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Maryland Contractor License or Permit Bond

Maryland Contractor License or Permit Bond

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Who Requires the Contractor License or Permit Bond and Why Is It Needed?

Builder. Contractor License Bond for licensed contractors to ensure compliance with state or local regulations and statutes.

The surety bond is required by the Maryland Home Improvement Commission (MHIC) for home improvement contractors and the bond is issued for the benefit of the Maryland Home Improvement Guaranty Fund. The penal sum of the bond is $20,000 and it is needed to ensure compliance with the Annotated Code of Maryland, Business Regulation Article, Title 8, Home Improvement. The 2-year bond is required to obtain (and maintain) a Maryland contractors license for contractors engaged in home improvement and remodeling.

Local contractor bonds in Maryland are required for the following cities and counties; Baltimore, Calvert, Carroll, Hagerstown, Price George, and St. Mary's,

How Much Will My Surety Bond Cost?

Some Maryland Contractor License or Permit Bonds are offered completely online without a credit check or any paperwork. Surety Bonds Direct has access to the lowest bond prices available in the market for applicants with good credit and bad credit.

It only takes a couple minutes to provide us with the information required for a free, no-obligation quote. Or if you prefer, call 1‐800‐608‐9950 to speak with one of our friendly bond experts. We can help guide you through the bonding process and identify the lowest cost in the market for your situation.

If you are interested in spreading out the cost of your bond over time, we can offer convenient financing plans for many types of surety bonds. More information will be provided with your quote.

What Does the Bond Protect Against?

The bond protects the state of Maryland and the Home Improvement Guaranty Fund in the event that the Fund is damaged as a result of the principal’s non-compliance with the Maryland Home Improvement Law. The MHIC home improvement contractor surety bond ensures that the principal complies with Annotated Code of Maryland, Business Regulation Article, Title 8.

The aggregate of liability of the surety company under this bond for all payments from the Maryland Home Improvement Guaranty Fund due to violations of the Maryland Home Improvement Law by the principal is limited to $20,000. Renewals covered by the bond will establish a new surety bonding term. The surety company’s maximum liability is $20,000 per bonding period. This surety bond is issued for a 2-year term. It may be canceled at any time by the surety company with 30 days advance written notice provided to the Maryland Home Improvement Commission.

What is Needed to Obtain My License or Registration?

  • Provide evidence of at least two years of experience in home improvement work, construction and/or related education
  • Provide proof of financial solvency to the Commission which is judged based on the scope and size of business in relation to total assets, liabilities, and net worth along with a review of the credit report. Any applicant not meeting the Commission's financial solvency guidelines may furnish a surety bond or obtain an indemnitor.
  • Articles of incorporation and a Certificate of Good Standing from the Department of Assessments and Taxation must be submitted by corporations.
  • Ensure proposed trade names are available with the Commission and then register the name with the Department of Assessments and Taxation. A certificate of trade name registration must also be submitted with the license application.
  • Show proof of liability insurance coverage of $50,000. The insurance must be in effect at all times. Contractors are required to provide the Commission notice of cancellation of liability insurance at least 10 days before the effective date of the cancellation.
  • The license period is two years from the date of issuance of the original license.

Licenses can be renewed online from the Maryland Department of Labor, Licensing & Regulation Home Improvement Commission website.


List of Maryland surety bonds.

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