Maryland Contractor License Bonds

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Maryland Contractor License Bonds


Contractor license bonds protect the public from financial harm resulting from violations of licensing law committed by the contractor and their employees.

The State of Maryland requires contractors to obtain specific surety bonds correlating with their license type. We have compiled comprehensive guides on these bonds to assist insurance agents in obtaining Maryland contractor license bonds for their customers. Below are all of the contractor licensing bonds required by the State of Maryland:

  • Maryland Home Builder 

    • Lowest Cost: 1.5% of the bond amount *Monthly subscription options available
    • Bond Amount: Determined by the MCPD on a case-by-case basis
    • Who Needs It: All individuals and business entities seeking to obtain a Home Builder Registration in the State of Maryland
  • Maryland Sewage Sludge Utilization Performance

    • Lowest Cost: 1.5% of the bond amount *Monthly subscription options available
    • Bond Amount: Is determined by the proposed utilization of the sewage sludge
      • $10,000 for transportation or marketing
      • $30,000 for land application on agricultural land
      • $50,000 for land application on marginal land
      • $75,000 for innovative project
      • $125,000 for in-State sewage sludge treatment, composting, storage, or distribution facility
    • Who Needs It: All individuals and business entities seeking to obtain a Sewage Sludge Utilization Permit in the State of Maryland
  • Maryland Home Improvement Contractor

    • Lowest Cost: $360 for a 2-year term or $18 per month
    • Bond Amount: $20,000
    • Who Needs It: All individuals and business entities seeking to obtain a Home Improvement Contractor License in the State of Maryland and who do not meet the financial solvency requirements set forth by the Maryland Home Improvement Commission

How Can an Insurance Agent Obtain a Surety Bond for Their Customer?

BondExchange makes obtaining a surety bond easy. Simply login to your account and use our keyword search to find the “contractor” bond in our database. Don’t have a login? Gain access now and let us help you satisfy your customers’ needs. Our friendly underwriting staff is available by phone (800) 438-1162, email or chat from 7:30 AM to 7:00 PM EST to assist you.

At BondExchange, our 40 years of experience, leading technology, and access to markets ensure that we have the knowledge and resources to provide your clients with fast and friendly service whether obtaining quotes or issuing bonds.

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What Other Insurance Products Can Agents Offer Contractors in Maryland?

Maryland requires contractors to purchase liability insurance. Bonds are our only business at BondExchange, so we do not issue any form of insurance, but our agents often utilize brokers for this specific line of business. A list of brokers in this space can be found here.

Maryland Contractor License Bonds