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Carrier Not Entitled to Punitive Damages Over Underreported Payroll

Monday, January 12, 2026 | 0

The Appellate Court of Maryland affirmed a circuit ruling holding that Chesapeake Employers' Insurance Co. failed to prove it was entitled to punitive damages from an employer that underreported payroll. Case: Chesapeake Employers' Insurance Co. v. SCD Premier Staffing Agency et al., No. 1840, 01/06/2026, unpublished. Facts: Chesapeake Employers Insurance Co. in 2021 wrote a workers' compensation policy for SCD Premier Staffing and assessed an annual premium of $2,944, based on the company reporting 30 workers and a total payroll of $100,000. After a subsequent audit identified ...

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