Frequently Asked Workers' Compensation Insurance Policy Questions

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Q: Are you paying for an injured worker’s medical treatment out of pocket rather than reporting the injury to Chesapeake Employers?

A: If so, you and your injured worker miss out on the advantages that reporting provides, including medical networks for quality treatment, lower payment arrangements, and experienced claims adjusting, By paying the injured worker out of pocket, you also may be considered the “primary payer” under federal Medicare law, requiring you to report information about the injury, on multiple occasions, to the Center for Medicare Services or face financial penalties.  Reporting a claim promptly to Chesapeake Employers ensures that we are the primary payer for purposes of Medicare reporting.  For more information on Medicare reporting requirements, see

Q: What is workers’ compensation insurance and why do employers need it?

A: Workers’ compensation insurance is a no-fault benefits system.  Employers who obtain workers’ compensation insurance are protected against liability arising under the Maryland workers’ compensation law.  For employers who have workers’ compensation coverage with us, Chesapeake Employers will provide benefits to injured workers as allowed under Maryland’s workers’ compensation law. These benefits may include medical care, physical and vocational rehabilitation, medical equipment, and payment for lost wages and permanent disability.
Employers are required by Maryland law to either obtain workers’ compensation insurance from a licensed insurance company, like Chesapeake Employers’ Insurance Company, or be approved as a self-insurer.

Q: Do all Maryland employers need to purchase workers’ compensation coverage?

A: All employers in the State of Maryland with at least one part time or full time “covered employee” must obtain coverage.  Please see the Labor and Employment Article of the Maryland Annotated Code for more information on who is a “covered employee” under Maryland law.

Q: How do I obtain a policy?

A: Obtaining workers’ compensation insurance with Chesapeake Employers’ Insurance Company is fast and easy. Maryland businesses may place their coverage with us either by using the professional services of an insurance agent or by dealing directly with us to obtain a quote and coverage. Whether or not you choose to work with an agent, your premium is the same. There is no additional cost for using the services of an agent.

Q: What does my policy include?

A: Every Chesapeake Employers’ policy includes services to help you maximize your coverage.  They include:

  • Safety services and safety materials for the workplace

  • Fraud prevention and investigation

  • Legal services for claims

  • Responsive injury reporting

  • Expert claims services

  • Convenient online eServices

Q: What information do I need to provide in order to get a quote?

A: You must provide the following information:

  • Business name

  • Details of your business operation

  • Federal ID number

  • Social Security numbers of owners/officers

  • Prior loss history

  • Total payroll

  • Number of employees; and

  • Prior coverage

Before a workers’ compensation insurance policy can be issued, a Chesapeake Employers’ underwriter must first evaluate your business operation (“the risk”).  At Chesapeake Employers, our underwriting professionals possess strong technical business knowledge to accurately identify exposures, appropriately classify risks, investigate prior loss experiences, and ensure the appropriate pricing for each risk.

Q: Can company officers or employees exclude themselves from coverage?

A: Maryland law permits certain officers of close corporations, members of an LLC or P.A., or up to five officers of other corporate entities, to file a formal election to exclude themselves from workers’ compensation coverage. Please see Section 9-206 of the Labor and Employment Article of the Maryland Annotated Code for specific information on this topic.  Sole proprietors and partners are automatically excluded from coverage and must elect to include themselves.

Q: What is employers' liability?

A: This coverage protects an employer in those cases in which an employee files suit against the employer in lieu of accepting workers’ compensation insurance benefits.

Q: How does Chesapeake Employers calculate my premium?

A: Your premium is calculated by assigning a business classification code (or combination of codes) that best describes your operations. Each code represents a rate per $100 of payroll that is multiplied by your total estimated annual payroll for that code. Other factors may affect the calculation, such as your business’s safety practices and experience modification.

Q: What is an experience modification?

A: An experience modification, or “e-mod,” allows for an adjustment to your premium rate.  It reflects your claims history compared to other business in your classification.  A good loss history will decrease your premium.  A poor loss history will increase your premium.

Q: What is "Other States" Coverage and when do I need it?

A: Coverage for Maryland employees working in other states on an incidental basis is provided under your basic Chesapeake Employers policy. Employees assigned for extended periods of time or permanently located in another state require a separate policy. For your coverage needs in these situations, Chesapeake Employers has teamed with Zurich North America to provide an insurance solution in all U.S. states except North Dakota, Ohio, Washington, Wyoming, U.S. Virgin Islands and Puerto Rico.

If you need Other States Coverage, please contact a Chesapeake Employers underwriter or your insurance agent.

Q: Who do I contact if I have questions about my bill?

A: Our Customer Services Center is available to explain your bill, provide the balance owed, and help you with any other billing question you may have

Q: We previously had coverage with your company but had to drop it due to financial issues. When we re-apply, can we re-activate the previous policy or do we start over again?

A: If the old policy has been cancelled for less than a year, we can rewrite the policy utilizing the prior policy number.  The policy will be rewritten for a term of 12 months and an annual premium will be charged.  We also offer payment plans, which must be approved by an underwriter.

For additional employer information, visit the Policy Information section and the Maryland Workers' Compensation Commission's website.

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Chesapeake Employers' Insurance Company •  Formerly the Injured Workers' Insurance Fund • 8722 Loch Raven Blvd. • Towson, MD 21286   410-494-2000  1-800-264-4943   Privacy Policy and Data Security