Maryland workers compensation requirements decide exactly when you must carry coverage, who counts toward the threshold, and what it costs to skip it. This guide breaks down the Maryland workers compensation requirements in plain English — the employee count that triggers the mandate, who is exempt, the penalty for going without, and how to get covered. All figures are from Maryland sources, verified as of June 2026.
In This Maryland Guide:
Is Workers’ Comp Required in Maryland?
Yes, workers compensation insurance is required in Maryland for all employers with one or more employees, with limited exemptions for certain agricultural and domestic employers
Maryland Workers’ Comp Requirements at a Glance
Here are the exact Maryland workers compensation requirements every employer should know:
| Employees that trigger the mandate | 1 |
| Which workers count | All employees count toward the threshold including full-time, part-time, and seasonal workers; domestic workers count if they earn 1000 or more in a calendar quarter; agricultural employers are exempt if they have fewer than 3 employees OR an annual payroll under 15000 |
| Who is exempt | Sole proprietors, partners in a partnership, independent contractors, LLC members owning 20 percent or more (may elect exclusion), corporate officers owning 20 percent or more (may elect exclusion via IC-16 form), domestic workers earning less than 1000 per calendar quarter, and agricultural employees where the employer has fewer than 3 workers or payroll under 15000 |
| Owners & officers | Corporate officers and LLC members who own at least 20 percent of the business may elect to exclude themselves from coverage by filing an IC-16 Exclusion Request Form with the Maryland Workers Compensation Commission through the CompHub portal; without this form on file they are automatically covered |
| Penalty for going without | Failure to carry required workers compensation is a misdemeanor punishable by fines up to 10000 and imprisonment; civil penalties of up to 25000 per violation (increased from 10000 effective July 1 2024 via Senate Bill 216); corporate officers can be held personally liable; the Uninsured Employers Fund pays injured workers and then pursues the uninsured employer for full reimbursement |
| Monopolistic state? | No — buy from private carriers |
| State fund | Maryland’s former state fund (Injured Workers Insurance Fund, IWIF, established 1914) was privatized on October 1 2013 and is now Chesapeake Employers Insurance Company, a private nonprofit that serves as Maryland’s insurer of last resort and largest workers comp writer in the state |
How to Get Workers’ Comp Coverage in Maryland
Maryland employers can obtain coverage by purchasing a policy from any private insurer licensed in the state, purchasing from Chesapeake Employers Insurance Company (the insurer of last resort), or applying to self-insure with approval from the Maryland Workers Compensation Commission
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. That trade-off is the practical heart of the Maryland workers compensation requirements: the coverage exists to keep one bad injury from sinking both the worker and the business.
Employees vs. Independent Contractors in Maryland
The most common way owners get the Maryland workers compensation 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: Maryland operates an Uninsured Employers Fund under Labor and Employment Article Subtitle 10 that pays benefits to workers injured by uninsured employers and then pursues the employer for reimbursement; Chesapeake Employers Insurance Company (formerly IWIF) is the designated insurer of last resort and must accept any Maryland employer; the 20 percent ownership threshold for IC-16 exclusion filing applies to both corporate officers and LLC members
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Understanding Maryland Workers Compensation Requirements
The Maryland workers compensation requirements exist to make sure injured employees get medical care and lost wages without having to sue. For most owners, the Maryland workers compensation 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 compensation requirements apply whether you planned for them or not, and the penalty for going without is real. If any part of the Maryland workers compensation requirements is unclear for your business, your state workers’-comp board can confirm the threshold, the exemptions, and how to get covered.
Next step: Once you know what your business in Maryland actually needs, comparing quotes from several carriers takes only a few minutes. Many owners do this right after they understand their state and trade requirements.
Frequently Asked Questions
Is workers’ comp required in Maryland?
Yes, workers compensation insurance is required in Maryland for all employers with one or more employees, with limited exemptions for certain agricultural and domestic employers
What is the penalty for not having workers’ comp in Maryland?
Failure to carry required workers compensation is a misdemeanor punishable by fines up to 10000 and imprisonment; civil penalties of up to 25000 per violation (increased from 10000 effective July 1 2024 via Senate Bill 216); corporate officers can be held personally liable; the Uninsured Employers Fund pays injured workers and then pursues the uninsured employer for full reimbursement
Who is exempt from Maryland workers’ comp?
Sole proprietors, partners in a partnership, independent contractors, LLC members owning 20 percent or more (may elect exclusion), corporate officers owning 20 percent or more (may elect exclusion via IC-16 form), domestic workers earning less than 1000 per calendar quarter, and agricultural employees where the employer has fewer than 3 workers or payroll under 15000
Official Maryland Sources & Resources
- Maryland Maryland Workers’ Compensation Commission: https://www.wcc.state.md.us/
- Maryland Workers’ Comp Statute: https://law.justia.com/codes/maryland/labor-and-employment/title-9/
- U.S. Department of Labor — Workers’ Comp: dol.gov
- U.S. Small Business Administration: sba.gov
These Maryland workers compensation 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 Business Insurance Guides
Disclaimer: This guide is informational only and is not insurance, legal, or tax advice. Business Insure Guide is an independent educational resource, not an insurance agency or carrier. Coverage needs, legal requirements, and prices vary by business, profession, and state and change over time. Always verify the exact requirement and price with a licensed insurance agent and your state before you buy.