Find the Best Business Insurance Options in Maryland
Every business in Maryland, regardless of size, needs to be equipped with a business insurance policy. Having business insurance can mean the difference between success and failure for a business after major disasters like employee theft, lawsuits, fires, vandalism, and more.
Maryland currently has about 594,000 small businesses that need their own coverage. Further, Maryland's 1.1 million small business employees are in need of protection by their employer's workers' compensation coverage. An independent insurance agent in Maryland can help your business get set up with the right kind of business insurance. For starters, though, here's a deeper breakdown of business insurance options and requirements in the state of Maryland.
Best Business Insurance Companies in Maryland
While you can find business insurance from many different insurance companies in Maryland, a few select carriers rise to the top of the list. We've compiled a few of our picks for the best business insurance companies in Maryland for your convenience. When you're ready to find coverage, start with these top contenders, first.
- Nationwide: Nationwide has a huge catalog of coverages in addition to business insurance. The carrier also has excellent ratings from both AM Best and the Better Business Bureau (BBB) and offers 24/7 claims reporting.
- Amica: Amica is an older, well-established company that also sells a ton of small business insurance products along with personal coverages. They're rated "A+" by AM Best.
- Allstate: Allstate is one of the largest insurance companies in the US and offers a wide variety of personal and business insurance products. The carrier works with independent insurance agents and is rated "A+" by AM Best.
- Progressive: Progressive offers a large catalog of insurance coverages, including business insurance. The carrier has excellent financial strength and offers 24/7/365 customer service. Progressive is also known for offering many discount options.
A Maryland independent insurance agent can help you find the business insurance you need from one of these top carriers.
Maryland Business Insurance Requirements
The only coverage required by Maryland state law is workers' compensation insurance, for any business with employees. However, all businesses in the state might still want to consider getting a larger business insurance policy to protect them against a number of different threats. A business could face serious financial consequences without general liability insurance in case of a lawsuit. You could also stand to lose all your business's property after a major disaster if you lack commercial property insurance. That said, the only coverage mandated by the state is workers' comp.
Every business in Maryland that has at least one employee must have workers' compensation insurance by state law. So the only state-required business insurance coverage is:
Optional business insurance coverages in Maryland include:
- Business income insurance
- Professional liability insurance
- Cyber liability insurance
- Commercial general liability insurance
- Commercial property insurance
- Commercial auto insurance
A Maryland independent insurance agent can help you find the right workers' compensation and other business insurance coverage you may need.
What Business Insurance Covers in Maryland
What your business insurance policy covers in Maryland depends on the type of coverage you choose. Ideally, your business insurance policy will have several different coverages to protect various aspects of your business, including property and inventory, income, employees, vehicles, cyber risks, and more. With a commercial auto policy, your business gains financial protection against lawsuits related to accidents, as well as the ability to repair or replace company vehicles after an incident like fire, vandalism, theft, etc. Having business income insurance is also helpful to replace lost income if your business must close after a covered disaster like a fire. But depending on the coverages in your specific business insurance policy, your company may or may not have all of these protections.
Liability Coverage Options for Small Businesses in Maryland
All businesses in Maryland most likely want to be equipped with at least general liability insurance. Still, there are other critical liability coverages to consider, and they each protect your business in a different way. The three major types of liability coverage are:
- Professional liability insurance: Reimburses legal costs if your business gets sued by a third party for claims of improper advice or services performed in a way that caused injury or loss.
- Commercial general liability insurance: Reimburses losses caused by third-party lawsuits filed against your business for claims of personal property damage or bodily injury.
- Cyber liability insurance: Reimburses losses related to data breaches and other cyber threats that can lead to the exposure of sensitive or private data and information, including customer credit card numbers.
A Maryland independent insurance agent can help you find the right kind of liability coverage for your unique business.
Property Coverage Options for Small Businesses in Maryland
If your business has a storefront or office building, or inventory that would be expensive to replace, you'll want to consider getting property insurance.
