, offering a faster process than other providers. However, biBERK does not provide the most competitive rates in Maryland, with monthly premiums averaging $173.
- Costs an average of $167 per month
- Receives fewer complaints compared to other providers
- Offers quote in one minute and 46 seconds
Next offers workers' compensation insurance at an approximate monthly cost of $167, positioning it towards the higher end of the price range. However, Next distinguishes itself through its outstanding customer satisfaction, providing policyholders exceptional service and support.
Additionally, Next stands out for its relatively swift online quote generation process, with an average time of one minute and 46 seconds. However, Next holds an A- rating from AM Best, indicating its financial backing is slightly weaker than other insurers.
- Charges monthly premiums of $203
- A+ financial strength rating from AM Best
- High customer satisfaction score
In our evaluation of Maryland providers, Nationwide offers the highest average monthly premiums, amounting to $203. However, it earned an impressive A+ financial strength rating from AM Best, which underscores its strong financial stability and capacity to meet policyholder obligations.
Moreover, Nationwide takes pride in its exceptional customer satisfaction, with minimal customer complaints reported. Conversely, the quote process may be sluggish, taking just over three minutes on average. Some potential customers may consider this a drawback and opt for insurers with more streamlined online experiences.
Cheapest Workers’ Compensation Insurance in Maryland
Pie carries the cheapest workers' compensation insurance in Maryland, with average monthly rates of $122. For companies with 20 employees and annual payrolls of $1,250,000, Pie offers the best value for their insurance needs. Insurance prices are notably influenced by factors such as the number of employees and payroll.
Pie is ideal for budget-conscious business owners seeking workers' comp insurance while managing limited financial resources. It distinguishes itself as the most cost-effective option, with an annual premium of $1,463, which is $57 cheaper than the next most affordable insurer.
Furthermore, Pie delivers quotes quickly, generating them in just 27 seconds. However, Pie has received the highest number of customer complaints according to NAIC ratings, which is an important aspect to take into account when choosing an insurer.
To determine the most affordable choice, refer to the table below that ranks insurance companies based on their average monthly rates. However, note that other factors may come into play when selecting the optimal option for your business.
Best Workers’ Compensation Insurance for Micro Businesses in Maryland
For companies with five employees, The Hartford offers the best workers' compensation insurance in Maryland at an average monthly rate of $58.
While the number of employees a business has can influence the cost of worker's compensation insurance, payroll expenses are the primary contributing factor. To identify the best option for micro businesses in Maryland (those with fewer than 10 workers), we collected estimates based on a company with a staff of five and annual payroll expenses totaling $312,500.
MoneyGeek highly recommends The Hartford as the preferred choice for workers' compensation insurance for micro businesses in Maryland. It offers rates at $58 per month or $695 annually — the most affordable premium among all the insurance companies we assessed.
Additionally, The Hartford holds an impressive A+ AM Best financial stability rating, indicating the company's financial standing is strong. Moreover, business owners can quickly obtain a quote from The Hartford in just one minute and seven seconds, making it convenient and efficient to compare insurance options.
Best Workers’ Compensation Insurance for Midsize Businesses in Maryland
The Hartford offers the best workers' comp insurance in Maryland for companies with around 100 employees, offering a monthly rate of $600.
In addition to the number of employees, a company's payroll amount is crucial in determining workers' compensation insurance costs. To identify the optimal provider for midsize businesses in Maryland, we gathered estimates based on a business with 100 staff members and a yearly payroll of $6,250,000.
Among four other providers, The Hartford offers the best workers' compensation insurance for medium-sized businesses in Maryland. For companies with 100 employees and an annual payroll of $6,250,000, The Hartford offers a monthly rate of $600 or a yearly cost of $7,195.
Its exceptional customer service, robust financial strength and quick and efficient online quote process stand out. However, it is worth noting that The Hartford ranks as the third most affordable option in the state.
How Much Is Workers’ Compensation Insurance in Maryland?
For businesses in Maryland with 20 employees, the average monthly cost of workers' compensation insurance amounts to $157, slightly more affordable than the national average of $168 per month. Below are our sample policy limits:
- $1 million total policy limit
- $1 million per employee limit
- $1 million per accident limit
The insurance policy offers coverage of up to $1 million for any accident and $1 million for each employee, with a total policy limit of $1 million. However, it's important to note that any additional wages lost or medical costs exceeding the policy limit must be covered separately.
The number of employees and annual payroll are key factors that significantly impact insurance premiums. The chart below illustrates how the cost of workers' compensation insurance in Maryland varies based on the number of people a business employs.
How was this cost calculated?
