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.
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 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!
Surety Bond Cost Calculator
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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.
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.