Maryland small business insurance requirements: workers' compensation for one employee, 30/60/15 auto limits and home improvement licensing

Maryland: what the state requires of a small business

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In Maryland, every employer with at least one covered employee must secure workers' compensation through an authorized insurer, a self-insurance group or approved individual self-insurance; every registered vehicle must carry at least $30,000 per person, $60,000 per accident and $15,000 property damage liability, uninsured motorist coverage at the same limits and $2,500 of personal injury protection unless waived; and home improvement contractors must hold a Maryland Home Improvement Commission license backed by liability insurance.

Reviewed by CoverMatch licensed agents, Licensed property & casualty agents · Reviewed Oct 11, 2026 Updated Oct 30, 2026

Maryland rules with sources
Topic	The rule in Maryland	Source
Workers' compensation	The Workers' Compensation Act applies to each person with at least one covered employee, and each employer must secure compensation for all covered employees through an authorized insurer, a self-insurance group or individual self-insurance approved by the Commission. Sole proprietors and partners are outside unless they elect in; corporate officers and LLC members are covered unless they elect out.	Md. Code, Labor and Employment §§ 9-201, 9-402 and 9-206; Maryland Workers' Compensation Commission
Uninsured employers	An employer that fails to secure compensation is subject to fines assessed by the Commission, loses the exclusive-remedy defense and is pursued by the Uninsured Employers' Fund for benefits it pays to the injured worker.	Md. Code, Labor and Employment §§ 9-1001 and 9-1108; Maryland Workers' Compensation Commission
Auto liability minimums	Bodily injury $30,000 per person / $60,000 per accident and property damage $15,000, uninsured and underinsured motorist coverage at least equal to those limits, and personal injury protection of $2,500 unless waived in writing by the named insured.	Md. Code, Transportation § 17-103 and Insurance §§ 19-504, 19-505, 19-509; Maryland Motor Vehicle Administration — Insurance requirements
Home improvement contractors	Anyone who performs or contracts for home improvement work in Maryland must hold a Maryland Home Improvement Commission contractor license, demonstrate financial solvency, pay into the Home Improvement Guaranty Fund and maintain general liability insurance of at least $50,000; the license number must appear in contracts and advertising.	Md. Code, Business Regulation §§ 8-301, 8-302 and 8-405; Maryland Home Improvement Commission

Topic

The rule in Maryland

Source

Workers' compensation

The Workers' Compensation Act applies to each person with at least one covered employee, and each employer must secure compensation for all covered employees through an authorized insurer, a self-insurance group or individual self-insurance approved by the Commission. Sole proprietors and partners are outside unless they elect in; corporate officers and LLC members are covered unless they elect out.

Md. Code, Labor and Employment §§ 9-201, 9-402 and 9-206; Maryland Workers' Compensation Commission

Uninsured employers

An employer that fails to secure compensation is subject to fines assessed by the Commission, loses the exclusive-remedy defense and is pursued by the Uninsured Employers' Fund for benefits it pays to the injured worker.

Md. Code, Labor and Employment §§ 9-1001 and 9-1108; Maryland Workers' Compensation Commission

Auto liability minimums

Bodily injury $30,000 per person / $60,000 per accident and property damage $15,000, uninsured and underinsured motorist coverage at least equal to those limits, and personal injury protection of $2,500 unless waived in writing by the named insured.

Md. Code, Transportation § 17-103 and Insurance §§ 19-504, 19-505, 19-509; Maryland Motor Vehicle Administration — Insurance requirements

Home improvement contractors

Anyone who performs or contracts for home improvement work in Maryland must hold a Maryland Home Improvement Commission contractor license, demonstrate financial solvency, pay into the Home Improvement Guaranty Fund and maintain general liability insurance of at least $50,000; the license number must appear in contracts and advertising.

Md. Code, Business Regulation §§ 8-301, 8-302 and 8-405; Maryland Home Improvement Commission

Workers' compensation in Maryland

Maryland's Act applies from the first covered employee. The employer secures coverage through an insurer, a self-insurance group or Commission-approved self-insurance; proprietors and partners start outside and may elect in, officers and LLC members start inside and may elect out. Uninsured employers lose the exclusive-remedy protection, face Commission fines and repay the Uninsured Employers' Fund.

Auto liability in Maryland

Maryland requires 30/60/15 liability with matching uninsured and underinsured motorist coverage and $2,500 of personal injury protection unless waived. The Motor Vehicle Administration tracks lapses electronically and fines accrue by the day. Business vehicles are usually written at a $1M combined single limit because leases, platforms and client contracts call for it.

Home improvement contractors in Maryland

Home improvement work is licensed, not merely registered: the Maryland Home Improvement Commission requires an exam, financial solvency, the Guaranty Fund assessment and general liability insurance of at least $50,000, and the license number must appear on contracts and advertising. Electrical, plumbing and HVACR trades are licensed by their own state boards.

How CoverMatch uses these rules

A Maryland business in the wallet is checked against these rules: workers' compensation from the first employee, the 30/60/15 package on scheduled vehicles, and the license and general liability floor for home improvement classes. Each rule links to its source, and a licensed agent reviews this page before it publishes and whenever the rules change.

Sources

Questions people actually ask

Does a Maryland cleaning company with one part-time employee need workers' compensation?

Yes. Maryland counts coverage from the first covered employee with no headcount threshold, and part-time workers are covered employees.

Can a Maryland business waive PIP on its vehicles?

The named insured can waive personal injury protection in writing for themselves and family members; it still applies to other occupants and pedestrians. Commercial policies are usually written at a $1M combined single limit for liability regardless.

What does the Maryland Home Improvement Commission license require beyond the exam?

Proof of financial solvency, the Guaranty Fund assessment, and general liability insurance of at least $50,000 that stays in force for the life of the license. Customers and lenders usually ask for far more than the minimum.

By business type in Maryland