The Maryland Home Improvement Commission (MHIC) requires home improvement contractors to post a $20,000 surety bond as part of the licensing process to operate in the state. Some cities and counties including Baltimore, Carroll, Calvert, Hagerstown, Prince George's, and St. Mary's require their own specific surety bonds.
The surety company issuing the bond determines your premium rate, which is the percentage of the total bond amount you pay as the premium. During the application process, the surety company evaluates your personal credit, financial statements, industry experience, and licensing history. EZ Surety can issue premiums for Maryland contractor license bonds for as low as $100 for applicants with standard credit. If your credit is below average, we can still offer a competitive rate for your contractors license bond.
Contractor license bonds hold licensed contractors accountable for the quality of their work and protect the public from damages they’ve incurred due to the contractor’s violation of licensing laws.
When the surety company issues the bond, they provide a financial guarantee to the MHIC or the local municipality that the contractor will comply with the regulations set forth by the contractor license. If the contractor violates these regulations, causing a loss to the consumer, the consumer can file a claim against the bond.
If the claim is valid, the surety company will cover the costs to repair the damage up to the amount of the bond. The contractor is then liable to reimburse the surety company for all damages paid.
The State of Maryland does not require general contractors to obtain a license. However, various cities and counties may have their own licensing requirements.
The state only requires contractor licenses if you perform work involving home improvement, electrical, plumbing, or HVACR. The Maryland Department of Labor, Licensing and Regulation handles these licenses.
Because Maryland general contractor licenses are issued at the municipal level rather than the state, you'll need to check with your local municipality for any licensing requirements. Below is a brief overview of the steps you'll likely need to follow.