Maryland Contractor Insurance Requirements
Maryland requires workers' compensation for employers with one or more employees under the Maryland Workers' Compensation Act. The Home Improvement Commission licenses home improvement contractors, and the Maryland Contractor Registration requires proof of GL and WC. Maryland's proximity to Washington D.C. and its commercial real estate market drive robust COI requirements, with most property managers requiring $1M/$2M GL with completed operations and primary/non-contributory language.
Maryland COI Requirements at a Glance
The following table summarizes the minimum insurance requirements for contractors operating in Maryland. Commercial property managers often require limits above state minimums.
| Coverage Type | Minimum / Status |
|---|---|
| General Liability (per occurrence) | $1,000,000 |
| General Liability (aggregate) | $2,000,000 |
| Workers' Compensation | Mandatory 1+ employees |
| Umbrella / Excess Liability | Commonly Required on Large Projects Common minimum: $1,000,000 |
| Additional Insured Endorsement | Commonly Required |
| Waiver of Subrogation | Commonly Required |
Coverage Notes
GL: Maryland Home Improvement Commission requires $1M/$2M GL for licensed contractors. This is one of the higher state minimums.
WC: Maryland Labor and Employment § 9-201 requires WC for all employers with 1+ employees. Farmers employing fewer than 3 employees on a farm of fewer than 10 acres are exempt.
Umbrella: Required on state agency contracts and D.C.-area commercial projects. Baltimore commercial projects often require $2M excess.
Additional Insured: Required by MHIC for licensed contractors. Standard in all Maryland commercial property management.
Waiver of Subrogation: Standard on Maryland commercial contracts. Required on most state agency contracts.
Maryland-Specific Laws & Regulations
These laws directly affect how contractor insurance requirements are structured in Maryland. Property managers should be familiar with these statutes when reviewing vendor COIs.
Maryland Labor and Employment § 9-201 (Workers' Comp Act)
Mandatory WC for employers with 1+ employees. The Workers' Compensation Commission adjudicates disputes.
Maryland Home Improvement Act (MD. Bus. Reg. § 8-301)
Requires home improvement contractors to be licensed by the Home Improvement Commission, carrying $1M/$2M GL and WC. Violations carry civil penalties up to $5,000.
Maryland COI Frequently Asked Questions
Common questions from property managers and contractors about insurance requirements in Maryland.
Do contractors in Maryland need workers' compensation?
Yes. Maryland Labor and Employment § 9-201 requires workers' compensation for all employers with one or more employees. The Maryland Workers' Compensation Commission enforces compliance.
What are the minimum insurance requirements for contractors in Maryland?
Maryland Home Improvement Commission requires $1M per occurrence / $2M aggregate GL for licensed contractors — one of the higher state minimums. Workers' compensation is mandatory for all employers. Commercial property managers typically require these limits plus additional insured and completed operations.
What is the Maryland Home Improvement Commission (MHIC)?
The MHIC licenses residential home improvement contractors in Maryland. Licensed contractors must carry $1M/$2M GL and workers' compensation. Property managers can verify contractor MHIC license status online and should always check that a valid MHIC number appears on the contractor's COI or license documentation.
What COI requirements are standard for Maryland commercial property management?
Maryland commercial property managers typically require $1M/$2M GL with completed operations, workers' compensation, additional insured (primary/non-contributory), and waiver of subrogation. D.C.-area properties often also require $2M umbrella coverage.
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