All employers in Maryland are required to provide workers' compensation coverage for their employees. Workers' compensation may be provided by the employer in one of three ways:
- The employer may insure with any company which is authorized to write this type of coverage in Maryland;
- The employer may insure with the Injured Workers' Insurance Fund (IWIF), which is a self-supporting agency of the State of Maryland; or
- The employer may self-insure. This entails furnishing the Workers' Compensation Commission with proof of the financial ability to pay compensation, plus furnishing the required bond, excess insurance, and a safety plan.
Maryland insurers, including the IWIF, offer very competitive rates when compared to other states. According to Actuarial and Technical Solutions, Inc., which publishes an index of workers compensation costs:
- Maryland ranks tenth lowest among the states for manufacturers, with costs averaging 21 percent below the national average, and
- For office and clerical occupations, workers compensation costs in Maryland rank seventh lowest in the nation, or 38 percent below the average for all the states.
Injured Workers' Insurance Fund Rates
(As of January 1, 2008)
| Business Sector |
Base Rate Per
$100 Payroll*
|
| Instrument Manufacturing |
$1.08
|
| Analytic Chemists, Labs and Testing |
$0.61
|
| Printing |
$2.40
|
| Wholesale/Distribution |
$5.43
|
| Standard Exceptions: |
| Clerical/White Collar |
$0.35
|
| Outside Salesperson |
$0.78
|
| Driver/Helper |
$10.14
|
*Discounted "preferred tier" rates are available for businesses meeting certain criteria. Rates earned in other states by companies relocating to Maryland are not transferable when insurance is to be carried with the IWIF. Private insurance companies, however, permit the transfer of ratings earned in other states.
Source: Injured Workers' Insurance Fund.
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Additional tax data for states and Maryland counties can be found in the Comparisons Tool. |