- Commercial property insurance: Reimburses losses caused by theft or vandalism, or other threats that damage or destroy your business's property, including its building and inventory.
Your independent insurance agent in Maryland can help you find the right kind of property coverage for your business.
Other Insurance Options for Small Business Owners in Maryland
Beyond liability and property coverage, there are still other types of business insurance to consider. A couple of additional major coverages needed by many businesses in Maryland are:
- Business income insurance: Reimburses your business for lost income caused by closures following covered disasters, such as fire damage.
- Commercial auto insurance: Reimburses your business for losses related to company vehicles, including lawsuits after accidents, theft or vandalism, and more.
An independent insurance agent in Maryland can help you get set up with all the additional business insurance coverages your company may need.
Average Cost of Business Insurance in Maryland
Business insurance costs in Maryland vary depending on the types of coverage you purchase, policy coverage limits, and other options. Still, other factors like your business's exact location and size impact your rates, as larger businesses require more coverage by nature. If your business is located along the coast, its coverage is also likely to be more expensive due to the increased risk of storm damage. Also, the type of business you run, along with its specific risks and operations, impacts business insurance costs because the more risks your company has, the more costly it will be to insure. A business with a higher risk level, such as one in the construction industry, will pay much more for coverage than a small clothing store.
National Business Insurance Stats
Number of businesses in the US: 30,819,176
Burglary rate per 1,000 residents in the US: 3.76
Auto theft rate per 1,000 vehicles in the US: 2.29
| City | No. of businesses | Burglaries / 1,000 people | Auto thefts / 1,000 cars |
| Aberdeen | 1,099 | 3.71 | 0.74 |
| Annapolis | 5,426 | 2.49 | 2.34 |
| Baltimore | 50,735 | 9.07 | 6.59 |
| Bethesda | 10,713 | 2.32 | 1.12 |
| Bowie | 5,718 | 0.93 | 1.39 |
| Cambridge | 1,069 | 11.25 | 1.14 |
| Columbia | 10,644 | 4.08 | 2.8 |
| Elkton | 1,428 | 6.96 | 3.38 |
| Frederick | 6,897 | 1.92 | 0.69 |
| Hagerstown | 3,740 | 5.94 | 2.68 |
| Hyattsville | 2,065 | 2.95 | 3.38 |
How Does Your Maryland City Measure Up?
Property: The property crime rate in Baltimore is higher than the national average. Property insurance in less safe areas can sometimes be more expensive, so keep that in mind when you're looking at insurance options.
Commercial auto: If your business owns a vehicle or a fleet of vehicles, you will need commercial auto insurance. Your rates will be based on a number of factors, including the number and types of vehicles you are covering and the risk of collisions and vehicle theft in your city.
Workers’ compensation: Workers’ compensation insurance pays for medical bills and lost wages for workers who are injured on the job. It's required for most Maryland employers with employees. Every workplace has unique risks and hazards for its workers, which is why workers' compensation rates vary significantly depending on your industry.
Based on a $100,000 annual payroll, here is what the workers' comp costs for the two leading industries in Baltimore, MD look like.
Educational Services Industry: $370/year
Retail Trade Industry: $1,160/year
Property: A criminal act like a break-in, theft, or arson can occur at a moment's notice. Your business needs property coverage to protect against these risks and more that could cause damage to your property, or result in theft.
Commercial auto: Because Bethesda is so close to Washington DC, auto owners here can see unexpectedly high theft rates. If your business owns a vehicle or a fleet of vehicles, you'll need commercial auto insurance that protects against unique risks and provides enough coverage so you feel peace of mind when it comes to your company cars.
Workers’ compensation: Workers’ compensation insurance pays for medical bills and lost wages for workers who are injured on the job. It's required for most Maryland employers with employees. Every workplace has unique risks and hazards for its workers, which is why workers' compensation rates vary significantly depending on your industry.
