workers comp

Workers’ compensation: Not as simple as you might think

Thought Leadership on Property & Casualty/Risk & Insurance Management presented by Commercial Insurance Managers

Maryland is a competitive rating state for workers’ compensation. This means that every insurance company files its own rates based upon its own losses, premiums and payrolls with the Insurance Commissioner for approval. Therefore, every insurer selling work comp in Maryland has different rates by classification. Some will be cheaper and others more expensive.

The coverage legislated in Maryland is fairly comprehensive in the statutory benefits offered. Every insurance company offers the same statutory benefits. Those benefits include unlimited medical without deductibles or co-payments, loss of income, and disability if needed.

Employer liability coverage may appear on the policies issued in Maryland, but in Maryland, employees with a work-related injury are not allowed to sue their employer for negligence or gross negligence. Statutory benefits are the only coverage available.

Some of the injuries not covered by statutory benefits in Maryland include:

  • An incident that arose out of an act of God.
  • Common, one-time illnesses such as influenza or headaches.
  • Condition(s) that existed before an employee was hired or began performing a particular job.
  • Contracting ordinary disease of life.
  • Employee’s horseplay that produces or causes an injury.
  • Employees who suffer a heart attack.
  • Injuries caused by a worker who starts a fight.
  • Injuries from repetitious mental trauma.
  • Injuries suffered during participation in off-duty recreational activity.
  • Injuries suffered when an employee’s conduct violates company policy.
  • Injuries suffered while a worker was committing a serious crime.
  • Injuries suffered while an employee is intoxicated or using illegal drugs.
  • Injuries suffered while an employee was not on the job.
  • Injuries that can be treated with basic first aid, such as cuts or scrapes.
  • Willful attempt to injure oneself or another.

(This is a list of uncovered injuries provided by Kelly Payroll in a newsletter dated August 5, 2016.)

Gordon M Mumpower Jr., CPCU, MBA is President of Commercial Insurance Managers Inc., an independent VOSB insurance agency specializing in B2B products and services including property, liability, automobile, work comp, professional, cyber liability, employment practices liability, directors and officers and employee benefits plans. His telephone number is 410-799-2146 and website is www.businsure.com.

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