Maryland Home Improvement Contractor Bond
$263 for 2 Years – No Credit Check Required
General Information
The Maryland Home Improvement Contractor bond — also called the MHIC bond or Maryland contractor license bond — is a $30,000 surety bond required by the Maryland Home Improvement Commission from license applicants who cannot demonstrate financial solvency. The premium is $263 for the full two-year MHIC license term, with no application and no credit check required, and the bond is emailed within minutes of purchase.
Maryland Home Improvement Contractor Bond Pricing – $263 for the Full 2-Year Term
| Bond Amount | Term Length | Price | Credit Check Required |
|---|---|---|---|
| $30,000 | 2 Years | $263 | No |
Purchase Now
What You Need to Know About Maryland Home Improvement Contractor License Requirements
To obtain or renew a Maryland Home Improvement Contractor (MHIC) license — sometimes referred to as a Maryland contractor license — contractors must demonstrate financial solvency to the Maryland Home Improvement Commission. Solvency is evaluated on total assets, liabilities, a current credit report, and net worth, and the Commission assesses personal assets — business assets alone do not satisfy the requirement. Applicants who cannot meet the Commission's guidelines have two options: file a $30,000 surety bond along with financial statements, or file a $100,000 surety bond in lieu of providing any financial statements at all.
This page covers the $30,000 Maryland home improvement contractor bond, which is the option most contractors use. It is the state's official "Maryland Home Improvement Contractor's Bond" form and benefits the Maryland Home Improvement Guaranty Fund if a licensed contractor violates Maryland Home Improvement Law. By filing the bond, you agree to comply with the Annotated Code of Maryland, Business Regulation Article, Title 8. See MHIC details on financial solvency requirements.
The MHIC Bond and the Guaranty Fund Are Separate Requirements
This is the single most common point of confusion for Maryland contractors, so it is worth stating plainly: the Maryland home improvement contractor bond does not replace the Home Improvement Guaranty Fund. Every MHIC-licensed contractor pays into the Guaranty Fund, bond or no bond. The Fund compensates homeowners for actual losses caused by a licensed contractor who performs unworkmanlike, incomplete, or incorrect home improvement work, up to the amount paid to the contractor with a $30,000 maximum per claim.
The surety bond is an alternative to demonstrating financial solvency during the licensing process — nothing more. If you can show the Commission sufficient net worth, you may not need a bond at all. If you cannot, the bond satisfies that specific requirement while you remain subject to every other licensing obligation, including the Guaranty Fund.
How To Get a Maryland Home Improvement Contractor License
MHIC licenses are issued by the Maryland Home Improvement Commission, part of the Maryland Department of Labor's Division of Occupational and Professional Licensing. Below are the steps to get licensed.
- Register your business name. Check name availability with the Commission first, then register your trade name, partnership, or corporation with the Maryland Department of Assessments and Taxation and submit proof of acceptance. Corporations and LLCs must also submit Articles of Incorporation or Organization and a Certificate of Good Standing. Out-of-state corporations must register in Maryland and provide a Maryland resident agent.
- Document two years of experience. Provide proof of at least two years of experience in home improvement work, construction, or related education. The Commission evaluates this case by case, and trade school or community college coursework can count toward the requirement.
- Pass the MHIC licensing exam. The exam covers Maryland home improvement law and regulations and is administered by PSI Exams (1-800-367-1565). A score of at least 70% is required to pass, and you must pass before submitting your application.
- Demonstrate financial solvency or file a surety bond. Submit a current credit report dated within 90 days along with your financial documentation. If you cannot meet the Commission's solvency guidelines, file a $30,000 surety bond with your financial statements, or a $100,000 bond in lieu of financial statements. BondAbility issues the $30,000 Maryland home improvement contractor bond instantly for $263 with no application or credit check.
- Obtain general liability insurance. Maryland requires at least $500,000 in general liability coverage effective June 1, 2024. Your certificate must name both the individual applicant and the company, and must list the Maryland Home Improvement Commission as certificate holder at 500 N. Calvert Street, Room 306, Baltimore, MD 21202.
- Submit your application. File your completed application with the Commission along with your bond or financial statements, proof of insurance, credit report, experience documentation, and any required conviction records. The Commission reviews all felony convictions, drug offenses committed after January 1, 1991, and misdemeanors related to home improvement transactions.
Why Buy Your Maryland Home Improvement Contractor Bond From BondAbility
- One price, every applicant. $263 for the full two-year term whether your credit is excellent or damaged. Providers that underwrite this bond quote $263 to $900 or more based on your score.
