Maryland has statutory insurance minimums for two specific categories of contractor: Master Plumbers and MHIC-licensed home-improvement contractors. The market (general contractors, commercial customers, larger residential customers, municipal permit offices) will require proof of coverage beyond minimums. Minimum coverages a new Maryland trades shop should expect to carry: - General liability. Maryland Master Plumbers must maintain at least $400,000 in coverage: $300,000 general liability and $100,000 property damage, written by a Maryland-approved carrier. Source: Maryland State Board of Plumbing License Requirements (https://labor.maryland.gov/license/pl/plreq.shtml). MHIC-licensed home-improvement contractors must maintain commercial general liability insurance per MHIC rules. $1M per occurrence / $2M aggregate is the typical commercial job requirement. - Workers' compensation. Maryland is mandatory. Under Md. Code Ann., Labor and Employment §9-402, every Maryland employer with 1 or more employees must secure workers' compensation. Sole proprietors and single-member LLC owners may exclude themselves by filing the appropriate form with the Workers' Compensation Commission. Source: Maryland Workers' Compensation Commission (https://www.wcc.state.md.us/). - Commercial auto. Your personal auto policy almost certainly excludes business use. Hired and non-owned auto coverage protects against claims arising from employee-owned vehicles used on company business. - Tools and equipment (inland marine). Homeowners and auto policies exclude business tools beyond small dollar limits. Inland marine is the contractor-specific tool coverage. - Professional liability (errors and omissions). Rarely needed for pure trades work but useful if you do design-build or estimating for others. - Umbrella. A $1M or $2M umbrella is cheap relative to what it protects. Shop the market. Trade association programs (ABC Greater Baltimore, ABC Chesapeake Shores, AGC Maryland, PHCC Maryland, IBEW/NECA-affiliated shops) often have group insurance programs that beat street-rate premiums for the trade. Chesapeake Employers Insurance Company (formerly IWIF) is a Maryland-focused workers' compensation carrier; quote against standard-market carriers. Never let coverage lapse during an active job. A 1-day gap on a multi-month project is enough to void a claim if something happens during the gap.
MD · Insurance
Insurance in Maryland
General liability, workers comp, and commercial auto for a new shop.
Not legal, financial, or career advice. Trades Navigator compiles state board rules, statutes, and federal data into a navigable layer linked to primary sources. We do not maintain editorial attestation on each line. Always verify the specific number, fee, deadline, or rule against the linked primary source before relying on it. Confirm any decision with the relevant state agency, a lawyer, or an accountant.
Correction-report email coming soon.