Maryland Home Improvement Contractor Bond

How much does a Maryland home improvement contractor bond cost?

The premium for a $30,000 home improvement contractor bond is $263 for a 2-year term.

The same low rate applies to all applicants when you purchase your bond through NNA Surety Bonds because no credit check is required.

Other bonding companies may require a credit check, which could affect your premium cost. The lower your credit score, the more you’ll pay for your bond.

What is a Maryland home improvement contractor bond?

The Maryland home improvement contractor bond is a surety bond required by the Maryland Home Improvement Commission (MHIC). To obtain state licensure, contractors operating in Maryland must purchase this bond if they do not meet MHIC financial solvency guidelines.

This license bond protects the public and ensures financial compensation should a contractor fail to abide by licensing laws.

Home improvement contractors in the state of Maryland must hold a bond amount of $30,000.

Why do I need a Maryland home improvement contractor’s license bond?

If you do not meet MHIC financial solvency requirements and are seeking licensure as a home improvement contractor in Maryland, you’re required to carry this bond.

More information on how to get state licensure as a Maryland home improvement contractor is provided by the Maryland Department of Labor.

How does a Maryland home improvement contractor bond work?

Before some Maryland contractors can become licensed, they must purchase a home improvement contractor surety bond. The bond helps ensure that the contractor who doesn’t meet personal net worth requirements will abide by Maryland Code, Business Regulation, Title 8, and meet all contractual agreements made on a project.

• If the principal (in this case, the contractor) fails to meet a project’s contractual agreements, a claim can be filed against the bond.
• If the claim is found to be proper, the surety (the company providing the bond) will compensate the claimant.
• In return, the principal will need to repay the surety. This ensures that the contractor is held to their financial responsibilities.

How do I get a Maryland home improvement contractor bond?

You can purchase the bond, also known as a Maryland contractor bond, by clicking here.

No credit check is required to purchase a Maryland home improvement contractor bond when you purchase it through NNA Surety Bonds. As soon as we receive your payment and contact information, your policy will be delivered, and all official bond documents will be sent to you electronically.