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Operating a small business in Maryland comes with many legal requirements, one of which is carrying proper workers’ compensation insurance through the Maryland Workers’ Compensation Commission (WCC). While this mandated coverage may seem complicated at first, understanding the basics of the Maryland WCC can help business owners stay compliant.
What is the Maryland WCC?
The Maryland WCC is the state agency that oversees the workers’ compensation system. This system provides compensation for employees who suffer job-related injuries or illnesses. The WCC manages claims, complaints, and benefits for injured workers. It also enforces compliance with workers’ comp laws for Maryland employers.
Who Needs Coverage?
In Maryland, nearly all private employers with at least one employee must carry workers’ comp insurance. This includes full-time, part-time, seasonal, and temporary workers. Independent contractors may also need coverage in some cases. A few exceptions exist, such as certain farm laborers and domestic workers.
Employers who fail to carry proper Maryland workers’ compensation insurance can face fines of up to $10,000. Company executives may also be held personally liable. Business owners must thus understand their coverage requirements.
Getting Coverage
Businesses have a few options for securing Maryland workers’ comp insurance. The most common is purchasing a policy through a private insurance carrier. Rates are based on payroll, job type, and claims history. New businesses should carefully calculate their workforce projections when obtaining quotes.
Some employers, such as construction companies, may join a state-authorized rating organization to receive discounted premiums. Businesses can also self-insure if they meet strict financial requirements.
Regardless of how they obtain coverage, employers must register with the Maryland WCC and file appropriate documents. This proves the business carries active workers’ comp insurance.
Managing Claims
When an employee is injured, the employer must promptly file a First Report of Injury with their insurer. This kicks off the claims process through which the worker will receive medical care and wage replacement benefits.
To contain costs, employers can use medical networks, pharmacy programs, return-to-work initiatives, and fraud prevention resources. But ultimately, the Maryland WCC oversees claims to ensure timely payments and necessary treatments.
Understanding Dispute Resolution
Disagreements occasionally arise in claims between workers, employers, and insurers. The WCC provides an administrative dispute resolution process to settle these issues without going to court.
If a dispute can’t be resolved informally, parties can request mediation, settlement conferences, or commission hearings. The WCC then makes a ruling to resolve the dispute. While legal representation is not required, retaining an attorney familiar with the system may be beneficial.
Meeting Requirements
Staying current on Maryland WCC laws, using compliant insurance policies, and properly initiating claims are critical for businesses. While managing workers’ compensation can be complex, taking the time to understand key requirements helps protect companies from major fines and lawsuits. Partnering with an experienced insurance agent or attorney also provides useful guidance.
Complying with the Maryland WCC: Takeaways
With the right insurance coverage courtesy of specialists like EMPLOYERS and practices in place, small business owners can feel confident they are meeting their obligations under Maryland’s workers’ compensation system. This ensures their most valuable assets – their employees – are protected if a workplace injury occurs.
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