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Maryland Public Construction Bonds

Maryland requires surety security when construction awards exceeding the small procurement amount set by State Finance and Procurement §13-109; payment and performance security in the form and amount required by §17-104. Maryland requires public bodies to obtain construction payment and performance security before awarding covered contracts; §17-104 allows specific security forms and limits real-property collateral to 75% of contractor equity. 1,2

What Is Surety Bonds?

A surety bond guarantees that your business meets a specific obligation to a customer, contracting party or government agency. If a contract, license or permit requires one, get its exact form and amount; a bond is not insurance for your own losses. Read the national Surety bonds guide.

Maryland Requirements

RequirementDetails
Public construction securityConstruction awards exceeding the small procurement amount set by state finance and procurement §13-109; payment and performance security in the form and amount required by §17-104. 1

What to Watch for in Maryland

  • Check the Maryland Contract Trigger

    Maryland law triggers public-work security when construction awards exceeding the small procurement amount set by State Finance and Procurement §13-109. Payment and performance security in the form and amount required by §17-104 Ask the contracting agency to confirm whether your project falls under this rule and to state the bond penal sum in the bid documents. 1

  • Maryland Has Another Bond Rule for This Work

    Maryland requires public bodies to obtain construction payment and performance security before awarding covered contracts; §17-104 allows specific security forms and limits real-property collateral to 75% of contractor equity. Before binding the surety, match the required obligee, bond form, and covered obligation to this separate rule. 2

  • Match the Solicitation’s Bond Form

    The State Finance and Procurement §17-108 governs this statutory obligation, while the project solicitation identifies the obligee, filing deadline, and any bid-security details. Get the final form approved before the bid date and confirm that the named surety is authorized for Maryland work. 1,2

Who Regulates Insurance in Maryland

Maryland Insurance Administration

The Maryland Insurance Administration licenses producers and insurers, reviews rates and forms, and investigates complaints about insurance companies and producers. You can use its state lookup or complaint service to check a license or raise an insurance issue. 3,4,5

Surplus-lines tax and stamping office

Reported tax rate: 3% of gross premiums less returned premiums when Maryland is the insured's home state; excludes risks of Maryland and its political subdivisions When Maryland is the insured's home state, the tax is 3% of gross premiums less returned premiums, except insurance of risks of the State or a political subdivision. For policies effective on or after July 21, 2011, Maryland taxes the entire premium and the broker must charge the tax in addition to premium. Maryland's property and casualty guaranty corporation excludes surplus-lines policies. 6,7

Providers With Documented State Licenses

These providers publish a national listing for Surety bonds; the state records document licenses for the entities and roles shown below. Some records rely on company-reported information rather than independent regulator verification. A national listing does not confirm the product is available in Maryland. Check the regulator’s license lookup and confirm state availability for your business when requesting a quote.

  • TechInsuranceSpecialty Program Group LLCInsurance producer · checked 2026-09-28TechInsurance’s current licensing page names Specialty Program Group LLC / SPG Insurance Solutions and lists state license numbers, but labels Rhode Island “Individual licenses” rather than identifying a license for the named agency. RI is omitted because this disclosure does not establish agency authority there; this is a search limitation, not an assertion that the company is unlicensed. The remaining state entries are company-reported and are not an insurance product availability map. 13

Questions to Ask Before You Buy in Maryland

  1. Which Maryland statute or procurement rule triggers this bond for our project, and what is the exact penal sum?
  2. Will the obligee accept another form of security, and who must approve that substitution in Maryland?
  3. What notice, filing, and claim deadlines should our subcontractors and suppliers track under this bond?

