Short answer: Maryland requires employers to carry workers' compensation. The state's FAMLI paid family and medical leave program has been delayed. Contributions begin January 1, 2027, with the first quarterly payment due April 30, 2027, and benefits become available January 1, 2028. Business vehicles need at least 30/60/15 liability, matching uninsured/underinsured motorist coverage, and $2,500 PIP.
This guide is general information for Maryland employers and business owners. It isn't legal advice. Agency rules change, so confirm with the agencies linked below.
1. Workers' compensation
Details: is workers comp required in Maryland.
2. FAMLI timeline
Per Maryland FAMLI, contributions begin January 1, 2027, with the first quarterly payment due April 30, 2027. Employers will collect employee deductions, add the employer share where required, and remit quarterly. Per the program overview, benefits start January 1, 2028. Watch the state site for updates.
3. Business vehicles
Per the MVA, the minimums are $30,000/$60,000 bodily injury, $15,000 property damage, uninsured/underinsured motorist at the same limits, and $2,500 PIP. See commercial auto insurance.
State unemployment insurance
Unemployment insurance is the other employer coverage Maryland makes mandatory. Per the U.S. Department of Labor's Significant Provisions of State UI Laws, January 2026, Maryland employers are covered as soon as you have any covered employee. The 2026 taxable wage base is $8,500 per employee. Experience-rated employers pay 0.30% to 7.50%, and new employers start at a base rate of 2.60% (higher rates can apply by industry). Register with the state's unemployment tax agency when you hire.
Beyond the mandates
Most other coverage, like general liability, property, professional liability and cyber, comes from contracts, leases and lenders rather than Maryland law. See small business insurance by industry or home-based business insurance. For-hire interstate carriers also face federal minimums under 49 CFR 387.9, starting at $750,000.
Questions? Contact Alishahi Insurance or call (877) 711-4545. See insurance in Maryland.
Frequently asked questions
When do Maryland FAMLI contributions start?
January 1, 2027, with the first quarterly payment due April 30, 2027.
What's Maryland's minimum auto insurance?
30/60/15 liability, matching UM/UIM and $2,500 PIP.
Do Maryland employers have to pay for unemployment insurance?
Yes, once covered. The 2026 taxable wage base is $8,500, and new employers start at 2.60%.
Alishahi Insurance · 439 N Canon Dr, Penthouse, Beverly Hills, CA 90210 · (877) 711-4545 · CA License #4348151. General information only. This isn't legal, tax or financial advice or a coverage determination. Coverage depends on policy language and underwriting, and rules vary by state.