All Maryland businesses who employ at least one or more part-time or full-time employee are required by law to buy work comp in Maryland.


A Sole Proprietor or Partner is excluded from coverage, but can elect to be included on a work comp policy.

If Sole Proprietors and Partners opt to be covered they must use a $53,400 payroll (As of January 1, 2017).

Corporate officers are included for coverage, but can choose to be excluded from coverage.

Rejection or Election of Work Comp Coverage Document:  Maryland Coverage Exclusion and Inclusion Forms and Instructions – This link will take you to the Maryland Workers Compensation Commission website. At arrival, please scroll down to a section header called, “Forms.”

Corporate Officers or LLC members who are covered on a policy must apply a minimum payroll of $1,050 per week and a maximum rate of $4,000 (as of January 1, 2017).

LLC Members who provide a service for monetary compensation are statutorily covered. Those covered, but owning more than 20% or more interest in the LLC may elect to be exempt.

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