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.
- 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.
Compared to other states including its neighbors, Maryland insurers, including the Injured Workers' Insurance Fund, offer very competitive rates. In fact, Maryland's index of workers' compensation costs for manufacturers is 25 percent below the national average, according to Actuarial and Technical Solutions, Inc.
Source: Maryland Department of Business and Economic Development