Maryland Contractor License Bond

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What is a contractor license bond in Maryland?

Maryland law states that home improvement contractors must obtain a contractor license bond. Several cities and counties may also require contractors to secure a surety bond to complete a construction project in local areas.

Maryland contractor license bonds ensure contractors act as legally compliant professionals, following all rules and regulations regarding building codes, taxes, etc. If a contractor breaks the law, the surety bond helps protect parties that suffer harm or experience devastating financial effects.

Maryland contractor license bonds are contracts between three entities: 

  • The contracted company (the principal)
  • The city requiring the bond for the work taking place in their area (the obligee)
  • An organization taking on the responsibility for incidents that may occur (the surety)

Learn more about how contractor license bonds work in our complete guide.

Get a Maryland Contractor License Bond:

Maryland Contractor License Bonding Requirements

Home Improvement Contractor Definition

According to the Maryland Code Business Regulation, “home improvement” includes the addition to or alteration, improvement, conversion, modernization, repair, replacement, or remodeling of a building or part of a building used or designed as a dwelling place, residence, or structure adjacent to that building. 

State License Bond Requirements

Maryland contractors completing various types of home improvement-related projects, such as plumbing, roofing, and electrical, may need to obtain a surety bond to become licensed.

Home improvement contractors may secure a $20,000 license bond for proof of financial solvency in the state license application. The obligee, in this case, would be the Maryland Home Improvement Commission (MHIC)

Local License Bond Requirements

To complete a construction project in a city or county in Maryland, you may need to post a surety bond first. The amount varies based on location, but you will pay a small percentage of the total bond requirement. The better your credit score is, the lower your premium may be. Expect to pay as little as 1-3% of the total bond amount if you have excellent credit.

If you plan to operate your business in Maryland, check with your local governing organization (or contact ZipBonds) to understand when you’ll need a Maryland contractor license.

Get Your Contractor License Bond in Maryland

ZipBonds is the fastest and most secure option for getting bonded. Our all-digital platform is intuitive and straightforward. Apply online, email or call 888.435.4191 to speak with an agent directly.



Founders Ryan Swalve and Zach Mefferd formed the vision for when they realized how overly complicated it was to help clients place surety. The frustration of being unable to incorporate the technology they’d used in other insurance-focused projects left them thinking “there has to be a better way.”

Fast forward a couple of years, and that better way is the impetus of everything we do at ZipBonds. We constantly look for innovative ways to improve the bonding process for our clients and agents. Our team comprises individuals who understand all angles of surety – for companies, agencies, and individuals. Incorporating everyone’s point of view to improve the process while simultaneously integrating cutting-edge technology is what sets our business apart.