Based on a $100,000 annual payroll, here is what the workers' comp costs for the two leading industries in Bethesda, MD look like.
Professional, Scientific, and Technical Services Industry: $370/year
Public Administration Industry: $280/year
Property: Bowie has higher-than-average crime rates, which can cause your insurance rates to be higher than in other cities.
Commercial auto: Your commercial auto insurance rates will be based on a number of factors, including the number and types of vehicles you are covering and the risk of collisions and vehicle theft in your city.
Workers’ compensation: Workers’ compensation insurance pays for medical bills and lost wages for workers who are injured on the job. It's required for most Maryland employers with employees. Every workplace has unique risks and hazards for its workers, which is why workers' compensation rates vary so significantly depending on your industry.
Based on a $100,000 annual payroll, here is what the workers' comp costs for the two leading industries in Bowie, MD look like.
Public Administration Industry: $280/year
Professional, Scientific, and Technical Services Industry: $370/year
Property: In addition to severe weather events, property crimes like theft and arson can lead to large business losses if you do not have the right insurance. The crime rate in Columbia can also affect your coverage rates, so your coverage may be more expensive than in other areas.
Commercial auto: Your commercial auto insurance rate depends on a variety of factors, such as the number of vehicles you are covering and the risk of vehicle theft in your city.
Workers’ compensation: Every business insurance policy comes standard with workers’ compensation insurance. If the workers’ compensation cost for your business is higher than average, this could add to your overall business insurance cost.
Based on a $100,000 annual payroll, here is what the workers' comp costs for the two leading industries in Columbia, MD look like.
Professional, Scientific, Technical Services Industry: $370/year
Public Administration Industry: $280/year
Property: Be aware that the crime rate in Frederick can affect how much you pay for commercial property insurance. You need the right amount of protection for the specific risks you face.
Commercial auto: If your business owns a vehicle or a fleet of vehicles, you'll need commercial auto insurance. Your rates will be based on a number of factors, including the number and types of vehicles you are covering and the risk of collisions and vehicle theft in your city.
Workers’ compensation: Workers’ compensation insurance pays for medical bills and lost wages for workers who are injured on the job. It's required for most Maryland employers. Every workplace has unique risks and hazards for its workers, which is why workers' compensation rates vary significantly depending on your industry.
Based on a $100,000 annual payroll, here is what the workers' comp costs for the two leading industries in Frederick, MD look like.
Retail Trade Industry: $1,160/year
Construction Industry: $4,520/year
Property: Your business needs the right insurance to protect against property crimes. A break-in, theft, or arson can happen when you least expect it, and you shouldn't have to deal with the resulting financial burden.
Commercial auto: Whether your business owns a single pickup truck or a fleet of luxury vehicles, you need commercial auto insurance. But remember your rate is based on numerous factors. The types of cars, your city's auto theft rate, and your average usage will impact how much you pay.
Workers’ compensation: Workers’ compensation insurance pays for medical bills and lost wages for workers who are injured on the job. It's required for most Maryland employers with employees. Every workplace has unique risks and hazards for its workers, which is why workers' compensation rates vary significantly depending on your industry.
Based on a $100,000 annual payroll, here is what the workers' comp costs for the two leading industries in Gaithersburg, MD look like.
Professional, Scientific, and Technical Services Industry: $370/year
Public Administration Industry: $280/year
Property: Since the crime rate in Glen Burnie can affect your coverage rates, it's important to know what you're up against and how likely it is you will be affected.
Commercial auto: Glen Burnie is generally a safe community, but accidents and criminal acts can happen when you least expect it. So, keep that in mind when you're looking to protect your company cars.
Workers’ compensation: Workers’ compensation insurance pays for medical bills and lost wages for workers who are injured on the job. It's required for most Maryland employers. Every workplace has unique risks and hazards for its workers, which is why workers' compensation rates vary significantly depending on your industry.
