Buying workers’ compensation for:


State Fund: Yes (Competitive)

Insurance Coverage Requirements: Workers’ Compensation is compulsory in Maryland. Waivers are not permitted.

Who is Required to Purchase Workers’ Compensation Coverage?

All employers having one or more employees, full or part-time, are required to have for the benefit of their employees. With few exceptions, every employer in the State of Maryland with one or more employees is required by law to provide workers’ compensation coverage for their employees.

Agricultural employees whose employer has 3 or more full-time employees or a yearly payroll for full-time employees of $15,000 Are covered. Office workers in an agricultural business are exempt from coverage. Independent contractors on farms, other than migrant workers, do not have coverage. Owner-operators of large tractor-trailer vehicles are excluded from coverage.

Any domestic worker whose earnings are $750 or more in any calendar quarter from a private household is covered. Domestic servants and their employers jointly may elect for the employee to be covered, even if the individual does not meet the earnings requirement.

Sole Proprietors are not considered a covered employee unless an election is made. A sole proprietor may elect to be a covered employee if the proprietor devotes full time to the business of the proprietorship. An election is not effective until the proprietor submits to the Commission and to the insurer of the proprietor a written notice that names the individual who is to be a covered employee.

Factors that Impact Coverage

  • You are a sole proprietor: In Maryland, you are excluded from coverage but have the option to include yourself if you complete the Maryland’s Sole Proprietor Status as a Covered Employee Form.
  • You are a partner: You are excluded from coverage but have the option to include yourself.
  • You are a corporate officer: You are included in coverage but may elect to be exempt.
  • You are a member of an LLC: If you are compensated for your contributions, Maryland includes you in coverage, but if you own 20% or more interest you have the option to exclude yourself.

Failure to Secure Compensation

Effective 10/1/2010 fines payable increase. The Commission will impose against uninsured employers, an assessment of at least $500 but not exceeding $1,000 and 15% of any award made in the claim, not exceeding $5000 in any one claim.

If the employer is a corporation, the officer of the corporation having the responsibility for the general management of the corporation in the State will be held liable for the fine and imprisonment. The entire cost of workers’ compensation insurance must be borne by the employer. Any employer who deducts any portion of this premium from the wages of his/her employee, entitled to the benefits under this Law, is guilty of a misdemeanor.

Proof of Coverage is Required

All posters or notices prepared and mailed by the Workers’ Compensation Commission that give instruction or information about workers’ compensation shall be posted in a conspicuous place at the work site.

The MD WCC Employers’ Posting Notice is 8.5" X 14" and MUST be printed on 8.5" X 14" (legal size) goldenrod or yellow paper. Laser printer or clear photocopier versions are recommended for printed durability and legibility. Default resolution for this printing is 600 dpi (dots per inch). The statutory requirement is "as provided by the MD WCC", hence reduced size or otherwise altered reproductions from the original/default specifications will not constitute statutory compliance.

Independent Contractors

Mistakenly classifying an employee as an independent contractor can result in significant fines and penalties.

View 20 factors used by the IRS and our independent contractor questionnaire to determine whether you have enough control over a worker to be an employer.

Key Resources

Other Tips

If your insured employs workers in multiple states or your insured’s employees are temporarily working out-of-state, they need to purchase insurance for all the states where their workers are located, according to each state’s laws. Call 1-800-476-2948 and let us walk you through it.

The nature of your insured’s business, number of employees being covered and past coverage and claims are all factors in how much their premium will cost.