Who this applies to
Home improvement contracting in Maryland requires a license from the Maryland Home Improvement Commission (MHIC) [4]. The bond reaches fewer people than the license does. It is aimed at an applicant or licensee that does not demonstrate a net worth equal to the maximum award the Home Improvement Guaranty Fund can make to one claimant for the acts or omissions of one contractor [1]. The statute caps that award at $30,000 [2], so the same figure sets both the net worth that passes the test and the size of the bond that stands in for it.
A contractor below that line has two routes, according to the Commission's application page [5]:
That page links two official bond forms, one for $30,000 and one for $100,000 [5]. The regulation does not say when the larger form applies, so which form a particular application calls for is the Commission's to confirm.
What the rule says
The regulation, COMAR 09.08.01.19, carries no dollar figure of its own: it requires a 2-year surety bond "for that amount", meaning the maximum Fund award [1]. The number comes from section 8-405(e)(1) of the Business Regulation Article, which caps an award at $30,000 to one claimant for the acts or omissions of one contractor [2], so the bond follows the statutory cap rather than a sum written into the rule. Once filed, it stays required until the Commission authorizes cancellation on proof of sufficient net worth [1].
How to comply
- Start with the solvency test. Demonstrating a net worth equal to the maximum award meets the rule without a bond; falling short leaves a choice between a surety bond and an indemnitor [5].
- On the bond route, the filing is one of the Commission's official forms. MHIC's pages begin at labor.maryland.gov/license/mhic.
- Keep the bond in force: its term is 2 years [1], and ending it takes the Commission's authorization.
The bond runs to the Commission for the benefit of the Home Improvement Guaranty Fund, which compensates homeowners up to $30,000 [6]. Every licensee pays into that fund whether or not it files a bond: $100 for an original contractor and $175 every two years on renewal, per the Commission [6]. Section 8-302.1 of the Business Regulation Article adds a general liability insurance requirement of at least $500,000 for all licensed contractors [3].
What changed recently
COMAR 09.08.01.19 was most recently amended effective June 23, 2025 [1]. That date belongs to the regulation, which holds the solvency test, the bond term and the cancellation condition; the $30,000 cap is set in the statute [2].
Related
Run Maryland's figure through the contractor license bond cost calculator, or compare it with all states' bond requirements.