Based on a $100,000 annual payroll, here is what the workers' comp costs for the two leading industries in Glen Burnie, MD look like.
Retail Trade Industry: $1,160/year
Construction Industry: $4,520/year
Property: Business property can be damaged by several threats. Severe weather events, crimes like theft, and unexpected fires can all lead to property damage or destruction. But all of these situations can lead to large business losses if you don't have the right insurance.
Commercial auto: Does your company own a vehicle or two? If so, commercial auto insurance should be on your mind. Your rates will be based on a number of factors and will be designed to meet your unique needs.
Workers’ compensation: Workers’ compensation insurance pays for medical bills and lost wages for workers who are injured on the job. It's required for most Maryland employers with employees. Every workplace has unique risks and hazards for its workers, which is why workers' compensation rates vary significantly depending on your industry.
Based on a $100,000 annual payroll, here is what the workers' comp costs for the two leading industries in Hagerstown, MD look like.
Manufacturing Industry: $3,450/year
Retail Trade Industry: $1,160/year
Property: Severe weather events, property crimes, and unexpected fires can lead to large business losses if you do not have the right insurance. The crime rate in Rockville is higher than average, which could affect your insurance rates. Know what risks you face as a business owner to get the right amount of coverage to adequately protect yourself.
Commercial auto: Your neighborhood's crime rates impact commercial auto insurance rates, too. As a business owner, you need to protect your parked vehicles and your employees while they're on the road.
Workers’ compensation: Workers’ compensation insurance pays for medical bills and lost wages for workers who are injured on the job. It's required for most Maryland employers that have employees. Every workplace has unique risks and hazards for its workers, which is why workers' compensation rates vary significantly depending on your industry.
Based on a $100,000 annual payroll, here is what the workers' comp costs for the two leading industries in Rockville, MD look like.
Professional, Scientific, and Technical Services Industry: $370/year
Construction Industry: $4,520/year
Property: A number of unexpected events could cause financial and emotional stress to your business. Having the right insurance and limits in place will keep you protected from whatever may come your way, such as property crime or theft.
Commercial auto: The auto theft rate impacts how much you pay for commercial auto insurance. But so do various other factors, like how many cars you're insuring as well as their makes and models.
Workers’ compensation: Workers’ compensation insurance pays for medical bills and lost wages for workers who are injured on the job. It's required for most Maryland employers with employees. Every workplace has unique risks and hazards for its workers, which is why workers' compensation rates vary significantly depending on your industry.
Based on a $100,000 annual payroll, here is what the workers' comp costs for the two leading industries in Waldorf, MD look like.
Public Administration Industry: $280/year
Construction Industry: $4,520/year
Popular Questions About Business Insurance in Maryland
The cost of business insurance in Maryland varies depending on a number of factors. These factors include your business's size and industry, how many employees you have, your business's location, claims history, and more.
Workers' compensation is the only kind of business insurance required by Maryland state law. Businesses with at least one employee must carry this coverage.
What business insurance covers in Maryland depends on the exact coverages you select to go into your policy. But a full business insurance policy should cover your business property, company vehicles, lost income, cyber risks, employees, professional errors, lawsuits, and more.
Small business general liability insurance in Maryland covers lawsuit costs if your business gets sued by a third party for claims of personal property damage or bodily injury. Attorney, court, and settlement fees can be covered by general liability insurance.
Yes, if your small business has 50 or fewer employees, it can qualify for a state health insurance plan through the Maryland Health Connection. Your business may also qualify for tax credits on this coverage, depending on its size. Find out more information on the state's official website.
Our research found that the best small business insurance companies in Maryland are Nationwide, Amica, Allstate, and Progressive. These companies earned our top picks based on financial strength, coverage options, rates, and more.
Do You Know What Your Business Insurance Covers in Maryland?
https://wallethub.com/business-insurance/maryland