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Maryland Contractor Licensing

Maryland MHIC License Requirements: Experience, Exam, Insurance & How to Apply

A Maryland Home Improvement Commission (MHIC) contractor license is generally required to act or offer to act as a home improvement contractor in Maryland unless a statutory exception applies. Current Maryland requirements include passing the MHIC contractor examination before applying, meeting the experience or education requirement, demonstrating financial solvency, maintaining the required general liability insurance, and submitting the Commission’s application and supporting documents.

Official source: Maryland Business Regulation § 8-301 — License required
Official source: Maryland Business Regulation § 8-302 / § 8-302.2

Important 2026 insurance update

Current Maryland law requires MHIC contractor applicants and licensed contractors to maintain at least $500,000 in general liability insurance. Some Maryland Labor summary pages still display the former $50,000 figure. The statute was amended effective October 1, 2024, increasing the requirement to $500,000. Use the current statute and confirm the Commission’s current proof-of-insurance instructions before filing.

Official source: Maryland Business Regulation § 8-302.1 — Current $500,000 requirement

Last reviewed and verified against current Maryland statutes, regulations and Maryland Department of Labor MHIC guidance: September 2026
Maryland MHIC Exam Preparation How to Apply

MHIC License Requirements at a Glance

ItemCurrent Requirement / Key Point
LicenseMaryland Home Improvement Commission contractor license
Who needs itA person acting or offering to act as a home improvement contractor in Maryland, unless a statutory exception applies
Exam timingPass the contractor exam before submitting the license application
Experience / educationAt least 2 years of satisfactory trade experience, or comparable educational training
Exam55 questions; 2 hours; minimum 70% correct according to Maryland Labor’s current exam page
Exam score validityApply for licensure within 2 years after passing or the score expires
Financial solvencyApplicant must demonstrate financial solvency; current COMAR ties the net-worth benchmark to the maximum single-claim Guaranty Fund award, currently $30,000
Surety bond alternativeCurrent COMAR requires a 2-year bond for the applicable amount if sufficient net worth is not demonstrated
General liability insuranceAt least $500,000 under current Maryland law
License period2 years from original issuance

Official source: Maryland Labor — MHIC License Categories and Requirements

Official source: COMAR 09.08.01.19 — Financial Solvency

The Basics

What Is an MHIC Contractor License?

The Maryland Home Improvement Commission licenses contractors who perform or offer to perform home improvement work for owners in Maryland. Maryland law defines a contractor as a person, other than an owner’s employee, who performs, offers or agrees to perform a home improvement for an owner.

Official source: Maryland Business Regulation § 8-101

Who Needs an MHIC Contractor License?

Maryland law generally requires a contractor license whenever a person acts as a home improvement contractor in the State. It also generally requires a contractor or salesperson license when selling home improvement work. The statute contains specific exceptions, including certain separately licensed occupations when acting within the scope of those licenses.

Official source: Maryland Business Regulation § 8-301

CEP Note

Do not assume that every construction-related credential substitutes for an MHIC license. The answer depends on the work being offered and whether a statutory exception applies. For licensing questions involving another Maryland trade credential, verify the scope with the appropriate state licensing authority.

Scope

What Does Maryland Consider “Home Improvement”?

Maryland’s Home Improvement Law defines “home improvement” broadly to include additions, alterations, conversions, improvements, modernization, remodeling, repair or replacement of a residential building or part of it, or a structure adjacent to it. The statute also identifies work that is excluded from the definition, including new-home construction and certain other categories.

Official source: Maryland Business Regulation § 8-101 — Definitions

MHIC Contractor License vs. Salesperson License

Contractor license

A contractor license authorizes the licensee to perform or agree to perform home improvement work for a homeowner.

Salesperson license

A salesperson license is for a person who sells home improvements on behalf of licensed contractors.

Maryland Labor states that a salesperson may represent up to two licensed contractors.

Official source: Maryland Labor — MHIC License Categories and Requirements

Requirements

How Much Experience Is Required for an MHIC Contractor License?

Current Maryland law requires an applicant for a contractor license to have at least two years of trade experience satisfactory to the Commission or comparable educational training as determined under Commission regulations.

Official source: Maryland Business Regulation § 8-302.2

Current COMAR guidance says trade experience can include registered apprenticeship participation, employment performing home improvements, commercial or residential construction/repair/renovation work, certain community-service building work, and qualifying repairs or improvements performed on the applicant’s own or family property.

Official source: COMAR 09.08.01 — Experience or Education Requirement

The Exam

Do I Have to Pass the MHIC Exam Before Applying?

Yes. Maryland law requires a contractor-license applicant to pass the required examination before submitting the license application.

Official source: Maryland Business Regulation § 8-302

What Is on the MHIC Contractor Exam?

Maryland Labor currently states that the contractor examination contains 55 questions, is two hours long, and requires at least 70% correct responses to pass. The exam is based on laws and regulations relating to operation of a home improvement business and the sale of home improvement work.

Official source: Maryland Labor — Taking the MHIC Exam

How Long Is a Passing Exam Score Valid?

