In Maryland, whether a business owner or corporate officer is covered by workers' compensation — and whether they can change that — depends on the entity type and Maryland's own rules. Getting the election right affects both your protection and your premium. Here is how inclusion and exclusion work in Maryland, the form or filing to use, and what it means for your policy.
Who must carry workers' compensation in Maryland?
Mandatory from the first covered employee — no headcount threshold.
Can owners and officers be included or excluded in Maryland?
| Sole proprietor | Excluded; may elect in. |
|---|---|
| Partners | Excluded; may elect in. |
| LLC members | Included if paid; may elect out only if owning 20%+ of profits. |
| Corporate officers | Included if paid; may elect out (close corporation any %; non-close corporation capped at 5 officers; farm/professional corporation 20%+ stock). |
How to make the election in Maryland
- Maryland Workers Comp Inclusion-Exclusion Form
- Official source: Maryland WCC — sole proprietor/partner election-in form
Payroll counted for an included owner in Maryland
When an owner or officer is included, premium is figured on their payroll between a minimum and maximum (effective 1/1/2027), set by NCCI.
| Included owner/officer minimum | $1,550 per week |
|---|---|
| Included owner/officer maximum | $6,100 per week |
Included executive officer $1,550–$6,100/week; covered partners, sole proprietors, and LLC members at $79,900/year. NCCI-set, changes annually.
These amounts update periodically; we confirm the current figure for your policy.
Maryland's assigned-risk / residual market
An employer that can't secure workers' comp in the standard market can still get covered through Chesapeake Employers' Insurance Company (insurer of last resort; former IWIF). We market your risk to voluntary carriers first and turn to the residual market only as a last resort.
Related
Maryland business insurance · Workers' compensation coverage · Maryland Workers' Compensation Commission.
Frequently Asked Questions
Do business owners have to carry workers' comp on themselves in Maryland?
It depends on your entity and role. Excluded; may elect in. Included if paid; may elect out (close corporation any %; non-close corporation capped at 5 officers; farm/professional corporation 20%+ stock). Employees are always covered.
How do I include or exclude an owner from workers' comp in Maryland?
The right form, portal, or endorsement depends on your entity type. Maryland publishes its own form, which we complete and file with you.
What payroll is used for an included owner in Maryland?
Included executive officer $1,550–$6,100/week; covered partners, sole proprietors, and LLC members at $79,900/year. NCCI-set, changes annually. We confirm the current figure for your policy.
Can Cory Washington & Co. handle my Maryland workers' comp election?
Yes. We confirm which rule applies to your entity, prepare the correct form or election, coordinate it with your carrier, and keep your workers' comp aligned with the rest of your program. Request a quote or a policy review and we'll take it from there.
This page is general educational information from Cory Washington & Co. LLC about how workers' compensation owner inclusion and exclusion works in this state. It is not legal, tax, or insurance advice and is not a determination of your eligibility or obligation. Workers' compensation laws, forms, payroll limits, and residual-market programs change and depend on your entity type, ownership, and operations. Confirm the current rules and amounts with your licensed advisor at Cory Washington & Co. LLC and the state agency before making any election.