Below are common questions about Chesapeake Employers and workers' compensation insurance that many agents ask.
A: Chesapeake Employers accepts the ACORD 130 application. The most current version of the application should be submitted.
A cover letter explaining the submission is also helpful. Completed applications may be sent to Chesapeake Employers by fax (410-494-2480), email (eSAIL@ceiwc.com), or mail (Chesapeake Employers’ Insurance Company, 8722 Loch Raven Blvd., Towson, MD 21286). Note: Applications should be typed, as Chesapeake Employers discourages handwritten forms.
A: Maryland’s workers’ compensation law requires most employers to provide benefits to eligible employees who sustain injuries arising out of and in the course of employment. A workers’ compensation insurance policy provides protection against liability arising under Maryland’s workers’ compensation law.
A: Corporations: All employees are covered. Corporate officers who meet the criteria of Section 9-206 of the Labor and Employment Article are covered. Corporate officers can file a formal election to be excluded from coverage. Partnerships: All employees are covered. Partners are not covered but can formally elect to be covered. Sole Proprietors: All employees are covered. The sole proprietor (owner) is not covered but can formally elect to be covered. Inclusion and exclusion forms can be found at http://www.wcc.state.md.us/Gen_Info/ICR.html
A: Medical benefits, disability benefits, subsequent injury fund benefits, vocational rehabilitation benefits, and death benefits.
A: Please see Section 9-210 of the Labor and Employment Article for information on the requirements for farmers.
A: Chesapeake Employers provides workers’ compensation coverage for all Maryland exposures. Chesapeake Employers can consider coverage for other states exposures.
Coverage for a Maryland-based company with some employees working for extended periods of time or permanently located in another state may require an Other States Coverage policy through Chesapeake Employers.
For your clients’ 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.
Contact your Chesapeake Employers underwriter or territorial account executive to learn how Chesapeake Employers builds the bridges necessary to keep all your Maryland-based business clients covered.
A: Standard employers’ liability limits provided in policies issued by Chesapeake Employers are:
$100,000 bodily injury by accident each accident
$500,000 bodily injury by disease policy limit
$100,000 bodily injury by disease each employee
Limits may be increased to $500,000 or $1,000,000 upon request, for an additional premium.
A: All businesses are assigned a classification(s) based upon the nature of their operations. Chesapeake Employers has developed premium rates (per $100 of gross payroll) for each classification. These rates reflect the hazards of the particular employment.
Premium is determined by multiplying the rate for a business classification by the amount of payroll assigned to that classification. If your client has several classifications, the premium is the sum of the premium for all classifications.
A: Experience rating or experience modification is a factor developed from reported payrolls and losses incurred during prior policy terms. An experience rating factor of less than 1.00 will help decrease premium, while an experience factor greater than 1.00 will increase premium. This factor may be developed by Chesapeake Employers or NCCI, depending on where coverage was provided in prior years. Policies in force for 2 years or longer with total cumulative premium of $3,000 or greater over the rating period may be eligible for a Chesapeake Employers' experience rating. Chesapeake Employers will apply the NCCI experience rating factor for new business, if one exists. Please contact NCCI for its experience rating eligibility for Maryland.
A: Please refer to the Chesapeake Employers' Producer’s Guide (available through the Agent eServices portal) for all payroll limitations.
A: Yes. A number of installment plans are available, depending on the premium size and payment history. A $7 per installment payment fee will be applied. There is no installment fee for a single, annual pay plan.
A: Yes, Chesapeake Employers accepts VISA, MasterCard and the Discover card.
A: Pursuant to Maryland’s workers’ compensation law, the principal contractor is liable for injuries to an uninsured subcontractor and the employees of the subcontractor. Premiums will be charged if a Certificate of Insurance showing proof of workers’ compensation coverage for the period worked is not provided.
A: The Sole Proprietor’s Status as a Covered Employee form is provided by the Maryland Workers’ Compensation Commission (WCC). This form allows an independent contractor operating as a sole proprietor to make a selection as to whether he/she wants to be covered under the Maryland Workers’ Compensation law. Chesapeake Employers reserves the right to assess premium at audit for any independent contractor(s) not properly excluded from coverage by this form.
A: Payroll includes all of the following:
Wages or salaries, total cash for commissions and draws against commission
Bonuses, including stock bonus plans
Extra pay for overtime work, pay for holidays, vacation, and sick time
Payment for piecework
Rental values of an apartment or house provided to an employee based on comparable accommodations
Value of lodging, other than an apartment or house received by an employee as part of his/her pay
Value of meals received as part of pay
Value of store certificates, merchandise, credits, or any other substitute for money received by employees as part of this pay
Authorized salary reductions from employees’ gross pay (i.e., cafeteria plans, retirement plans, etc.)
Davis-Bacon wages or wages from a similar prevailing plan
A: The following records may be requested in order to perform a premium audit:
Individual earnings cards/reports
941’s and Form 940
W-2’s and W-3 forms
Profit and loss statement
Certified payrolls on OCIP/CCIP jobs
Sales journal/cash receipts
Certificates of Insurance for subcontractors
List of clerical employees and job duties
1099s and Form 1096
Job cost records, contracts and invoices
General ledger and check register
Federal income tax return
Maryland quarterly unemployment reports
A description of the business operations
A list of locations
A list of officers and their duties
A: Chesapeake Employers has a fully staffed Special Investigations Unit that investigates fraud, including claimant fraud, premium avoidance fraud, and medical care provider fraud.
Chesapeake Employers has a zero tolerance policy toward fraud. If you would like to report possible fraud, call us at 1-800-268-4372.
A: The Maryland Workers’ Compensation Commission is the regulatory agency that adjudicates all issues under the jurisdiction of the Maryland workers’ compensation law. The Commission will decide:
Initial entitlement to compensation benefits
The necessity and reasonableness of medical treatment
The amount of lost wages to be awarded as a result of the injury
The entitlement to vocational rehabilitation
The entitlement to permanent disability benefits
A: A third-party administrator will provide risk management, loss control, and claims-handling services to non-policyholders, usually self-insured businesses.