Maryland Labor states that an applicant who passes must apply for licensure within two years. If the applicant does not apply within that period, the score expires and the examination must be retaken.

Official source: Maryland Labor — Taking the MHIC Exam

What Happens If I Fail the Exam?

Maryland Labor’s current exam FAQ states that after an unsuccessful attempt, an applicant must wait 30 days before reapplying; subsequent requests cannot be made until 60 days have passed. The exam fee applies to each attempt.

Official source: Maryland Labor — MHIC Licensing FAQs

Is an MHIC Prep Course Required?

No. Maryland Labor states that an exam-preparation course is not required to apply for an MHIC license. A prep course is optional assistance for candidates who want structured help preparing for the exam.

Official source: Maryland Labor — Taking the MHIC Exam

CEP offers live, in-person ONLY preparation: Maryland MHIC Exam Preparation

Financial Requirements

What Is the MHIC Financial Solvency Requirement?

Maryland requires a contractor-license applicant to demonstrate financial solvency. Under current COMAR, an original applicant submits a credit report and information concerning outstanding judgments and pending civil actions. If the applicant does not demonstrate net worth equal to the maximum Guaranty Fund award available to one claimant for the acts or omissions of one contractor, the applicant must obtain a two-year surety bond for that amount.

Official source: COMAR 09.08.01.19 — Financial Solvency

The current statutory maximum Guaranty Fund award to one claimant for acts or omissions of one contractor is $30,000. That makes the current net-worth benchmark and bond amount $30,000 under the regulation’s formula.

Official source: Maryland Business Regulation § 8-405(e)(1)

What documents should I expect?

Maryland Labor’s current contractor checklist calls for a personal financial worksheet, recent personal bank statements, a full individual credit report, and additional documents where applicable. Use the current MHIC checklist when assembling the final application because document requirements can change.

Official source: Maryland Labor — Original Contractor Requirements / Checklist

Insurance

How Much Liability Insurance Does an MHIC Contractor Need?

Current Maryland law requires an applicant for an MHIC contractor license—and a licensed contractor—to maintain general liability insurance of at least $500,000.

Official source: Maryland Business Regulation § 8-302.1

The $500,000 requirement took effect October 1, 2024. The 2024 legislation increased the former $50,000 statutory requirement to $500,000.

Official source: Maryland General Assembly — Chapter 529 / SB 806 (effective Oct. 1, 2024)

Why we are emphasizing this

As of this September 2026 review, at least one Maryland Labor MHIC summary page still displays the old $50,000 amount. The current Maryland statute says $500,000.

Business Documents

What Business Documents May Be Required?

The required supporting documents depend on how the business operates. Maryland Labor states that a contractor representing a corporation must provide articles of incorporation and a Certificate of Good Standing. A contractor using a trade name must register the name as required and submit the trade-name registration. Out-of-state business entities may have Maryland registration requirements as well.

Official source: Maryland Labor — MHIC License Categories and Requirements
Official source: Maryland Labor — Original Contractor Requirements / Checklist

Step by Step

How Do I Get an MHIC Contractor License?

  1. Confirm that the work you plan to perform falls within Maryland’s Home Improvement Law and that an MHIC contractor license is the appropriate credential.

  2. Confirm that you can document at least two years of qualifying trade experience or comparable education.

  3. Prepare for and pass the MHIC contractor examination before submitting the license application.

  4. Assemble financial-solvency documentation, including the required credit report and supporting financial documents.

  5. If the required net worth is not demonstrated, arrange the surety bond or other Commission-approved financial-solvency solution that applies to your application.

  6. Obtain and maintain at least $500,000 in general liability insurance and prepare proof that meets current MHIC filing requirements.

  7. Complete any required business entity, corporation or trade-name registrations and gather supporting documents.

  8. Submit the MHIC contractor application, required supporting documents, application fees and Guaranty Fund payment required by current law.

  9. Respond promptly if MHIC identifies missing or incorrect information.

Official source: Maryland Business Regulation §§ 8-302, 8-302.1, 8-302.2, 8-303

What Does the Application Require?

Maryland law authorizes the Commission to require information about the applicant’s identity and business, contracting experience, prior professional/vocational licenses and disciplinary history, and financial stability. Contractor applicants must also provide the required credit report and proof of liability insurance.

Official source: Maryland Business Regulation § 8-303

  • MHIC application after passing the exam
  • Experience information
  • Personal financial worksheet
  • Credit report
  • Recent personal bank statements
  • Proof of current general liability insurance meeting the current statutory minimum
  • Business/corporate/trade-name records when applicable
  • Government-issued identification/photo and any other documents required by the current Commission checklist
Timeline

How Long Does the MHIC Application Take?

Maryland Labor’s current applicant FAQ says the application approval process may take approximately two to three weeks when the application is complete and correct. Incomplete or incorrect applications take additional time.

Official source: Maryland Labor — MHIC Licensing FAQs

CEP Tip

The fastest part of the process to control is preparation. Pass the exam first as required, then submit a complete application package with current insurance, financial and business documents. Missing documents create avoidable back-and-forth.

What Is the MHIC Guaranty Fund?

