What Happens if My Employer Does Not Have Workers’ Compensation Insurance in Maryland?
October 2, 2026
Key Takeaways
- Almost every Maryland employer must carry Workers’ Compensation insurance.
- An injured worker can file a compensation claim or bring a lawsuit against an uninsured employer.
- In a lawsuit, the uninsured employer loses several common defenses.
- The Uninsured Employers’ Fund may cover benefits when an employer fails to pay.
When an employer has no workers’ comp insurance in Maryland, the missing coverage is the employer’s legal violation, not the worker’s problem. An injured worker can still pursue payment for medical care and lost wages. In some cases, the worker may even recover more than a standard claim would provide, including damages for pain and suffering.
What Options Does an Injured Worker Have?
Maryland law requires nearly all employers to carry Workers’ Compensation coverage. In exchange, insured employers are usually shielded from lawsuits by injured workers. An employer that skips coverage gives up that protection.
Under Section 9-509 of the Labor and Employment Article, a worker hurt while working for an uninsured employer may choose one of two paths. The first is a claim for Workers’ Compensation benefits. The second is a civil lawsuit for damages against the employer.
The lawsuit option can carry real advantages. Maryland follows strict contributory negligence rules in most injury cases, but those rules change here. An uninsured employer may not argue that:
- The worker assumed the risks that came with the job
- The worker was partly at fault for the injury
- A coworker’s carelessness caused the harm
A lawsuit may also allow recovery for pain and suffering, which Workers’ Compensation does not cover. However, a lawsuit takes more time and requires proof that the employer was negligent. Choosing the right path depends on the facts of each case.
How Does the Uninsured Employers’ Fund Work?
Many injured workers prefer the compensation route because it does not require proof of fault. The problem is that an uninsured employer may not have the money to pay an award. Maryland created the Uninsured Employers’ Fund to address this gap.
The process generally starts like any other claim. The worker files with the Maryland Workers’ Compensation Commission, and the Commission decides whether the injury is covered. If the Commission awards benefits and the uninsured employer fails to pay, the fund may step in. The Commission can also confirm whether the employer had any coverage on the date of the injury.
Benefits available through a claim may include:
- Payment for medical treatment related to the injury
- Temporary total disability payments while the worker cannot work
- Permanent disability benefits for lasting impairment
- Vocational rehabilitation in some cases
The fund then seeks repayment from the employer. Uninsured employers can also face penalties and possible criminal charges for failing to carry coverage. These consequences fall on the employer, not the worker.
What Steps Should an Injured Worker Take?
A worker who suspects an employer lacks coverage should act quickly. Early action helps protect benefits and preserves important evidence.
Helpful steps include:
- Reporting the injury to a supervisor in writing as soon as possible
- Getting medical care and keeping all treatment records
- Asking the employer for the name of its insurance carrier
- Saving pay stubs, schedules, and texts that prove the work relationship
Some workers discover another source of coverage. On construction sites and similar projects, a general contractor may be responsible for injuries to workers hired by an uninsured subcontractor. A careful review of the job structure can reveal this option.
Deadlines also matter. Maryland sets time limits for reporting an injury and filing a claim, and missing them can put benefits at risk. A lawsuit against the employer carries its own separate filing deadline.
Frequently Asked Questions
Can an uninsured employer fire a worker for filing a claim?
No. Maryland law prohibits firing a worker solely for filing a Workers’ Compensation claim.
Do undocumented workers qualify for benefits?
Maryland courts have allowed undocumented workers to receive benefits.
Does a small business still need coverage?
Generally, yes. Even employers with one worker usually must carry insurance.
Maryland Workers’ Compensation Lawyers at LeViness, Tolzman & Hamilton Stand Beside Injured Workers
Workers across Maryland who learn their employer lacks insurance can turn to the Maryland Workers’ Compensation lawyers at LeViness, Tolzman & Hamilton. Our experienced legal team will review your case and discuss available legal options. To discuss a Workers’ Compensation claim, reach out to the firm online or call 800-547-4LAW (4529) to schedule a free consultation. Located in Baltimore and Owings Mills, we serve clients throughout Maryland.
