If your Maryland partnership has even one employee, yes, it must carry workers compensation for that person. Partners themselves, though, are out by default: Maryland does not treat a partner as a covered employee unless the partnership makes an election. A partnership can elect to cover a partner, but only one who devotes full time to the business, and only by written notice naming that partner to both the Commission and the insurer. So the answer splits: employees trigger a required policy, while covering the partners is a choice.
Who this is for: Partners in a Maryland general partnership, from a two-partner firm with no staff to a partnership running a payroll of employees.
The short version
- A partnership must carry workers comp once it has one covered employee.
- Partners are out by default, unlike working LLC members and corporate officers.
- The partnership can elect to cover a partner only if that partner works full time.
- The election takes effect only after written notice naming the partner goes to both the Commission and the insurer.
- Clients and general contractors often want proof of coverage even from a partner-only firm.
Partners are out by default
Maryland lines partners up with sole proprietors: not automatically covered employees. That means a partnership of two or three partners with no other staff is generally not required to carry a policy for the partners themselves. The partnership can choose to bring a partner onto the policy, but Maryland limits that election to a partner who devotes full time to the business, so a passive or part-time partner cannot be added. And like every owner election in the state, it is not effective just because the carrier lists the partner. The partnership has to give written notice naming the partner to both the Workers' Compensation Commission and the insurer. A partner who is covered this way then has their own on-the-job injuries paid by comp, which partners in physical trades often want.
What triggers a required policy
| Your partnership setup | Is a policy required? | What to know |
|---|---|---|
| Two partners, no employees | No | Partners are out by default; a full-time partner may elect in |
| Partners plus one employee | Yes | The employee is covered from day one |
| Partners plus seasonal or part-time staff | Yes | Those workers count; only a true casual worker is the narrow exception |
| A partner who wants their own injuries covered | Optional | Available only to a full-time partner, by notice to the Commission and insurer |
| Partnership using 1099 subcontractors | Often yes | Control decides it, and an uninsured sub's injury can fall to the partnership |
Choosing whether to cover the partners
Once you have employees you have to insure them, so the only real choice left is the partners. Covering a full-time partner adds their pay to the premium but means comp pays if that partner is hurt on the job, which is usually worth it in a hands-on trade. Leaving partners off keeps the premium lower but leaves their own injuries to health insurance or a separate disability policy. Whatever you choose, put it in writing to both the Commission and the insurer so the election actually holds up, and collect proof of coverage from any subcontractor you use, because an uninsured sub's injured worker can become the partnership's responsibility.
A Towson example
Illustrative, not a quote. A Towson accounting partnership has two full-time partners and one part-time bookkeeper. Maryland requires a policy the moment the bookkeeper is hired, so the partnership buys coverage for the employee. The partners are out by default, and because their work is at a desk with little injury risk, they decide not to elect themselves onto the policy. When a business client asks the firm for proof of coverage, the partnership already has a certificate ready. We make sure the clerical payroll is rated on the right category so the firm is not overpaying for low-risk office work. See our workers comp for accountants and bookkeepers page.
Real questions Maryland owners ask
Does our Maryland partnership need workers comp?
Once the partnership has one employee, yes, it must cover that person. The partners themselves are out by default and are not required to be covered unless the partnership elects it.
Are partners covered automatically in Maryland?
No. Maryland treats partners like sole proprietors, out by default. That is the opposite of working LLC members and corporate officers, who are covered unless they qualify to opt out.
Can we cover a partner if we want to?
Yes, but only a partner who devotes full time to the business. The partnership elects coverage by giving written notice naming that partner to both the Commission and the insurer.
Do part-time or seasonal employees count for us?
Yes. Any employee triggers the requirement in Maryland, and part-time and seasonal workers count. Only a true one-off casual worker sits in the narrow exception.
Is listing a partner on the policy enough to cover them?
Not by itself. The election is only effective once the partnership gives written notice naming the partner to both the Workers' Compensation Commission and the insurer, not just by the carrier listing them.
What if our partnership uses subcontractors?
Be careful. A worker you control may count as an employee regardless of a 1099, and an uninsured subcontractor's injured worker can become the partnership's responsibility, so collect proof of coverage from every sub.
What happens if we skip coverage for an employee?
You are exposed. Maryland can order the partnership to get covered and pay up to 25,000 dollars, treat the failure as a misdemeanor, and let the injured worker sue without the partnership's usual defenses.
Why Maryland owners choose Morrow
- We shop the right market for you. In Maryland you buy workers' comp on the open market from any private insurer licensed in the state, and Maryland also runs a competitive state fund, Chesapeake Employers' Insurance Company, that both competes for ordinary business and must cover eligible employers no one else will take, so we can shop your rate widely and still have a guaranteed fallback for hard-to-place work.
- We catch pricing mistakes. Your price depends heavily on the category your work falls into for pricing (the class code). Put people in the wrong category and you overpay for years. We review your payroll and classifications before you buy.
- Proof of coverage, fast. Need a certificate (proof of coverage) for a general contractor or a landlord before Monday? We turn those around the same business day for most carriers.
- We help lower the score that drives your price. Insurers give you a score based on your past claims that raises or lowers your cost (the experience modification rate). We review it each year, flag errors, and connect you with return-to-work and safety resources that bring it down.
- Real people when a claim happens. When someone gets hurt, we stay involved through the life of the claim, not just at renewal.
Related Maryland guides
Every Maryland business is set up a little differently. These companion guides answer the same question for other situations, plus the national explainers behind the terms used here.
- Business insurance in Maryland (start here)
- Workers comp: the owner's overview
- I own an LLC: do I need workers comp?
- I'm a sole proprietor: do I need workers comp?
- I own a corporation (C-corp or S-corp): do I need it?
- We're a nonprofit: do we need workers comp?
- My workers are 1099: do I still need it?
- Only part-time or seasonal staff: do I need it?
- I only employ family: do I need workers comp?
- Remote or out-of-state staff: do I need coverage?
- What happens if I don't carry workers comp?
- How much does workers comp cost?
- How do I get workers comp (even if turned down)?
- What insurance do I need for a contractor license?
- Workers compensation insurance, explained
- What workers comp costs (national guide)
- Do sole proprietors need workers comp?
- Hiring your first employee: what changes
- Maryland accountant workers comp
This guide is general information, not legal advice. Maryland rules and penalty amounts can change, so verify current requirements with the Maryland Workers' Compensation Commission or a licensed advisor before you rely on them. Last updated: July 2026.