Marylandcontractor insurance & bonding requirements
Updated April 2026 · Source: MD Home Improvement Commission — Business License
Minimum requirements
- General liability
- $1,000,000
- Auto liability
- $500,000
- Surety bond
- $20,000
- Workers' comp
- Required for crews
Licensed general contractors in Marylandcarry commercial insurance so that if a crew member gets injured on-site, a homeowner's appliance is damaged during demo, or a neighboring property suffers an impact from construction, the contractor's policy (not the homeowner's) pays the claim. AskBaily does not match homeowners to contractors below these minimums.
MHIC Home Improvement Contractor license + $20K bond.
Common questions
What insurance does a Maryland general contractor need?
A Maryland general contractor needs at minimum $1,000,000 general liability coverage plus $500,000 auto liability. Workers' compensation insurance is required for crews. Per MD Home Improvement Commission — Business License.
How much is the surety bond for Maryland contractors?
Maryland requires a minimum $20,000 surety bond at the license level. Some project-size tiers or local authorities require additional project-specific bonds. See MD Home Improvement Commission — Business License for the current schedule.
Who is the licensing authority in Maryland?
MD Home Improvement Commission — Business License is the authority for Maryland contractor oversight. Public license lookup is available at https://www.dllr.state.md.us/license/mhic/.
How does AskBaily verify contractors in Maryland?
AskBaily runs automated verification against MD Home Improvement Commission — Business License before a contractor is matched to a homeowner project. The pro's license number is validated live at signup.
What happens if a contractor doesn't carry the required insurance?
Underinsured contractors are removed from the AskBaily match pool immediately. A homeowner who hires an unlicensed or underinsured contractor in Maryland can lose the right to mechanic's lien protection, may be held liable for on-site injuries, and forfeits protection under MD Home Improvement Commission — Business License. That's why AskBaily's policy is to match only verified pros.
Nearby jurisdictions
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