The Maryland Home Improvement Commission administers a Guaranty Fund that may compensate eligible homeowners for certain actual losses caused by licensed contractors. Contractor licensees fund the program through required assessments. Maryland law requires a contractor applicant to make the applicable Fund payment before the Commission issues the license.

Official source: Maryland Business Regulation § 8-404
Official source: Maryland Labor — Guaranty Fund FAQs

How Long Is an MHIC License Valid?

Maryland Labor states that an original MHIC license period is two years from the date of issuance. Renewal requirements include the applicable renewal process, Guaranty Fund assessment and proof of current insurance.

Official source: Maryland Labor — MHIC License Categories and Requirements
Official source: Maryland Labor — Renew an MHIC License
Official source: Maryland Business Regulation § 8-308

Avoid These

Common MHIC Licensing Mistakes

Mistake #1 — Applying before passing the exam

Maryland law requires the examination to be passed before the license application is submitted.

Mistake #2 — Using the old $50,000 insurance figure

Current Maryland law requires at least $500,000 in general liability insurance. Some agency summary material still shows the former amount.

Mistake #3 — Under-documenting experience

The applicant must satisfy the two-year trade-experience requirement or the comparable-education alternative.

Mistake #4 — Ignoring financial solvency until after the exam

Financial documentation, credit reporting and a possible surety bond are core application requirements and can delay approval if left until the end.

Mistake #5 — Failing to register the business or trade name correctly

Corporate, out-of-state and trade-name documentation can be required as part of the license package.

Mistake #6 — Assuming every construction job is or is not “home improvement”

Maryland defines home improvement and also lists exclusions and licensing exceptions. Scope matters.

Mistake #7 — Treating a prep course as a licensing prerequisite

Maryland does not require an exam-prep course. The course is a preparation tool; the legal requirement is passing the exam and meeting the licensing requirements.

After Licensure

Do MHIC Contracts Have Special Requirements?

Yes. Maryland’s MHIC rules impose specific requirements on home improvement contracts. Maryland Labor states that contracts must be written and legible, signed by each party, and contain required contractor and MHIC information. The Commission also limits deposits and prescribes homeowner notices. These operating rules matter after licensure and should be reviewed before contracting with homeowners.

Official source: Maryland Labor — Home Improvement Contracts
Official source: Maryland Labor — Notice to Contractors Regarding Contract Requirements

Where We Fit

Where Does Contractor Exam Preparation Fit Into the MHIC Process?

The Maryland Home Improvement Commission is the licensing authority. The Commission’s testing vendor administers the examination. The applicant is responsible for meeting the experience, financial, insurance, business and application requirements. Contractor Exam Preparation helps candidates prepare for the MHIC contractor examination.

CEP’s MHIC preparation is exclusively live, in-person ONLY and instructor-led. It is designed to help candidates understand the material, locate information efficiently and prepare for the actual licensing examination. The course is exam preparation; it is not a substitute for MHIC licensing requirements.

Learn more: Maryland MHIC Exam Preparation
Your Next Step

What Should I Do Next?

Need the full licensing process:How to Get Your MHIC Contractor License Need exam preparation:Maryland MHIC Exam Preparation Have detailed licensing questions:Maryland Contractor License / MHIC FAQs
FAQs

Maryland MHIC License Requirements FAQs

Do I need an MHIC license to perform home improvement work in Maryland?

Maryland law generally requires a contractor license when a person acts or offers to act as a home improvement contractor in the State, subject to the exceptions contained in the Home Improvement Law.

Official source: Maryland Business Regulation § 8-301

How much experience do I need for an MHIC contractor license?

At least two years of satisfactory trade experience or comparable educational training.

Official source: Maryland Business Regulation § 8-302.2

Do I take the MHIC exam before applying?

Yes. Maryland law requires the applicant to pass the examination before submitting the contractor-license application.

Official source: Maryland Business Regulation § 8-302

What score do I need on the MHIC contractor exam?

Maryland Labor currently states that the contractor exam has 55 questions and requires at least 70% correct responses to pass.

Official source: Maryland Labor — Taking the Exam

How much liability insurance is required for MHIC?

Current Maryland law requires at least $500,000 in general liability insurance for an applicant and licensed contractor.

Official source: Maryland Business Regulation § 8-302.1

What is the MHIC financial solvency requirement?

Current COMAR requires the applicant to demonstrate financial solvency. If the applicant does not demonstrate net worth equal to the maximum single-claim Guaranty Fund award—currently $30,000—the applicant must obtain a two-year surety bond for that amount.

Official source: COMAR 09.08.01.19

Is an MHIC prep course required by Maryland?

No. Maryland Labor states that an exam-preparation course is not required. Passing the examination and satisfying the licensing requirements are what the law requires.

Official source: Maryland Labor — Taking the Exam

How long is an MHIC license valid?

Maryland Labor states that the original license period is two years from the date of issuance.

Official source: Maryland Labor — License Categories and Requirements

Official Sources Reviewed

Regulatory and licensing facts in this draft were checked against the following government sources. Where an agency summary page conflicts with current statutory text, the current statute/regulation is treated as controlling authority.