Restaurant Workers' Comp in Maryland
What Maryland requires of restaurants and bars for workers' compensation — when it kicks in, who's exempt, and what it costs.
Reviewed by J. Robert Smith, Licensed Insurance Agent (NPN 10378680). Last updated .
Yes. Maryland requires nearly every employer with one or more employees—full- or part-time—to carry workers' compensation insurance, one of the strictest thresholds nationwide. A restaurant needs coverage from its first hire. Sole proprietors, partners, qualifying LLC members, and corporate officers may formally opt out for themselves, but their employees must still be covered.
- Required?
- Yes
- Kicks in at
- Any employer with one or more covered employees (full- or part-time) — effectively from the first hire. There is no minimum-employee or minimum-payroll floor for a restaurant with employees.
- Restaurant rate
- NCCI-rated state. Full-service restaurants use 9082 (Restaurant NOC), fast food uses 9083. Maryland restaurant premiums average roughly $0.74 per $100 of payroll — below the national 9082 average near $1.06 — per industry cost studies; actual rate varies by carrier and experience mod. Approximate, industry tier.
- Market
- Maryland has a competitive private market backed by Chesapeake Employers' Insurance Company (formerly IWIF), a state-created competitive fund that also serves as the insurer of last resort and assigned-risk market for employers unable to obtain coverage privately.
Is workers’ comp required for a restaurant in Maryland?
Maryland requires workers' compensation once you reach Any employer with one or more covered employees (full- or part-time) — effectively from the first hire. There is no minimum-employee or minimum-payroll floor for a restaurant with employees.. Sole proprietors and partners are not covered employees and need not insure themselves; LLC members owning 20%+ and corporate officers are automatically covered but may elect out. Exemption is not automatic — an IC-16 exclusion form must be filed with the Commission. Agricultural employers are exempt below 3 employees or $15,000 annual payroll.
What restaurant workers’ comp costs in Maryland
The restaurant class-code rate in Maryland is NCCI-rated state. Full-service restaurants use 9082 (Restaurant NOC), fast food uses 9083. Maryland restaurant premiums average roughly $0.74 per $100 of payroll — below the national 9082 average near $1.06 — per industry cost studies; actual rate varies by carrier and experience mod. Approximate, industry tier.. Your premium is that rate applied per $100 of payroll and adjusted by your experience modifier, so it scales with how many people you employ and your claims history. Maryland has a competitive private market backed by Chesapeake Employers' Insurance Company (formerly IWIF), a state-created competitive fund that also serves as the insurer of last resort and assigned-risk market for employers unable to obtain coverage privately.
What owners in Maryland miss
- Maryland is among the strictest states, requiring coverage for virtually any employer with even one employee, so a restaurant has no small-headcount safe harbor before it must insure.
- Chesapeake Employers' Insurance Company (the former Injured Workers' Insurance Fund) acts as Maryland's competitive state fund and guaranteed backstop, so a restaurant denied in the voluntary market can still obtain a policy there.
- Owner and officer exemptions in Maryland require proactively filing the Commission's IC-16 exclusion form — simply not buying coverage for yourself does not make you officially exempt.
- Failure to secure required coverage can expose a Maryland employer to civil penalties up to $10,000.
Sources
- Maryland State Archives (Maryland Manual On-Line): Chesapeake Employers' Insurance Company — Origin & Functionsprimaryretrieved 2026-07-27
- Maryland People's Law Library (Maryland Judiciary): Workers' Compensationindustryretrieved 2026-07-27
- Nolo: An Employer's Guide to Workers' Compensation in Marylandindustryretrieved 2026-07-27
Cost examples are illustrative national figures gathered from public filings and industry surveys. They are not quotes. Your actual premium depends on your state, carrier, revenue, payroll, location, and coverage selections. Restaurant Insurance Authority is an insurance marketing and referral service, not an insurer or licensed agency. We connect business owners with licensed independent commercial-lines agents who specialize in food and beverage. Questions? Call (855) 480-1410.
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