Maryland Surety Bonds: What Your Agency or Court Requires

The Bond Agent is based in Maryland, at 3655A Old Court Rd, Suite 13, Baltimore, MD 21208. Most of the bond questions we get come from Maryland contractors, families going through probate, and businesses applying for a state license. This page explains the Maryland bonds people ask about most, what each one is for, and where the requirement comes from, so you know what to ask for before you apply.

How a surety bond works

A surety bond is a three-party agreement. You (the principal) buy the bond. The agency, court or project owner that requires it is the obligee. The surety is the company that issues it. If a valid claim is paid, the surety pays the claimant and then looks to you for repayment. A bond protects the public or the obligee. It is not an insurance policy that covers your own losses.

Maryland home improvement contractors (MHIC)

The Maryland Home Improvement Commission (MHIC), part of the Maryland Department of Labor, licenses home improvement contractors and salespersons. Two parts of the licensing process often get confused with a “license bond”:

Guaranty Fund assessment. Every licensed contractor pays into the MHIC Guaranty Fund: $100 with an original license and $175 at each two-year renewal. The Fund can compensate homeowners for actual losses caused by a licensed contractor, up to $30,000 per claimant.
Financial solvency. Applicants must show financial solvency (a credit report and a statement of judgments and pending actions). An applicant that doesn’t show a net worth equal to the Fund’s maximum per-claimant award must obtain a 2-year surety bond for that amount, currently $30,000, or use an indemnitor. MHIC publishes $30,000 and $100,000 bond forms.

So many Maryland home improvement contractors never need an MHIC bond, while others need one to qualify. We can help you figure out which applies before you file. MHIC also requires contractors to carry liability insurance. Check MHIC’s current minimum before you apply, since the amount has changed in recent years.

County and municipal bonds

Maryland counties and municipalities can require their own bonds for permits, right-of-way work, grading and site improvements. Requirements differ from Baltimore City to Baltimore County, Anne Arundel, Howard, Montgomery and Prince George’s. Your permit office or the agreement will name the bond form and amount. See Site Improvement Bonds.

Public construction projects

State agencies, counties and school systems commonly require bid, performance and payment bonds on public construction contracts. The solicitation documents state the amounts and forms. Learn more about Bid Bonds, Performance Bonds, Payment Bonds and Construction Bonds.

Probate and fiduciary bonds (Orphans’ Court)

In Maryland, estates are administered through the Register of Wills and the Orphans’ Court in each county and Baltimore City. A personal representative may be required to post a bond unless the will waives it or the court excuses it. Guardians and other fiduciaries can also be required to post bonds. See Executor Bonds, Administrator Bonds, Guardianship Bonds and Court Bonds.

Motor vehicle dealers

The Maryland MVA requires licensed vehicle dealers to post a surety bond. The amount depends on the license type and the dealer’s sales volume, so confirm your tier with the MVA’s dealer licensing unit before ordering. See Auto Dealer Bonds.

Notaries

Maryland does not require a notary bond for a notary commission. Some notaries choose errors and omissions insurance, which is a separate product.

Other Maryland bonds we help with

Freight broker (BMC-84) bonds required by FMCSA: Freight Broker Bond
Collection agency, mortgage and money transmitter bonds required by Maryland regulators: Collection Agency Bonds, Mortgage Bonds, Money Transmitter Bonds
ERISA fidelity bonds for employee benefit plans: ERISA Fidelity Bonds

What affects your premium

You pay a premium, typically a percentage of the bond amount, not the full amount. Sureties consider the bond type and amount, your personal and business credit, time in business, financial statements (for larger and construction bonds) and claims history. Applicants with credit challenges can often still be bonded, though terms may differ.

How to get started

Find the requirement in writing (license application, court order, contract or permit).
Note the obligee’s exact name, the bond amount and the required form.
Request a bond quote or call (410) 650-6020.
We submit your application to the surety and keep you updated. Approval and timing depend on surety underwriting.

FAQ

Does every Maryland home improvement contractor need a $30,000 bond? No. All MHIC contractors pay the Guaranty Fund assessment. A $30,000 bond is required only if the applicant doesn’t meet MHIC’s financial-solvency standard (or an indemnitor isn’t used).

Is the MHIC Guaranty Fund the same as a bond? No. The Guaranty Fund is a state fund paid for by contractor assessments. A bond is issued by a surety company for an individual contractor.

Do I need a bond to be a Maryland notary? No, Maryland doesn’t require a notary bond.

Can the court waive a probate bond? Often the will or the court can waive or reduce it. The Register of Wills or your attorney can confirm what applies to your estate.

How long does a bond last? It depends on the bond. Many license bonds run for the license term and renew. Court bonds generally stay in force until the court releases them.

Sources

Maryland Department of Labor, MHIC: labor.maryland.gov/license/mhic/ ; Forms & Fees: labor.maryland.gov/license/mhic/mhicaff.shtml ; Original application and bond forms: dllr.state.md.us/license/mhic/mhicapply.shtml
COMAR 09.08.01.19 (Financial Solvency): regs.maryland.gov/us/md/exec/comar/09.08.01.19
Maryland Register of Wills: registers.maryland.gov
Maryland MVA dealer licensing: mva.maryland.gov

The Bond Agent is operated by Joshua Feintuch, a licensed Maryland insurance producer (Feintuch Insurance LLC DBA Platinum Insurance). Last reviewed Oct 2026. General information only. Requirements change, so confirm with the obligee. Bond approval is subject to surety underwriting.