Maryland Contractor License Requirements & Application Help | Contractor Licensing Inc
Get step-by-step help with the Maryland contractor licensing process—classifications, experience, insurance, and bonds. Contractor Licensing Inc handles filings, and compliance.
Home improvement work in Maryland is licensed statewide by the Maryland Home Improvement Commission (MHIC), part of the Maryland Department of Labor. MHIC issues three separate license categories, and several counties and cities layer their own local contractor licenses on top.
Maryland Contractor License Requirements & Application Help
Contractor Licensing Inc. handles your MHIC application, exam registration, and required bond — and every bond link below goes to a working Artisan Insurance application.
Quick Answer
- MHIC licenses three categories: Contractor, Subcontractor, and Salesperson — each with different scope and requirements.
- General liability insurance of at least $500,000 is required, effective June 1, 2024.
- Financial solvency is required; contractors who don't meet it can instead post a $30,000 bond (with financials) or $100,000 bond (without).
- The Guaranty Fund covers homeowners up to $30,000 per claim, $250,000 total per contractor.
- Several Maryland counties and cities require their own separate local contractor bond.
Maryland's 3 MHIC License Categories
Straight from MHIC's own licensing structure: three distinct license types, each with a different scope of what you're allowed to do.
Contractor
Exam + Financials
The primary license — allows you to contract directly with homeowners for home improvement work. Requires at least 2 years of documented experience in home improvement work, construction, or related education, plus proof of financial solvency based on your business's assets, liabilities, credit, and net worth. Corporate applicants must submit articles of incorporation and a certificate of good standing.
Subcontractor
Exam Required
May only perform work for a licensed Contractor — a Subcontractor cannot enter into a contract directly with a homeowner. Requires passing the MHIC subcontractor exam.
Salesperson
Exam Required
Authorizes a person to sell home improvement work on behalf of licensed contractors. A Salesperson may represent up to two licensed Contractors at a time. Requires passing the MHIC salesperson exam.
Solvency, Bond & Insurance Requirements
Financial Solvency
MHIC evaluates each Contractor applicant's net worth, assets, liabilities, and creditworthiness relative to the size and scope of their business. There's no single fixed dollar figure — the bar scales with your business.
$30,000 Bond Option
If you can't demonstrate solvency on your own, a $30,000 surety bond is one path — but MHIC still requires financial statements alongside it.
$100,000 Bond Option
Posting a $100,000 surety bond instead waives the financial statement requirement entirely — often the faster path for newer businesses.
General Liability Insurance
Effective June 1, 2024, Section 8-302.1 of the Business Regulation Article requires every MHIC licensee to maintain general liability insurance of at least $500,000 — a major jump from the prior $50,000 minimum. Proof must be filed with your application, and MHIC must be notified at least 10 days before any policy cancellation.
Need a quote? Our sister company, Artisan Insurance Inc., writes Florida and multi-state contractor GL policies — get a quote here.
What Happens if a Job Goes Wrong
MHIC maintains a Guaranty Fund to reimburse homeowners for actual losses caused by a licensed contractor's acts or omissions — poor workmanship, incomplete work, or failure to perform. Under current law:
- Maximum award to one claimant: $30,000
- Maximum total awarded against one contractor: $250,000
- Fund must be maintained at a minimum balance of $1,000,000 statewide
- New licensees pay $100 into the fund; each two-year renewal adds $175
These caps rose from an older $20,000/$100,000 structure under a Maryland law change effective July 1, 2022 — some third-party sites still cite the outdated figures.
Maryland Contractor License FAQ
Do I need a contractor license in Maryland?
Yes — anyone doing home improvement work on a 1-3 unit residential property needs an MHIC license, regardless of project value, unless an exemption applies.
What are the MHIC license categories?
Contractor (contracts directly with homeowners), Subcontractor (works only for a licensed contractor), and Salesperson (can represent up to 2 licensed contractors).
How much does an MHIC license cost?
Fees increased August 1, 2024 — confirm the current schedule with MHIC. Historical fees were $250 (Contractor), $150 (Subcontractor), $100 (Salesperson), plus a $100 new / $175 renewal Guaranty Fund assessment.
What is the Home Improvement Guaranty Fund?
A consumer protection fund covering up to $30,000 per claimant and $250,000 total per contractor for losses caused by a licensee's acts or omissions.
Does Maryland require a contractor bond?
Only if you can't demonstrate financial solvency directly — then a $30,000 bond (with financials) or $100,000 bond (without) satisfies the requirement.
What insurance does Maryland require?
At least $500,000 in general liability insurance, effective June 1, 2024.
Board Contact
Maryland Home Improvement Commission
500 N. Calvert Street, Room 306, Baltimore, MD 21201
(410) 230-6309
Maryland Statewide Bonds
| Bond | Requires Financials? | Amount | |
|---|---|---|---|
| Maryland Home Improvement Contractor Bond | Yes | $30,000 | Apply Now |
| Maryland Home Improvement Contractor Bond (waives financials) | No | $100,000 | Apply Now |
Maryland City & County Bonds
Several Maryland jurisdictions require their own separate contractor bond in addition to (or instead of) the statewide MHIC bond, depending on trade and location.
| Jurisdiction & Bond | Trade | Amount | |
|---|---|---|---|
| Baltimore — Razing Contractor | Demolition | $10,000 | Apply Now |
| Calvert County — Contractor License | General | Varies | Apply Now |
| Carroll County — Plumbing & Utility Contractor | Plumbing / Utility | $2,500 | Apply Now |
| City of Frederick — Utility & Irrigation Contractor | Utility / Irrigation | $5,000 | Apply Now |
| City of Hagerstown — Building Contractors & Carpenters | Building / Carpentry | $20,000 | Apply Now |
| Frederick County — Plumbing Contractor | Plumbing | Varies | Apply Now |
| Prince George's County — Refrigeration & HVAC Contractor | HVAC / Refrigeration | $5,000 | Apply Now |
| Washington County — Utility Contractor | Utility | $2,000 | Apply Now |
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