[photo, 8722 Loch Raven Blvd., Towson, Maryland] In 1914, the Chesapeake Employers' Insurance Company began as the State Accident Fund, established as part of the State Industrial Accident Commission (Chapter 800, Acts of 1914). The Fund was reorganized as the Commissioners of the State Accident Fund, a separate agency, in 1941 (Chapter 504, Acts of 1941). Formerly under the Commissioner of Personnel, the agency joined the Department of Personnel in 1970 (Chapter 98, Acts of 1970). The Commissioners of the State Accident Fund became an independent agency on July 1, 1988 (Chapter 585, Acts of 1987). In 1990, it was renamed the Injured Workers' Insurance Fund (Chapter 71, Acts of 1990). In October 2013, the Fund converted to a nonprofit, private corporation named Chesapeake Employers' Insurance Company (Chapter 570, Acts of 2012).

8722 Loch Raven Blvd., Towson, Maryland, May 2004. Photo by Diane F. Evartt.

Workers' compensation insurance coverage is provided to Maryland businesses by the Chesapeake Employers' Insurance Company. As required by the Maryland Workers' Compensation Law, employers must carry this insurance to pay claims arising from workplace accidents and injuries to their employees.

For all State employees, the Company also serves as claims administrator for workers' compensation insurance.

The Company functions as a guaranteed market insurer, providing coverage access to any employer who applies, regardless of company size or claims record. Annually, insurance rates are set and approved by the Company's Board. Every five years, rates are reviewed by the Maryland Insurance Administration (Code Insurance Article, sec. 2-205).

A nonprofit Maryland corporation, the Company is self-supporting. It operates solely on premium and investment income. All expenses of the Company are paid out of income from premiums paid and interest earned from investments (Code Insurance Article, secs. 24-301 through 24-312).


The Board for the Chesapeake Employers' Insurance Company manages the business and affairs of the Company.

Today, nine members constitute the Board. They are appointed to five-year terms by the Governor with Senate advice and consent. The Board appoints the Company President (Code Insurance Article, secs. 24-307).

Beginning in 2020, the Governor will continue to appoint two members of the Board. The other seven members will be appointed by the policyholders (Chapter 36, Acts of 2015).


Under the President are two main departments: Administration, and Operations. Reporting directly to the President as well are units for Compliance, Counsel, Human Resources, Internal Audit, and Investments.

Investments began as the Investment Department in 1991. It transferred to the Office of President in 2012.

The Chief Investment Officer manages the Company's investment portfolio which provides income to support its operations. Current assets and reserves total $1.8 billion.


Administration is responsible for the Chief Actuary; Communications and Strategic Planning; Enterprise Risk Management; Finance; Information Systems and Marketing; and the Legal Department.

In 1990, Information Systems originated as the Data Control Department. In 1997, it reformed as Information Systems.

Information Systems integrates the computer systems and information needs for the Fund's departments. For new programs and initiatives, it provides information infrastructure support.


Operations began as Marketing, Strategic Planning, and Business Development in 2005 when Insurance Operations merged with Corporate Services and Strategic Planning. In 2008, it reformed as Insurance Operations, and now is Operations.

Operations oversees seven units: Claims (private), Claims (State), Health Services, Policy and Compliance, Premium Auditing, Strategic Business, and Underwriting and Loss Control. Operations also oversees the Maryland State Employee Risk Management Administration.

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