Maryland Surety Bonds Overview

Applicants for a business license in Maryland are frequently required to obtain a bond as part of their license application. Similarly, contractors in the state must also get certain bonds before they can even bid on certain public or federal construction projects.

Why are bonds required?

Surety bond agreements serve the purpose of guaranteeing that the bonded party, the bond principal, will comply with a certain set of conditions and obligations. Such conditions may include particular state laws and regulations as well as the general requirement of conducting business fairly and honestly.

Bonds further act as financial security for the parties that they protect, the bond obligees, which typically are the public and the state. If a principal violates the conditions of their bond agreement and causes losses to obligees, the latter may file a claim. The company that backs the bond will then usually extend compensation to claimants.

This is why bonds are required, in a nutshell. To learn more, see our detailed ‘What is a surety bond’ guide!

To get started with your surety bond application, see the table below to find the surety bond you need. Click ‘Apply’ and follow the instructions.

To find out more about Maryland surety bonds, scroll down to the next sections. There you can find information about the various types of surety bonds, how much they cost and how you can get bonded.

Find the Bond You Need

The table below contains a list of only the most popular surety bonds. If you can't find yours, fill out our online application and select "Not in the list".

Contractor License Performance & Payment (Local) Bond Montgomery County Maryland Dept of Permitting Serv Montgomery County Performance Bond Apply Now
Contractor License Performance & Payment (Local) Bond City of Takoma Park Storm Water Management Bond Apply Now
Contractor License Performance & Payment (State) Bond Home Improvement Commission Home Improvement Contractor Apply Now
Contractor License Performance & Payment (State) Bond State of Maryland Home Improvement Contractor's Bond Apply Now
Excess Weight, Other Highway & Street Permit Bond MD Motor Carrier Division Hauling Performance Bond Apply Now
Investment Advisor (Blue Sky) Bond Securities Commissioner Investment Advisor Apply Now
Collection Agency Bond Commissioner of Financial Regulation Collection Agency Apply Now
Debt Consolidators Bond Commissioner of Financial Regulation Licensee Surety Bond Credit Service Business Apply Now
Debt Consolidators Bond Commissioner of Financial Regulation Debt Settlement Services Registration Apply Now
Professional Fund Raisers Bond State of Maryland Professional Solicitors & Public Safety Solicitors Apply Now
Insurance Agents/Brokers Bond Maryland Automobile Insurance Fund Automobile Insurance Fund Producer Apply Now
Insurance Agents/Brokers Bond MD Insurance Commissioner Insurance Administration Insurance Advisor Apply Now
Insurance Surplus Lines Brokers Bond Maryland Insurance Administration Surplus Lines Apply Now
Insurance 3rd Party Administrator Bond Maryland Department of Insurance 3rd Party Administrator Bond Apply Now
Mortgage Broker (1st & 2nd Mortgages) Bond Financial Reglation Commissioner, Maryland Dept of Mortgage Broker Apply Now
Mortgage Lender/Banker (1st & 2nd Mort.) Bond Commissioner of Financial Regulation Mortgage Lender Apply Now
Title Insurance Agents & Escrow Officers Bond Maryland Insurance Administration Insurance Administrator Title Apply Now
Auto & Mobile Home Dealers (New & Used) Bond Motor Vehicle Administration Vehicle or Trailer Dealer Bond Apply Now
Auto & Mobile Home Dealers (New & Used) Bond Dept of Natural Resources, Licensing & Registratio Boat Dealer Apply Now
Auto & Mobile Home Dealers (Used Only, No New) Bond Motor Vehicle Administration Vehicle or Trailer Dealer Apply Now
Motor Vehicle (Non-Dealer, Not Listed) Bond Motor Vehicle Administration Title Service Agent Apply Now