Factors That Impact Workers’ Compensation Costs in Maryland
The cost of workers' compensation insurance can vary significantly between businesses. Several factors come into play, including the number of workers, payroll expenses, prior claims histories, employee class codes and specific state restrictions.
Insurance companies typically apply a predetermined fee for every $100 of payroll to workers' compensation insurance costs. This rate varies between industries and is determined at the state level. Businesses with above-average payroll costs are likely to face an elevated rate. In 2022, Maryland implemented an average fee of $1.04 for every $100 of payroll, which was comparatively lower than that of most states.
Number of employees
The number of employees you have can significantly impact your insurance costs. A larger workforce may increase the likelihood of employee illnesses or injuries occurring at work. This heightened risk can lead to higher workers' compensation insurance prices in Maryland.
Employee class code
A worker's class code indicates the specific type of job they perform, such as consulting or manufacturing. The cost of workers' compensation insurance, calculated based on each $100 of payroll, is determined by this class code. Rates tend to be higher in sectors with a greater risk of injuries than in those with fewer hazards. Therefore, if you operate in a high-risk sector, it is likely that your rates will be more expensive.
Insurance companies consider prior claims histories when determining premium rates. Businesses with a lengthy record of claims are viewed as higher-risk clients. In Maryland, workers' compensation claims are quite common. According to the U.S. Bureau of Labor Statistics (BLS) data from 2021, there were 45,800 reported nonfatal workplace illnesses and injuries in privately owned enterprises in Maryland. The national average for nonfatal workplace injuries and illnesses in the private sector was 2,607,900 in the same year, as reported by the BLS.
Do You Need Workers’ Compensation Insurance in Maryland?
In Maryland, it's mandatory for businesses to purchase workers' compensation insurance if they hire one or more workers. Employers in Maryland must buy a policy from an insurance company licensed to provide such coverage in the state.
However, certain companies, such as agricultural businesses with fewer than three employees and businesses with less than $15,000 in annual income, are exempt from this requirement.
While exemptions exist, obtaining workers' compensation insurance in Maryland is crucial for ensuring financial security. If you choose not to buy workers' comp insurance, you assume full financial responsibility for any work-related damages. This can result in significant costs and may lead to legal action from the affected employee.
Failure to provide the required workers' comp insurance in Maryland can result in penalties and other adverse consequences, including:
- Employers who fail to buy the required workers' compensation insurance as mandated by law may face a fine of up to $10,000.
- It is considered a misdemeanor for an employer to deduct any portion of the workers' compensation insurance premium from the wages of an employee entitled to receive these benefits.
What Does Workers’ Compensation Insurance Cover in Maryland?
In workers' compensation insurance, it is essential to understand that the employer is the policyholder. Workers' compensation insurance in Maryland typically provides coverage for various costs and benefits related to work-related accidents or illnesses. Here are some of the key areas that are usually covered by it:
- Medical expenses: This includes coverage for medical treatments, doctor visits, hospital admissions and other necessary healthcare services for illnesses or injuries sustained at work.
- Lost wages: Workers' compensation insurance offers wage replacement benefits to compensate employees who cannot work due to a work-related illness or injury.
- Vocational rehabilitation: It can involve funding for work retraining, skill development, job placement assistance and other forms of support to help injured workers regain employment or find suitable alternative employment.
It is important to note that the specifics of workers' compensation coverage may vary depending on the specific insurance plan, the nature of the accident or illness and other relevant variables.
Workers’ Compensation Insurance Resources for Employees in Maryland
The Workers' Compensation Commission manages workers’ comp insurance in Maryland. To submit a claim and receive benefits, you can follow these steps:
- Go to the Employee Claim Form.
- Complete the form either online or by downloading and printing a paper copy.
- Submit directly through the website or mail the completed form to the Workers' Compensation Commission.
- Employers are required to have the claim form readily available for employees at all times.
Please be aware that the process and regulations for making a claim in Maryland may vary depending on the nature of the incident and the type of accident or illness involved.
Frequently Asked Questions About Workers’ Compensation Insurance in Maryland
Before selecting the best workers' compensation insurance in Maryland, it is essential to consider several factors. We have answered some commonly asked questions for your assistance.
- Bureau Of Labor Statistics. "IIF Latest Numbers." Accessed May 29, 2023.
- Bureau Of Labor Statistics. "State Occupational Injuries, Illnesses, and Fatalities." Accessed May 29, 2023.
- Oregon Department of Consumer and Business Services. "Premium Index Rates." Accessed May 29, 2023.
- Thimble. "About Us." Accessed May 29, 2023.
- Workers’ Compensation Commission. "FAQs For Employers About MD Workers' Compensation Law." Accessed May 29, 2023.
- Workers’ Compensation Commission. "Maryland Workers’ Compensation Commission." Accessed May 29, 2023.