Key Takeaways
- Maryland requires workers' compensation insurance for employers with ONE or more employees
- Workers' compensation provides no-fault coverage for workplace injuries and is the exclusive remedy
- Commercial General Liability (CGL) protects businesses from third-party bodily injury and property damage claims
- Professional liability insurance covers errors and omissions in professional services
- Umbrella policies provide additional liability coverage above underlying policy limits
Maryland Liability & Workers' Compensation Insurance
Maryland Workers' Compensation
Coverage Requirements
Maryland has one of the broadest workers' compensation requirements in the nation:
| Requirement | Details |
|---|---|
| Threshold | 1 or more employees (virtually all employers) |
| Exemptions | Limited - agricultural workers, some domestic workers |
| Coverage Type | No-fault system |
| Exclusive Remedy | Employees cannot sue employer for work injuries |
Required Benefits
Workers' compensation in Maryland provides:
| Benefit Type | Coverage |
|---|---|
| Medical Benefits | All reasonable and necessary treatment |
| Temporary Total Disability | 2/3 of average weekly wage (AWW) |
| Temporary Partial Disability | 50% of wage loss |
| Permanent Partial Disability | Scheduled benefits based on body part |
| Permanent Total Disability | 2/3 AWW for life |
| Death Benefits | Surviving spouse and dependents |
| Vocational Rehabilitation | Training and job placement assistance |
Benefit Limits
Maryland sets maximum weekly benefit amounts:
- Maximum weekly benefit tied to State Average Weekly Wage (SAWW)
- Benefits adjusted annually
- No minimum waiting period for medical benefits
- 3-day waiting period for wage loss benefits (waived if disability exceeds 14 days)
Workers' Compensation Commission
The Maryland Workers' Compensation Commission oversees the system:
- Adjudicates disputed claims
- Approves settlements
- Monitors employer compliance
- Maintains injury statistics
Commercial General Liability (CGL)
Coverage Components
| Coverage | What It Covers |
|---|---|
| Coverage A - Bodily Injury & Property Damage | Third-party injuries and damage to others' property |
| Coverage B - Personal & Advertising Injury | Libel, slander, false advertising, wrongful eviction |
| Coverage C - Medical Payments | Small medical expenses regardless of fault |
CGL Coverage Triggers
| Trigger | When Coverage Applies |
|---|---|
| Occurrence | Policy in effect when injury/damage occurs |
| Claims-Made | Policy in effect when claim is reported |
Typical CGL Limits
| Limit Type | Common Amount |
|---|---|
| Per Occurrence | $1,000,000 |
| General Aggregate | $2,000,000 |
| Products/Completed Ops Aggregate | $2,000,000 |
| Personal & Advertising Injury | $1,000,000 |
| Medical Payments | $5,000 - $10,000 |
| Damage to Rented Premises | $100,000 - $300,000 |
Professional Liability Insurance
Errors and Omissions (E&O) Coverage
Professional liability protects against claims of:
- Negligent acts in professional services
- Errors or mistakes in work product
- Failure to perform professional duties
- Misrepresentation or bad advice
Professionals Requiring E&O
- Insurance producers and agents
- Real estate professionals
- Attorneys and accountants
- Healthcare providers
- Financial advisors
- Architects and engineers
Claims-Made Policies
Most professional liability uses claims-made coverage:
| Feature | Explanation |
|---|---|
| Retroactive Date | Coverage only for acts after this date |
| Reporting Period | Claim must be reported during policy period |
| Extended Reporting | "Tail" coverage for claims after policy ends |
| Prior Acts Coverage | May cover acts before policy inception |
Umbrella and Excess Liability
Purpose of Umbrella Policies
Umbrella liability provides:
- Additional limits above underlying policies
- Broader coverage than underlying policies
- Drop-down coverage for gaps in underlying coverage
- Higher limits for catastrophic losses
Underlying Insurance Requirements
Typical umbrella policies require:
| Underlying Policy | Minimum Limit |
|---|---|
| Auto Liability | $250,000/$500,000 |
| Homeowners | $300,000 |
| CGL | $1,000,000 |
Exam Tip: Maryland requires workers' compensation for employers with just ONE employee - one of the lowest thresholds in the nation. Workers' comp is the exclusive remedy, meaning employees typically cannot sue their employer for workplace injuries.
How many employees must a Maryland employer have before workers' compensation insurance is required?
What does the "exclusive remedy" doctrine mean in workers' compensation?
Which type of liability coverage protects a business from claims of negligent professional services?
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