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Workers’ Compensation Insurance Requirements in Maryland
Maryland requires workers’ comp from your first employee, with fines up to $25,000 for skipping it. Get fast, compliant coverage through Trade Safe.
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Workers’ Compensation Insurance Requirements in Maryland
Maryland contractors working across the DC-metro and Baltimore construction markets are required to carry workers’ comp starting with a single employee, no matter how few hours they work. With statutory fines reaching $25,000 and a state-backed insurer of last resort available, there’s little room to operate uninsured.
Maryland Workers’ Compensation Legal Requirements
Maryland law requires employers with one or more employees — full-time, part-time, or seasonal — to carry workers’ compensation insurance, with owners themselves exempt but every employee they hire covered from day one.
- Threshold: coverage required once a business has one or more employees, regardless of full-time, part-time, or seasonal status
- Sole proprietors and partners are not required to cover themselves personally, but must cover any employee immediately upon hire
- Penalties: fines up to $25,000 for lacking required coverage, with additional criminal misdemeanor exposure up to $10,000 and possible imprisonment
- Chesapeake Employers’ Insurance Company (CEIWC) serves as Maryland’s insurer of last resort if a contractor can’t obtain coverage on the private market
How Maryland’s Workers’ Comp System Works
System type: Competitive State Fund
Maryland runs a competitive state fund model: Chesapeake Employers’ Insurance Company competes with private carriers as an option, rather than holding an exclusive monopoly on coverage. Per the Oregon DCBS 2024 Workers’ Compensation Premium Rate Ranking Study, Maryland ranks 37th of 51 jurisdictions with an index rate at 82% of the national median, placing it among the more affordable states for workers’ comp.
How Maryland’s Rates Compare by Trade
| Trade (NCCI Class Code) | National Rank (of 51) | Rate per $100 of Payroll |
|---|---|---|
| Roofing (Class 5551) | 22nd of 51 | $10.23 |
| Electrical Wiring (Class 5190) | 27th of 51 | $2.35 |
| Plumbing NOC (Class 5183) | 31st of 51 | $2.55 |
Source: Oregon Dept. of Consumer and Business Services, 2024 Workers’ Compensation Premium Rate Ranking Study (published June 2025) — the only study benchmarking all 50 states plus DC on a common industry mix.
Filing a Workers’ Comp Claim in Maryland
Injured employees report the injury to their employer, who notifies their insurer and files with the Maryland Workers’ Compensation Commission (WCC). Disputed claims go before the WCC for a hearing rather than civil court, and the Uninsured Employers’ Fund steps in when an employer lacks coverage.
Penalties for Non-Compliance
Maryland employers who fail to carry required workers’ comp coverage face civil fines of up to $25,000, plus potential criminal misdemeanor charges carrying fines up to $10,000 and possible imprisonment; the Uninsured Employers’ Fund (UEF) can pay the injured worker’s claim and then pursue the employer directly for reimbursement.
Resources: Maryland Workers’ Compensation Commission — Employer FAQ, Maryland Labor and Employment Code, Title 9 — Workers’ Compensation, Maryland People’s Law Library — Workers’ Compensation
How Much Does Workers’ Comp Insurance Cost in Maryland?
Maryland runs below the national median for workers’ comp overall, with roofing again standing out as the priciest of the three core trades due to fall-related injury risk.
| Trade | Estimated Cost per $100 Payroll | What Drives It |
|---|---|---|
| Roofing | $10.23 (per the Oregon study’s Class 5551 rate) | Height and fall exposure keep roofing well above other trades even in a below-median state |
| Electrical | $2.35 (per the Oregon study’s Class 5190 rate) | Moderate risk profile keeps electrical among the more affordable trade classes in Maryland |
| Plumbing | $2.55 (per the Oregon study’s Class 5183 rate) | Slightly above electrical, reflecting typical strain and equipment-related claim patterns |
What Moves the Price Up or Down
- Experience modification factor built from a contractor’s claims history
- Whether the employer secures coverage through the private market or Chesapeake Employers as last resort
- Payroll size and mix of trade class codes across the crew
- Proximity to the DC-metro construction market, which can affect available carrier competition and pricing
Rates above are drawn from the Oregon DCBS 2024 Workers’ Compensation Premium Rate Ranking Study and represent national benchmark comparisons, not a binding quote. Actual premium depends on your experience modification factor, claims history, and payroll — get a personalized quote from Trade Safe.
Frequently Asked Questions
How many employees before Maryland requires workers’ comp?
Just one. Any business with one or more employees — full-time, part-time, or seasonal — must carry workers’ compensation insurance, though the owner personally is not required to be covered.
Is Chesapeake Employers the only option in Maryland?
No. It’s a competitive state fund, meaning it’s one option among many private carriers, not an exclusive state monopoly — Chesapeake exists mainly as a guaranteed-issue backstop if private insurers decline to write coverage.
What’s the fine for operating without workers’ comp in Maryland?
Up to $25,000 in civil fines, plus separate criminal misdemeanor exposure that can add fines up to $10,000 and possible imprisonment.
What happens to an injured worker if their Maryland employer is uninsured?
The Uninsured Employers’ Fund (UEF) can pay the worker’s claim directly, after which the state pursues the uninsured employer for full reimbursement of everything paid out.
Workers’ compensation requirements and penalties can change; verify current rules with the Maryland Workers’ Compensation Commission.
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