Legal Question in Insurance Law in Maryland

Re: workmens compensation insurance

You need workers comp. insurance by law if you have employees. The contractor's concern (and that of its insurer) is the "statutory employer" doctrine which provides that contractors up the chain to the general contractor are deemed to be the employers of the employees of subcontractors, so that if you don't have insurance (no matter how many employees), they are liable. This would not be the case if you have NO employees, just you, and you are not incorporated or working as any entity other than a sole proprietor. However, the contractor is also probably concerned about reclassifying small subs as employees. If you are hurt or killed, they are worried that you or your estate could file a claim against their insurance if you don't have your own. The bottom line is that even if you are not legally required to have such insurance, the contractor can decline to do business with you if you don't have WC insurance.