Maryland contractor insurance requirements

Workers' comp in Maryland

With few exceptions, Maryland employers with one or more employees, full-time or part-time, must carry workers' comp.

The agency in charge is the Maryland Workers' Compensation Commission. It can tell you whether a specific business needs coverage, and most states let you look up an employer's policy online.

Contractor licensing and insurance

Since June 1, 2024, Maryland home improvement contractors licensed by the Maryland Home Improvement Commission must carry at least $500,000 in general liability.

Indemnity and additional insured clauses

Maryland's anti-indemnity statute (Md. Code Ann., Cts. & Jud. Proc. § 5-401) voids construction contract clauses that make a contractor indemnify another party for that party's sole negligence. Clauses that cover shared fault are generally allowed.

What to check on a contractor COI for a Maryland project

1. Workers' comp. Nearly every contractor with employees needs it in Maryland. A contractor with a crew and no workers' comp on its COI is a gap. For an out-of-state contractor, confirm Maryland is listed on the workers' comp policy.
2. General liability. A Maryland license only shows the contractor met the state's floor. Compare each limit on the COI with your project requirements, which are usually higher.
3. Additional insured. The endorsement is a separate promise from the indemnity clause, so check both. Ask for the endorsement itself, not just a box ticked on the certificate.
4. Dates. Every policy should run through the end of the job. A COI only shows coverage on the day it was issued, so check again at each renewal.

Forsured checks every contractor COI against your project requirements, then keeps checking for the life of the project. Send us one project's requirements and a contractor COI or two for a free COI risk check.