# Maryland contractor insurance requirements

> What Maryland law says about workers' comp, contractor license insurance and indemnity clauses, and what to check on a contractor COI for a project there.

Reviewed Oct 28, 2026 by Forsured. Source: https://forsured.ai/coi-requirements/maryland/

## The short version

- Workers' comp required at: 1 employee
- License insurance minimum: $500K (home improvement)
- Anti-indemnity statute voids: Sole negligence

## Workers' comp in Maryland

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

Agency: [Maryland Workers' Compensation Commission](https://www.wcc.state.md.us/)

## 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.

## Common questions

### Do contractors need workers' comp in Maryland?

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

### Does Maryland require contractors to carry general liability 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.

### Can a Maryland construction contract make a contractor cover another party's negligence?

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.

## Sources

1. [Maryland workers' comp requirements](https://onpay.com/insights/workers-comp-requirements-by-state/maryland/), OnPay, May 2026
2. [Maryland Home Improvement Commission](https://labor.maryland.gov/license/mhic/index.shtml), Maryland Department of Labor
3. [Anti-Indemnity Statutes in All 50 States (2023)](https://grsm.com/wp-content/uploads/2023/10/Anti-Indemnity-Statutes-2023.pdf), Gordon Rees Scully Mansukhani, 2023
4. [State Workers' Compensation Officials](https://www.dol.gov/agencies/owcp/wc), U.S. Department of Labor

General information, not legal advice. Confirm with the state agency, your broker or your attorney.

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