Maryland workers' compensation rates vary based on industry type, payroll volume and claims history. Below, you'll find a list of workers' compensation rates across various industries, sourced from one of our leading partner carriers.
What factors influence your Workers’ Comp Premium?
Here are the primary factors that can influence your workers’ comp premium for 2024:
Industry
Different types of businesses face different kinds of risks, which affects the cost of workers' compensation insurance.
The National Council on Compensation Insurance (NCCI) assigns each industry a 4-digit class code to help insurance companies figure out their premium rates. The higher the risk associated with your industry, the more expensive the rate for your class code.
Payroll
The total payroll of your business has a direct effect on your workers' compensation premium.
Generally, a larger payroll means you'll need more coverage, which can result in higher premiums. Monitoring your payroll expenses can be essential to manage your workers’ comp premiums.
Experience Modification Rate (EMR)
Your company's history of workplace accidents and claims can impact your premium. A business with higher accident rates will likely have higher workers’ comp premiums.
An Experience Modification Rate, or EMR is used to calculate accident rates and determine the appropriate premium. Companies with lower EMR scores will typically enjoy lower workers’ comp premium rates.
Safety programs and training
A strong commitment to safety can help reduce the likelihood of workplace accidents and injuries.
Implementing safety programs, training employees on safe practices, and creating a safer workplace environment are all factors that can significantly influence your workers’ comp premiums.
By taking these proactive measures, you may be eligible for discounts on premium rates.
Claims history
Your company's previous workers' compensation claims can also affect premium costs.
Businesses with higher claims frequency are considered high risk and may face increased premiums. Strictly tracking, managing, and minimizing claims can help lower your workers’ comp rates.
How to calculate your Workers’ Comp Premium
Using a property management company as an example, let's say you have 2 employees with a total payroll of $90,000. The workers’ comp rate in Maryland for property managers is $2.18 per $100 of payroll.
To calculate your workers’ comp premium, you can use the following formula:
(Annual Employee Payroll / $100) x Industry Rate = Your Estimated Premium)
Start by dividing your total expected gross annual payroll for all employees by $100, and then multiply by your industry rate.
For example, with a total payroll of $90,000, you would divide that by 100, resulting in $900.
Then, multiply this by the Maryland rate for painters, which is $2.18. This calculation would give you an approximate estimate of your workers' comp premium, amounting to $1,962.
Please keep in mind that this estimation does not include taxes and fees, and your claims history could impact the final cost.
Don’t want to do the manual calculation? Get an instant quote and find out what your premium would cost you in Maryland.
Ready to find your ideal workers’ comp coverage?
Simplify your search with expert help. Kickstand provides a streamlined service to match your Maryland business with the best insurance plans for 2024 and beyond. Start an instant quote or call 886-338-8823 today.
Note: The rates listed above have been provided by one of our partner insurance carriers, and were accurate at the time of publishing and for illustrative purposes only and may not reflect actual current rates for workers' compensation insurance in Maryland at this time. Various factors, such as claim history and business experience can affect the rate as well. Business owners should consult with an insurance agent or the NCCI for accurate and up-to-date rate information.
Note: The information provided in this blog is intended for general informational purposes only and is not a substitute for professional legal or insurance advice. Laws and regulations regarding workers' compensation insurance are complex and vary by state and by specific circumstances. Therefore, readers are encouraged to consult with a qualified legal or insurance professional to obtain advice with respect to any particular issue or problem they might have.
Mordechai Kamenetsky, co-founder and lead agent of Kickstand, is recognized as an expert in workers' compensation. He is passionate about helping small businesses manage risks and lower their workers' comp costs. In his articles, he educates readers and clients on the intricacies of workers' comp insurance.
Workers’ compensation coverage is required for businesses with more than a certain number of employees. However, because businesses compare quotes from different insurance companies, getting the right coverage can be a guessing game.
