Maryland Workers Comp for Sole Proprietors
Maryland separates a proprietor’s personal election from insurance for employees. A sole proprietor normally is not a covered employee unless the statutory election is made; a proprietor’s status declaration is not a certificate insuring a crew.
What the official sources establish
- Labor and Employment §9-227 excludes a proprietor absent an election; a full-time proprietor may elect inclusion.
- The election requires written notice to both the Workers Compensation Commission and the insurer.
- Commission form IC-02 records elected or non-elected owner status and expressly states the need to obtain coverage if one or more employees are hired.
Use the status form for its actual purpose
The Commission form asks about an individual’s covered-employee election over a stated period. Keep that distinction visible when reviewing a vendor packet. If the vendor is personally excluded, record that fact and the basis for any contractual acceptance. If the proprietor elected inclusion, obtain evidence that the election and insurance correspond to the period of work. Neither result tells you that a later helper is covered. A process that asks about staffing at onboarding and again when the scope changes is more useful than filing a status form indefinitely.
A practical review workflow
- Ask whether the proprietor works alone or brings employees or helpers.
- Collect the signed status form for the relevant period and match its individual and business names.
- If inclusion is claimed, request policy and election evidence from the broker.
- If staffing changes, reopen review and require employee coverage evidence before relying on the earlier declaration.
Example: an insurance file that needs another check
A hypothetical sole proprietor repairs doors alone and signs a status form indicating no owner election. Three months later the vendor adds an assistant for a larger project. The manager asks for employee coverage documentation rather than relying on the earlier form. The manager keeps the original declaration, the updated staffing statement and the replacement insurance evidence together.
Keep the next review visible
Use the state requirements guide for the broader coverage context. Keep the supporting documents beside the subcontractor onboarding checklist, and use a COI review checklist for the policy fields. Record unresolved questions as pending review rather than treating missing evidence as confirmed coverage.
Sources
Sources checked November 3, 2026.
Frequently asked questions
Is a Maryland sole proprietor automatically a covered employee?
No. Section 9-227 provides for an election, with written notice to the Commission and insurer.
Does IC-02 insure employees?
No. It records the proprietor’s status and states the obligation to obtain insurance when employees are hired.