As a contractor in Maryland, proper insurance coverage is essential for protecting your business, meeting state requirements, and securing contracts. This comprehensive guide breaks down essential insurance coverages Maryland contractors need, including costs based on our analysis of actual quotes from leading carriers.
Reinforce your business with our guide to contractors general liability insurance.
General Liability Insurance for Maryland Contractors
General liability insurance protects your contracting business from third-party claims of property damage and bodily injury. Based on our analysis of over 800 contractor quotes, here are the typical costs for Maryland contractors:
| Revenue Size | Average Premium | % of Revenue | Favorable Rate | Potential Savings |
|---|---|---|---|---|
| $500K | $5,400 | 1.1% | $3,100 | 43% |
| $1M | $9,100 | 0.9% | $6,300 | 31% |
| $2.5M | $23,200 | 0.9% | $15,600 | 33% |
These premiums assume:
- Clean claims history (5+ years without incidents)
- Standard $1M/$2M coverage limits
- Typical mix of residential and commercial work
- Approximately 10% subcontractor costs
Worker’s Compensation Insurance for Maryland Contractors
Worker’s compensation insurance is mandatory for Maryland contractors with employees. Based on our analysis, Maryland contractors typically pay around $3,776 per employee annually for workers’ compensation coverage.
For Maryland contractors, typical workers’ compensation costs per $100,000 of payroll average $7,230, which is relatively low compared to other states.
Common contractor classification codes and their approximate rates:
- Code 5606 (Project Manager/Supervisor): Lower risk rate
- Code 5645 (Residential Construction): Medium risk rate
- Code 5403 (Commercial/Large Projects): Higher risk rate
Key factors affecting premiums:
- Employee classification codes
- Annual payroll
- Claims history
- Safety programs
- Experience modifier rating (EMR)
Additional Business Insurance for Contractors in Maryland
1. Commercial Auto Insurance
- Typical cost: $1,000-$4,000 per vehicle annually
- Required for business-owned vehicles
- Coverage limits typically $500k-$1M
- Protects against accidents and damage during business use
- Covers both owned and leased vehicles used for work
2. Tools & Equipment Coverage
- Cost: $1,500-$5,000+ annually for $15k-$50k coverage
- Protects both owned and rented equipment
- Coverage follows equipment to all jobsites
- Protection against theft, damage, and vandalism
- Includes coverage during transport between locations
3. Commercial Property Insurance
- Annual premiums: $2,000-$20,000+ based on property value
- Protects offices, storage facilities, and workshops
- Coverage for fire, theft, vandalism, and natural disasters
- Business interruption coverage available as add-on
- Protection for stored materials and inventory
4. Builder’s Risk Insurance
- Premium: 0.15-0.75% of project value
- Covers projects under construction
- Protection against fire, weather, vandalism
- Coverage for materials both on-site and in transit
- Can include soft costs and delay coverage
5. Surety Bonds
- Helps secure larger contracts and government work
- Required for certain projects and licenses
- Premium: 1-3% of bond amount
- Rates vary based on credit and experience
- Demonstrates financial responsibility to clients
Get Maryland Contractor Liability with ContractorNerd
ContractorNerd specializes in making insurance simple and data-driven for Maryland contractors. Our platform offers:
- Instant online quotes from top-rated carriers
- Side-by-side coverage comparisons
- Contractor-specific expertise and guidance
- Streamlined application process
- Ongoing policy management support
- Claims advocacy when needed
Our team of contractor insurance specialists understands Maryland’s unique requirements and can help you:
- Optimize coverage levels based on your specific risks
- Find competitive rates through our carrier network
- Bundle policies for additional savings
- Ensure compliance with state regulations and contract requirements
To get started with tailored quotes for your Maryland contracting business, visit our online quote tool or speak with one of our contractor insurance specialists today.