Surety Bonds in Maryland: FAQ

When does a Maryland public construction project require a surety bond? 1

Construction awards exceeding the small procurement amount set by state finance and procurement §13-109. Payment and performance security in the form and amount required by §17-104 1

Does Maryland have another bond requirement beyond the public construction bond? 2

Yes. Maryland requires public bodies to obtain construction payment and performance security before awarding covered contracts; §17-104 allows specific security forms and limits real-property collateral to 75% of contractor equity. 2

Surety Bonds in Other States

Other Coverage in Maryland

Sources

  1. State Finance and Procurement §17-108. State Finance and Procurement; State Finance and Procurement §17-108. Accessed 2026-09-29.
  2. Maryland Code §17-104. Maryland Code; §17-104(a)-(b): acceptable security; equity cap on mortgage security. Accessed 2026-09-29.
  3. Maryland Insurance Administration. Maryland Insurance Administration; Homepage and consumer contact. Accessed 2026-09-28.
  4. Insurance License Lookup. Maryland Insurance Administration; State-designated producer/company search. Accessed 2026-09-28.
  5. File an Insurance Complaint. Maryland Insurance Administration; State complaint process and contact. Accessed 2026-09-28.
  6. Md. Code, Insurance §3-324. Maryland General Assembly; Insurance §3-324(a)-(b), (d)-(f): government-risk exclusion; 3% of gross premiums less returns; entire-premium home-state basis from July 21, 2011, with tax charged in addition. Accessed 2026-09-28.
  7. Maryland Insurance Article (2026). Maryland General Assembly; Insurance §9-303(5), (7): surplus-lines and unauthorized insurers excluded from property and casualty guaranty subtitle; 2026 Insurance Article PDF. Accessed 2026-09-28.
  8. Licenses. At-Bay; Current producer introduction and state table; At-Bay Insurance Services LLC; P&C and surplus-lines identifiers. Accessed 2026-09-21.
  9. Licenses and Carriers. Coalition; Licenses and Carriers, re-read 22 September 2026: Insurance Licenses table for Coalition Insurance Solutions, Inc., national producer number 18419475, with producer and surplus-lines numbers for all 50 states and DC including California 0L76155, Georgia 196479, Texas 2199630 and 2205589, Pennsylvania 815731 and 817452, Colorado 539028 and Wisconsin 3000108852. Insurance Carriers table naming, with NAIC numbers, Allianz Underwriters Insurance Company 36420, Arch Specialty Insurance Company 21199, Ascot Specialty Insurance Company 45055, Ascot Insurance Company 23752, Aspen Specialty Insurance Company 10717, Chaucer Insurance Company DAC, Coalition Insurance Company 29530, Fireman's Fund Indemnity Corporation 11380, Fortegra Specialty Insurance Company 16823, Lloyd's of London, MSIG Specialty Insurance USA Inc. 34886, MS Transverse Specialty Insurance Company 41807, Steadfast Insurance Company 26387, Vantage Risk Specialty Insurance Company 16275 and Zurich American Insurance Company 16535. Accessed 2026-09-22.
  10. Insurance Producer Licenses. Corgi Insurance; Current complete Insurance Producer Licenses table for Corgi Insurance Services, Inc.; 50 rows covering 49 states and DC (DC 3003091619); no New Mexico row; no NPN or as-of date shown. Accessed 2026-09-28.
  11. About Hiscox US Insurance. Hiscox; Hiscox Insurance Company Inc. NAIC 10200 as Chicago, IL domiciled insurer admitted or licensed in all 50 states and D.C.; Hiscox Inc. as general agent and Lloyd’s coverholder for Syndicates 33 and 3624; surplus-lines placements through licensed surplus-lines brokers; A.M. Best rating statement. Accessed 2026-09-16.
  12. Licenses. ERGO NEXT Insurance; Current entity-by-state license table reopened 28 September 2026: 50 rows under Next First Insurance Agency, Inc., including Washington, DC; New York rows instead list Next Insurance Services PC-1423070 and AP Intego BR-1198885. Accessed 2026-09-28.
  13. Insurance Licenses by State. TechInsurance; Current state table; identifies TechInsurance as a division of Specialty Program Group LLC d/b/a SPG Insurance Solutions; lists DC 3000041536 and labels Rhode Island “Individual licenses,” without an agency license number. Accessed 2026-09-28.
  14. Licenses. Vouch; Effective 16 January 2025: Vouch Specialty Insurance Services, LLC, NPN 19926463; P&C table (50 states and DC); surplus-lines table includes Idaho 870820; footnote says Georgia and Idaho do not issue agency-level surplus-lines licenses; Idaho retained as producer-only due to conflict. Accessed 2026-09-15.

Updated .

This guide is informational and does not determine whether a policy is available or meets your needs. Editorial policy. To suggest a correction, contact Spot with a supporting source.

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