Maryland workers comp requirements decide exactly when an employer must carry coverage, who counts toward the threshold, and the penalty for going without. This guide breaks down the Maryland workers comp requirements in plain English. (Injured instead of hiring? See our Maryland settlement and claim guides linked below.) All figures are from Maryland sources, verified as of June 2026.
Maryland at a Glance
| Required at | 1 employee(s) |
| Which workers count | Coverage is triggered by the first employee, and full-time, part-time, and seasonal workers all count; there is no construction-specific carve-out, but agricultural employers are only covered if they have at least 3 full-time employees or an annual payroll of 15000 or more. |
| Who is exempt | Sole proprietors and partners are not counted (excluded by default), LLC members who own 20% or more may elect out, corporate officers may elect out, small agricultural operations (fewer than 3 employees or payroll under 15000) are exempt, and certain domestic/casual labor is excluded; independent contractors do not count. |
| Penalty for going without | Failure to secure required coverage can result in a civil penalty of up to 25000 per violation (raised from 10000 effective July 1, 2024), with corporate officers personally liable; it is also a misdemeanor punishable by a fine up to 10000 and/or imprisonment, and the Commission can order a show-cause hearing. |
| Monopolistic state? | No — private carriers |
In This Maryland Guide:
Is Workers’ Comp Required in Maryland?
Yes, Maryland requires nearly every employer to carry workers’ compensation insurance as soon as it has at least one employee, whether full-time, part-time, or seasonal.
Maryland Workers’ Comp Requirements at a Glance
Here are the exact Maryland workers comp requirements every employer should know:
| Employees that trigger the mandate | 1 |
| Which workers count | Coverage is triggered by the first employee, and full-time, part-time, and seasonal workers all count; there is no construction-specific carve-out, but agricultural employers are only covered if they have at least 3 full-time employees or an annual payroll of 15000 or more. |
| Who is exempt | Sole proprietors and partners are not counted (excluded by default), LLC members who own 20% or more may elect out, corporate officers may elect out, small agricultural operations (fewer than 3 employees or payroll under 15000) are exempt, and certain domestic/casual labor is excluded; independent contractors do not count. |
| Owners & officers | Yes. Sole proprietors are excluded by default but may elect IN; corporate officers and LLC members (owning 20%+ interest) are covered by default but may elect OUT by filing an exclusion request/exclusion form (IC-16) with the Maryland Workers’ Compensation Commission. |
| Penalty for going without | Failure to secure required coverage can result in a civil penalty of up to 25000 per violation (raised from 10000 effective July 1, 2024), with corporate officers personally liable; it is also a misdemeanor punishable by a fine up to 10000 and/or imprisonment, and the Commission can order a show-cause hearing. |
| Monopolistic state? | No — buy from private carriers |
| State fund | Yes, Maryland has a competitive state fund, the Chesapeake Employers’ Insurance Company (formerly the Injured Workers’ Insurance Fund / IWIF). |
How to Get Workers’ Comp Coverage in Maryland
A Maryland employer can buy coverage from any licensed private insurance carrier, from the competitive state fund (Chesapeake Employers’ Insurance Company), or, if unable to obtain coverage in the voluntary market, through the assigned-risk pool administered via NCCI; qualifying employers may also self-insure with Commission approval.
Private market: YES
What Workers’ Comp Covers in Maryland
Workers’ compensation is a no-fault system: an injured employee gets benefits without having to prove the employer did anything wrong, and in exchange gives up the right to sue for most workplace injuries. A typical Maryland policy pays for medical treatment tied to a work injury, part of the wages lost while the worker recovers, longer-term disability benefits if the injury is permanent, and death benefits to a family.
It also includes employers-liability coverage, which protects the business if an injury still leads to a lawsuit.
Employees vs. Independent Contractors in Maryland
The most common way employers get the Maryland workers comp requirements wrong is by assuming a worker is an “independent contractor” who does not count. State agencies look at how the work is actually controlled, not the label on a 1099. If Maryland decides a contractor was really an employee, the business can owe back premiums and penalties as if coverage should have been in place all along.
When you are close to the employee threshold, confirm each worker’s status with your state board before you decide you are exempt.
Other Maryland workers’-comp rules: Employers/insurers must begin paying or formally contest a claim within set timeframes, and late payments can incur additional penalties of 20 to 40 percent; the 2026 state average weekly wage is 1537, which is also the maximum weekly temporary total disability benefit. Always confirm current figures with the Maryland WCC and a licensed attorney.
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Understanding Maryland Workers Comp Requirements
The Maryland workers comp requirements exist so injured employees get care and lost wages without having to sue. For most employers, the Maryland workers comp requirements come down to one number: the employee count that triggers the mandate, shown in the table above. Once you hit that count, Maryland workers comp requirements apply whether you planned for them or not, and the penalty for going without is real.
If any part of the Maryland workers comp requirements is unclear, your state board can confirm the threshold, the exemptions, and how to get covered.
Need to get covered? If you are an employer in Maryland shopping for a policy, our sister site compares small-business insurance, including workers’ comp. Compare business insurance options →
Frequently Asked Questions
Is workers’ comp required in Maryland?
Yes, Maryland requires nearly every employer to carry workers’ compensation insurance as soon as it has at least one employee, whether full-time, part-time, or seasonal.
What is the penalty for not having workers’ comp in Maryland?
Failure to secure required coverage can result in a civil penalty of up to 25000 per violation (raised from 10000 effective July 1, 2024), with corporate officers personally liable; it is also a misdemeanor punishable by a fine up to 10000 and/or imprisonment, and the Commission can order a show-cause hearing.
Who is exempt from Maryland workers’ comp?
Sole proprietors and partners are not counted (excluded by default), LLC members who own 20% or more may elect out, corporate officers may elect out, small agricultural operations (fewer than 3 employees or payroll under 15000) are exempt, and certain domestic/casual labor is excluded; independent contractors do not count.
Official Maryland Sources & Resources
- Maryland Maryland Workers’ Compensation Commission (WCC): https://www.wcc.state.md.us
- Maryland Workers’ Comp Statute: https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gle§ion=9-101
- U.S. Department of Labor — Workers’ Comp: dol.gov
- Insurance Information Institute: iii.org
These Maryland workers comp requirements were last verified against official sources in June 2026. Rules and penalties change — confirm the current figure with your state workers’-comp board or a licensed agent.
More Maryland Workers’ Comp Guides
- Maryland Workers’ Comp Settlements
- How to File a Maryland Workers’ Comp Claim
- Workers’ Comp Guides for All 50 States
Disclaimer: This guide is informational only and is not legal, medical, or financial advice. Workers Comp Explained is an independent educational resource, not a law firm or insurer. Workers’ comp benefits, settlement values, deadlines, and requirements vary by state and by the specific facts of your injury and change over time, and any settlement figures here are illustrative only.
Confirm your rights and any deadline with your state’s workers’ compensation board and a licensed attorney before you act.