Maryland generally requires workers' compensation insurance for employers with one or more employees. Thresholds, exceptions, and official sources.
Workers' compensation provides benefits for work-related injuries and illnesses. In Maryland, it is state-mandated for many employers.
See our workers' compensation explainer and Maryland business insurance guide for details.
Workers' comp is not optional for qualifying employers — coverage is obtained from a Maryland-licensed carrier, approved self-insurance, or registered PEO.
It covers employee medical treatment and wage replacement; it does not replace general liability or commercial auto.
Threshold: Employers with one or more employees — full-time or part-time — must carry coverage. Sole proprietors and partners are generally excluded but may elect coverage.
No waivers — employers and employees cannot waive provisions of the Maryland Workers' Compensation Law. Maryland-specific coverage is required for work performed in Maryland.
Administered by the Maryland Workers' Compensation Commission.
Compare: Virginia requires coverage at 3+ employees — important if you operate across the DMV.
Payroll, employee job classifications (risk codes), claims history (experience mod), and industry type drive workers' comp premiums. Rates are filed with the state; the Commission does not set premiums.
Public insurance case files
Public records and regulatory reports can show how insurance rules affect actual consumers. These files are not customer testimonials.
Maryland · Public record
More than $70 million in 2025
The Maryland Insurance Administration reported that it recovered more than $70 million for Maryland consumers in 2025 by helping resolve insurance complaints and related issues. The figure covers many complaints across several agency units and does not predict any individual's result.
Maryland Insurance Administration · January 29, 2026