Motor Vehicle (Non-Dealer, Not Listed) Bond Dept of Natural Resources Licensing & Registration Boat Dealer Bond Apply Now
Motor Vehicle (Non-Dealer, Not Listed) Bond State of Maryland Motor Vehicle Manufacturer Apply Now
Motor Vehicle (Non-Dealer, Not Listed) Bond State Highway Administration Credit Hauling Bond Apply Now
Motor Vehicle (Non-Dealer, Not Listed) Bond Prince George's County Motor Vehicle Repair Facility License Apply Now
Health Spas/Health Clubs Bond Consumer Protection Division Health Club Apply Now
Employment Agencies Bond Dept. of Labor, Licensing & Regulation Employement Agrency License Apply Now
Professional Licenses (All Other) Bond Maryland Board of Pharmacy Wholesale Distributor Surety Apply Now
Professional Licenses (All Other) Bond Department of Public Safety and Correctional Servi Private Finger Printing Provider Apply Now
Professional Licenses (All Other) Bond Maryland Public Services Commission Broker / Aggregator Bond Apply Now
Professional Licenses (All Other) Bond Securities Division Franchisor Bond Apply Now
Professional Licenses (All Other) Bond Maryland Board Of Pharmacy Wholesale Distributor Bond Apply Now
Professional Licenses (All Other) Bond Prince George's County, Maryland Towing Service License Bond Apply Now
Schools (All) Bond MD Higher Education Commission Institution of Postsecondary Education Apply Now
Schools (All) Bond MD Motor Vehicle Administration Surety Bond of Information Requestor Driver/Vehicl Apply Now
Schools (All) Bond MD Higher Education Commission Schools (All) Bond Apply Now
Schools (All) Bond Motor Vehicle Administration Driver Education Program Apply Now
Schools (All) Bond Maryland Higher Education Commission Private Career School Apply Now
Schools (All) Bond Maryland Higher Education Commission Private Career School Bond Apply Now
Alcohol (Manufacturers, Warehouses, Wholesalers) Bond State of Maryland Beer (Non Resident or Resident Dealer Bond Apply Now
Alcohol (All Others) Bond Comptroller of MD - Revenie Administration Div. Direct Wine Shipper Bond Apply Now
Alcohol (All Others) Bond Comptroller of MD - MATT Reg. Division A&T Wine and Liquor Bond Apply Now
Cigar/Cigarette & Tobacco Tax Bond Comptroller of Maryland Other Tobacco Products (OTP) Apply Now
Fuel Tax (All Others, Sellers & Users) Bond Comptroller of Maryland Motor Fuel Dealer, User, Seller Bond Apply Now
Utility Deposit Bond Baltimore Gas & Electric Baltimore Gas & Electric Utility Bond Apply Now
Wages & Fringe Benefits Bond Local Union No. 24 Intl Brotherhood of Elec.Worker Local Union No. 24 - Electrical Workers, AFL-CIO Apply Now
Wages & Fringe Benefits Bond Maryland Electrical Industry Funds Maryland Electrical Industry Funds Apply Now
Wages & Fringe Benefits Bond International Brotherhood of Electrical Workers Voice - Data - Video National Agreement Bond Apply Now
Wages & Fringe Benefits Bond Plumbers and Steamfitters Local 486 Joint Funds Ad Plumbers and Steamfitters Local 486 Joint Administ Apply Now
Wages & Fringe Benefits Bond MARYLAND PLUMBING & PIPEFITTING Payment of Employee Benefit Contributions and Wage Apply Now
Wages & Fringe Benefits Bond IBEW Local 26 Wage Payment Bond (IBEW Local 26) Apply Now
Wages & Fringe Benefits Bond International Association Heat & Frost Insulators Employer's Wage, Expense, Welfare and Pension Fund Apply Now
Fringe Benefits Only Bond IBEW Local 26 Guaranteed Payment Bond (Local 26 IBEW-NECA) Apply Now
Lottery Bond Maryland State Lottery Agency Lottery/Lotto Apply Now
Money Transmitter Bond Gloabl Express Money Orders, INc. Global Express Money Orders Inc. Indemnity Bond Apply Now
Telemarketing/Phone Solicitor Bond State of Maryland, Office of the Secretary of Stat Surety Bond for Professional Solicitors & Public S Apply Now
Telemarketing/Phone Solicitor Bond Prince George's County Door to Door Solicitor License Performance Bond Apply Now

Types of Surety Bonds in Maryland

You can choose between three main types of bonds, depending on what you need a bond for.

