If you run a business in Baltimore, Annapolis, or Silver Spring, having the right insurance isn’t optional—it’s the law. Whether you’re a contractor, shop owner, or tech founder, understanding Maryland’s commercial insurance requirements protects your operations, people, and reputation.
This guide breaks down required coverages, important policies by industry, typical costs, and how to file a claim.
Who Needs Business Insurance in Maryland?
If your business has employees or uses vehicles for work, you must carry certain insurance policies.
Here’s what Maryland mandates:
- Workers’ Compensation: Required for any business with one or more employees. Sole proprietors with no employees are exempt but must secure coverage immediately upon hiring. Business owners can then choose to exclude themselves from their own policy.
- Commercial Auto Insurance: Mandatory for any business-owned vehicles. Policies must meet or exceed the state’s minimums:
- Liability: $30,000 per person / $60,000 per accident for bodily injury and $15,000 for property damage (30/60/15).
- Uninsured/Underinsured Motorist (UM/UIM): $30,000 per person / $60,000 per accident.
- Personal Injury Protection (PIP): A minimum of $2,500.
- Unemployment Insurance: Required if you pay at least $1,500 in wages in a calendar quarter or have one employee for 20 or more weeks annually.
Essential Coverage Types
- General Liability Insurance: Covers slip-and-fall injuries, damage to customer property, and legal defense if sued.
- Business Owner’s Policy (BOP): Combines general liability and commercial property insurance. Great for retail shops, restaurants, or offices.
- Professional Liability Insurance (E&O): Protects consultants, legal professionals, or tech firms from lawsuits over errors or bad advice.
- Cyber Liability Insurance: Critical for complying with Maryland’s data breach notification law, which requires businesses to protect personal information and report any breaches.
Real Claims, Real Risk
- Construction Companies: Falls, equipment theft, and subcontractor injuries are common.
- Retail & Boutiques: Slip-and-fall accidents, electrical fires, and theft claims spike during holiday weekends.
- Cafés & Restaurants: Kitchen fires, customer burns, and liquor-related incidents make specialized restaurant insurance a must.
- Tech Startups & Consultants: Phishing attacks and ransomware trigger serious costs. Cyber policies cover investigations, recovery, and customer notification.
How Much Does Maryland Small Business Insurance Cost?
Premiums vary by industry, size, claims history, and location.
Annual estimated costs:
- Retail Shops: $800–$1,500/year
- Restaurants: $1,200–$2,600/year
- Contractors: $1,900–$3,800/year
- Tech Firms / Consultants: $650–$1,200/year
In urban centers like Baltimore, rates often run higher. Near the coast, property premiums rise due to storm risks.
Discover cost-saving strategies in our guide: Local Business Insurance Solutions to Save You Money.
The Claims Process: What Maryland Law Requires
If disaster strikes, time matters.
- Report the incident quickly to your insurer.
- Submit documentation like police/fire reports, receipts, and photos.
- Under state law, your insurer must acknowledge a claim within 15 working days and must typically pay a settled claim within 10 working days.
- Cooperate with any adjuster inspection required for large property damage claims.
Penalties for not carrying required workers’ comp include fines of up to $10,000 and stop-work orders.
Final Takeaways: Protect Now, Not Later
- Know legal mandates: Ensure you have Workers’ Comp and a complete Auto policy (Liability, UM/UIM, and PIP) if required.
- Assess your risk: Consider adding cyber liability and professional liability.
- Bundle to save: A BOP is an efficient way to get broad coverage.
Call us at 855-718-7552 to speak with a licensed advisor.
Don’t wait until an accident, fire, or cyberattack forces you to act. Protect your business today.
