Various regulatory authorities in Maryland require surety bonds in order for certain professionals, contract workers, and companies to do business in the state. For instance, MD title service agents, title insurance producers, vehicle dealers, mortgage lenders, credit services companies, consumer/installment loan agencies, and collection agencies are all required to be bonded.
In Maryland, bonding and licensing is done at the state level, which simplifies the process of determining the correct bond for your business or profession. Various state agencies determine the bond coverage amount—also known as the “penal sum." This bond size is one factor in determining the cost of your premium, along with a check of your personal and business credentials.
If you’re looking for a surety bond that meets MD state requirements for your industry, our bonding specialists can help. NNA Surety Bonds has been providing affordable surety bonds to companies and individuals across the United States since 1957.
Also known as a collection agency surety bond, this licensee bond puts your debt collection business under obligation to act ethically and legally when retrieving debt payments from an individual or company. Maryland requires a surety bond amount between $5,000 and $25,000, which can be obtained for a premium as low as $100 annually (based on a $5,000 liability).
Maryland’s Department of Labor requires credit service businesses to post a $50,000 credit services surety bond. (This amount was raised from $12,000 on January 1, 2019).
The bond’s purpose is to ensure that companies in the credit repair business comply with the Maryland Credit Services Businesses Act. It provides a means of financial redress to the state and to your customers should they suffer losses as a result of wrongful actions by your credit services company.
Your annual premium for this bond will vary based on personal credit rating and business experience, but it could be as low as 1% of the bond’s full coverage amount (or $500).
The state’s Department of Labor requires mortgage lenders to post a surety bond in order to protect the state or your customers should they suffer financial losses as a result of improper actions by your business. Bond coverage amounts range from $50,000 to $150,000 depending on your annual loan volume, with premiums for qualified applicants in the range of 0.75% to 3%. For example, premiums for a $50,000 mortgage lender bond would range from $375 to $1,500.
As a motor vehicle dealer in Maryland, you must post a surety bond in the liability amount ranging from $15,000 to $300,000, depending on your sales volume.
Whether your dealership sells new or used vehicles and trailers, an auto dealer bond is required to operate in Maryland. This is to protect buyers from financial harm stemming from any fraudulent or illegal actions by your dealership.
With good credit and financial history, your annual premium for this bond could range from $150 to $3,000, depending on the liability amount required.
Title insurance is a vital service in the real estate business, shielding property buyers from potential disputes over old liens, unpaid taxes, disputed boundaries, and the like. Often called a title agency surety bond, this $150,000 policy is a legal tool used by Maryland’s Insurance Administration to encourage title insurance producers to act lawfully and ethically.
This bond protects your clients and the state by providing a way for them to collect damages in case of wrongful actions by your agency. Title agents with excellent credit can pay an annual bond premium of only $750.
Title service agents are independent retail agents who perform many of the duties usually covered by DMVs in other states, such as auto title transfers, vehicle registration, and driver’s license renewals.
Maryland title service agents are required to post a $50,000 title service agent bond as a condition of holding a business license. The bond is meant to encourage accurate record keeping and lawful behavior. In case of a violation of laws or the surety bond contract by you, the title service agent, this bond serves as a mechanism for the state and consumers to file claims up to the total bond amount.
NNA Surety Bonds provides this $50,000 policy to Maryland title service agents for a premium as low as $500 annually.
|Bond Name||Coverage Amount||Cost
|Collection Agency Bond||$5,000–$25,000||$100*||Maryland Department of Labor – Collection Agency Licensing Board|
|Credit Services Business Licensee Bond||$50,000||$500*||Maryland Department of Labor|
|Mortgage Lender Licensee Bond||$50,000/$100,000/$150,000||Varies*||Maryland Department of Labor|
|Motor Vehicle Dealer Bond||$15,000–$300,000||$150–$3,000*||Maryland Motor Vehicle Administration|
|Title Insurance Producer||$150,000||$750||Maryland Insurance Administration|
|Title Service Agent Bond||$50,000||$500||Maryland Motor Vehicle Administration|
* Cost can vary depending on the bond amount required and your credit rating
Our knowledge of state bond requirements allows us to provide accurate quotes quickly. For guidance through the process of selecting or renewing surety bonds in Maryland, talk to one of our experts today.