Who is Covered by Workers’ Compensation Insurance in MD?
Chapter Two: Who is Covered by Workers’ Comp Insurance in Maryland? Most employers in Maryland are required to carry workers' compensation insurance. However, an employer-employee relationship must exist for an individual to be covered by workers’ compensation insurance. Employees vs. Independent Contractors Workers’ comp does not cover independent contractors. Some employers hire independent contractors or attempt to classify employees as independent contractors to avoid covering workers as employees for workers’ compensation benefits. An individual is typically considered an employee if the employer:
- Dictates the person’s working hours;
- Instructs the person on what to do during working hours;
- Dictates how the job is performed;
- Designates lunch and break times;
- Provides tools and materials to perform job duties;
- Provides benefits such as paid time off, retirement, health insurance, etc.;
- Pays the person by the hour, week, or other definite period;
- Requires work to be performed on employer’s premises; and,
- Pays for business and travel expenses.
- An injury arising during the normal course of employment;
- An injury caused by a negligent or willful act of a third person directed at the employee during the normal course of employment; or,
- An occupational disease or illness arising during the normal course of employment.