Maryland Business Insurance Guide 2026

Who must carry it: Every employer with covered employees; no minimum headcount (Maryland Code, Labor and Employment § 9-402 (Maryland General Assembly)).

Exemptions and exclusions

Farm workers are covered only when the farmer has at least three full-time employees or an annual full-time payroll of at least $15,000 (§ 9-210). Certain corporate officers and LLC members may elect exemption (§ 9-206), and a partner is not a covered employee unless the partnership elects (§ 9-219). Whether someone is an independent contractor depends on the statute's tests; ask the commission, which can also tell you how the law treats household employees.

The agency to ask is the Maryland Workers' Compensation Commission. When a proposal arrives, the workers' comp calculator lets you check its payroll math, and the workers' compensation guide explains what you are buying.

Maryland's minimum auto liability limits:

• Bodily injury liability: $30,000 per person and $60,000 per accident
• Property damage liability: $15,000 per accident
• Start date: not stated in the source; confirmed in force on October 3, 2026
• Source: Maryland Motor Vehicle Administration, Auto insurance requirements

Transportation Article § 17-103(b), the statute behind these minimums, also requires personal injury protection (Insurance Article § 19-505, unless waived under § 19-506 or § 19-506.1) and uninsured motorist coverage at least equal to these minimum amounts (Insurance Article § 19-509) (Md. Transportation § 17-103). Ask your insurer whether these also apply to your commercial and fleet policies.

Commercial and for-hire vehicles can face different or higher federal or state requirements. Our commercial auto guide covers owned, hired and non-owned vehicles.

Maryland's Family and Medical Leave Insurance (FAMLI) contributions begin January 1, 2027 and benefits become available January 1, 2028, so nothing is collected or paid in 2026 (Maryland FAMLI: about the program). The initial rate is 0.9% of wages up to the Social Security wage cap, split 0.45% employer and 0.45% employee, for wages paid in 2027; employers with fewer than 15 employees remit only half the rate (Maryland FAMLI: make contributions).

FAMLI will be funded through contributions from both employers and employees.

Source: Maryland Department of Labor FAMLI, Make contributions

What employers do: Starting January 2027, withhold employee contributions (up to half the rate), add the employer share (employers with fewer than 15 employees remit only 50% of the rate) and remit quarterly with wage and hour reports through paidleave.maryland.gov, starting April 2027 (Maryland FAMLI: make contributions).

Once benefits start, eligible workers can take up to 12 weeks of job-protected paid leave a year, with benefits of up to $1,000 per week (Maryland FAMLI: about the program).

Your trade license, lease or client contracts in Maryland can set their own conditions, for example general liability limits or certificate wording. Keep track with the certificate of insurance checklist, and see the requirements-by-state guide if you work across state lines.

• Workers' compensation: Maryland Workers' Compensation Commission
• Auto liability minimums: Maryland Motor Vehicle Administration, Auto insurance requirements
• Paid leave and disability insurance: Maryland Department of Labor, FAMLI Division

The state requirements checklist prepares questions from your headcount and vehicles; to ask PolicyBenchmark to follow up, request coverage help.