- No credit pull. Buying your Maryland home improvement contractor bond here puts no inquiry on your report — which matters, since the MHIC requires a current credit report dated within 90 days as part of your license application.
- No application to complete. Enter your contractor name, business name and address, and license number. That is the entire process.
- Issued in minutes. Your bond arrives by email ready for signature, so it does not hold up the rest of your MHIC filing.
Frequently Asked Questions
Who requires the Maryland Home Improvement Contractor bond?
The Maryland home improvement contractor bond is required by the Maryland Home Improvement Commission (MHIC) from license applicants who cannot demonstrate financial solvency. Applicants who meet the Commission's net worth guidelines may not need a bond at all.
How much does the MHIC bond cost?
The premium is $263 for the full 2-year term. Every applicant qualifies for that rate because no credit check is required. Note that $30,000 is the bond amount — the coverage guaranteed to the state — not a cost to you.
Does the MHIC bond replace the Home Improvement Guaranty Fund?
No. All MHIC-licensed contractors pay into the Guaranty Fund regardless of whether they file a bond. The bond is an alternative to demonstrating financial solvency during licensing, not an alternative to the Fund. The two are separate requirements.
What is the difference between the $30,000 and $100,000 Maryland bond?
The $30,000 bond is filed by applicants who do not meet the MHIC financial solvency guidelines, and those applicants must still submit financial statements. The $100,000 bond may be filed in lieu of providing any financial statements at all, which some applicants prefer in order to skip the financial disclosure process entirely.
Is a credit check required?
No. BondAbility issues the $30,000 Maryland home improvement contractor bond at a flat $263 with no application and no credit check. Providers that run credit typically charge $263 to $900 or more depending on credit score.
What is the bond term length?
The bond covers the full two-year MHIC license term, matching the license period. A renewal or continuation certificate is required when you renew your license.
How much general liability insurance do I need?
Effective June 1, 2024, section 8-302.1 of the Business Regulation Article requires all Maryland home improvement contractors to carry at least $500,000 in general liability insurance. This replaced the previous $50,000 minimum, so older guidance you may find online is out of date.
How quickly will I receive my bond?
Your MHIC bond is issued and emailed within minutes of purchase, ready for your signature.
Do I need a new bond when I renew my MHIC license?
Your Maryland home improvement contractor bond must remain in force for the full two-year license period, and the Commission requires a renewal or continuation certificate at renewal. If your financial position has improved enough to meet the solvency guidelines on its own, you may be able to submit updated financial statements instead and skip the bond — worth checking before you renew rather than assuming it carries forward.
What happens if my Maryland home improvement contractor bond lapses?
A gap in bond coverage can interrupt your license status with the Maryland Home Improvement Commission, since the bond is what satisfies your financial responsibility requirement. Renew before your current term expires to avoid a lapse.
Bond Details at a Glance
- Bond Name: Maryland Home Improvement Contractor's Bond (MHIC Bond)
- Bond Amount: $30,000
- Price: $263 for the full 2-year term
- Credit Check: Not required
- Obligee: Maryland Home Improvement Commission (MHIC)
- Address: 500 N. Calvert Street, Room 306, Baltimore, MD 21202
- Governing Law: Annotated Code of Maryland, Business Regulation Article, Title 8
- Alternate Option: $100,000 bond in lieu of filing financial statements
- Delivery: Emailed within minutes of purchase
- Renewal Document: Renewal/Continuation Certificate required
Additional Resources for Home Improvement Contractors
- Maryland Home Improvement Commission (MHIC) Website
- MHIC – Apply for an Original License
- Maryland Home Improvement Statute Information
- Original and Follow-up Documents for MHIC Contractors
Renewing Your Maryland Home Improvement Contractor Bond
MHIC licenses run on a two-year cycle, and your Maryland home improvement contractor bond must stay in force for the full license period. When you renew your license with the Maryland Home Improvement Commission, the Commission requires a renewal or continuation certificate confirming the bond remains active for the new term.
If you were bonded for your original license because you could not meet the financial solvency guidelines, you will generally need a bond again at renewal unless your financial position has changed enough to satisfy the Commission on its own. Contractors whose net worth has grown since their first application can submit updated financial statements instead and may no longer need a bond at all — it is worth reviewing before you renew rather than assuming the bond carries forward automatically.
Renewing your Maryland home improvement contractor bond through BondAbility works the same as a new purchase: $263 for the full two-year term, no credit check, no application, emailed within minutes. Do not let your bond lapse between terms, since a gap in coverage can interrupt your license status with the Commission.