  • License and permits bonds are required for business licensing purposes
  • Contract bonds are required of contractors who wish to bid or perform on certain construction projects
  • Court bonds are required for the purpose of appealing a court decision or in cases when a court appoints someone a fiduciary

License & Permit Bonds

License and permit bonds are necessary for certain businesses as part of the licensing process. The purpose of these bonds is to serve as a financial guarantee for obligees that they will be compensated if they suffer financial harm, due to business malpractice, fraud or other misdeeds. In this way, these bonds protect the state and the public, as well as individual consumers.

Auto dealer bonds and freight broker bonds are among the most popular bonds obtained in the state. Many other businesses in the state also need to get bonded, so make sure to inquire with your licensing authority about the bonding requirements.

Contract Bonds

Maryland contractors will frequently be required to obtain contract bonds when they are about to bid on a construction project or perform work on one. These bonds are sometimes also required as a guarantee for subcontractors and suppliers that they will receive payment in a timely manner.

State and federal construction projects almost always require contractors to obtain contract bonds, as do many private project owners. Depending on the amount of your contract bond, there are two ways for you to apply. Find out how below.

Court Bonds

Court bonds are another type of bonds available in the state. Maryland probate courts and appellate courts are usually those who require individuals to obtain these bonds.

The function of these bonds is to either protect the appellate system from abuse or to provide guarantee to those who have their estates and assets being taken care of by fiduciaries and guardians.

If you have questions about any of these bonds or would like to speak to one of our surety bond experts before you get bonded, call us at (866) 450-3412!

How Much Does it Cost to Get Bonded in Maryland?

Surety bond cost is based on a surety bond’s amount. The cost of a bond is usually a fraction of its total amount (its penal sum).

This amount is often set on a state level, although there are some exceptions, such as the $75,000 freight broker bond. Using the freight broker bond as an example, the cost of obtaining this bond will be a small percentage of $75,000.

Who determines the bond premium and how?

Premiums are determined by surety bond companies on the basis of an applicant’s financial status. The personal credit score is the criterion which sureties evaluate most thoroughly when setting a rate for applicants. This is due to the fact that the credit score is a reliable indicator of applicants’ financial health. Sureties also consider other indicators such as:

  • Your personal financial statements
  • Your business financial statements
  • Your industry experience
  • How long your business has been operational
  • Other factors

Those applicants who have a high credit score are offered rates on their bonds which are between 1%-4% of the bond amount. But the exact amount of their premium depends on the bond they are applying for, as well as other factors.

What if I have a low credit score?

Those applicants who don’t have a credit score, or have a low credit score, usually have to pay slightly higher rates in order to get bonded. Such applicants pay rates that range between 5%-15% of the total bond amount.

Despite the higher rates, which are meant to offset the risk involved, bad credit applicants can qualify for increasingly better rates over time by improving their credit score and finances!

To get an estimate of your bond premium, use our surety bond cost calculator below!

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Check out our surety bond cost page for even more information on what influences the cost of your bond, and whether and how you can lower your premium.

How to Get Bonded in Maryland

Getting bonded in Maryland is quick and simple. Begin by following the appropriate application link and filling in the relevant form.

License bond application

To apply for a license bond, complete our online bond application. We will process your application within a short amount of time and get in touch to provide you with a free quote and more information on getting bonded.

Start your surety bond application today! Why us?
  • Quick turnaround - just 1-2 business days
  • Tailor-made advice on building a strong application
  • Exclusive bad credit programs

Contract Bond Application

For contract bond applications, download the contract bond form which you require, depending on the amount of your contract. Once you complete the form, forward it to us for review. We will contact you to provide you with further details on how to complete the bonding process.

You can also call anytime at (866)-450-3412, to speak to us about anything related to surety bonds. If you have any questions about a particular bond or need help with your application - our experts will be there.

Further Reading


About the author:
Todd Bryant
Todd Bryant is a graduate of Germantown Academy and the University of Pittsburgh College of Business Administration Honors College. He has been President of Bryant Surety Bonds, Inc., an A+ rated Business with the Better Business Bureau, since 2007. Licensed as a producer with the Department of Insurance, he has been published in the National Association of Surety Bond Producers newsletter and on numerous authoritative publications such as The Washington Post, Entrepreneur.com, Azcentral.com and many more.