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.