General Contractor Insurance in Maryland

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General contractor insurance in Maryland

Learn about business insurance requirements and the most common policies for general contractors in Maryland.

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Find the right coverage

Insureon helps general contractors find construction insurance that matches your unique risks.

Get free expert advice and peace of mind knowing you have the right property and liability coverage for your small business.

What are the most common policies for general contractors in Maryland?

General contractors may need different types of insurance coverage depending on the work they do and their client contracts. These policies are the most popular for general contractors in Maryland, and often provide the best coverage for their insurance needs.

General liability insurance icon

General liability insurance

This policy covers basic risks, such as a client who trips over your toolbox and suffers an injury. Bundle it with commercial property insurance for savings in a business owner's policy.

  • Customer bodily injuries
  • Damaged customer property
  • Product liability insurance
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Business owner's policy

A BOP bundles general liability coverage and commercial property coverage at a discount. It's often the most cost-effective type of insurance for general contractors.

  • Accidents that injure clients
  • Client property damage
  • Stolen or damaged business property
Workers’ compensation insurance icon

Workers’ compensation insurance

Most states require workers’ comp for general contracting businesses that have employees. It also protects sole proprietors from work injury costs that health insurance might deny.

  • Employee medical expenses
  • Disability benefits
  • Employee injury lawsuits
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Commercial auto insurance

A business auto policy covers the cost of injuries and property damage in accidents involving a general contractor’s van. It can also pay for repairs to vehicles damaged by weather or vandalism.

  • Legal costs from an auto accident
  • Property damage caused by your vehicle
  • Vehicle theft and vandalism
Contractor’s tools and equipment coverage icon

Contractor's tools and equipment insurance

This policy, a type of inland marine insurance, helps pay for repair or replacement of a contractor’s saws, nail guns, hammers, and other tools if they're lost, stolen, or damaged.

  • Equipment less than five years old
  • Mobile equipment and tools
  • Small tools
Professional liability insurance icon

Professional liability insurance

This policy is also called errors and omissions insurance (E&O). It covers legal fees when a general contractor is sued over a mistake, such as using the wrong materials.

  • Accusations of negligence
  • Failure to complete a project
  • Work mistakes and oversights
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Contractor surety bonds

A bond guarantees reimbursement for the client if a general contractor fails to fulfill the terms of a contract or adhere to building codes. Common bonds include bid bonds, performance bonds, and payment bonds.

  • Compliance with laws
  • Incomplete jobs
  • Breach of contract
Builder’s risk insurance icon

Builder's risk insurance

This policy covers structures in progress and materials, often paying for damage caused by fire, vandalization, and non-severe weather events.

  • New construction
  • Building renovation
  • Worksite theft and vandalism
Environmental liability insurance icon

Contractors pollution liability insurance

Contractors pollution liability covers costs related to pollution, such as a lawsuit alleging harm caused from exposure to silica dust on a construction job site. It's sometimes referred to as environmental insurance.

  • Pollution events
  • Spills during transport
  • Lawsuits over contaminants
Looking for different coverage? See more policies.

What insurance is required for general contractors in Maryland?

General contractors in Maryland may need to carry the following insurance policies to comply with county or state laws:

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General liability insurance

General liability insurance is the foundation of a general contractor’s protection. It covers accidents that damage a client's property or cause a bodily injury, along with libel and other advertising injuries.

A general liability policy is required if you work on home improvement projects. The type of work you do may also determine how much coverage you're required to carry.

Contractors in Maryland may also need this policy to sign a commercial lease or meet the terms of a client's contract. Adding commercial umbrella insurance can boost the coverage limits on general liability insurance and other policies.

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Workers' compensation insurance

If you own a construction or home improvement business in Maryland with one or more employees, your business is required to carry workers' compensation insurance.

Workers' comp insurance covers medical costs and disability benefits when an employee is injured on the job or develops an occupational illness. It's a key policy for the construction industry and related professions, such as carpenters, electricians, and plumbers.

Sole proprietors may not need workers' compensation coverage for their general contractor license, but it's still a good idea to carry this insurance. Personal health insurance doesn't cover work-related personal injuries, so it can save you from out-of-pocket medical expenses.

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Commercial auto insurance

Business vehicles in Maryland must be covered by a commercial auto policy.

Commercial auto insurance protects vehicles owned by your general contracting company. It covers property damage and medical bills in an accident, along with vehicle theft, weather damage, and vandalism.

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How much does insurance cost for general contractors in Maryland?

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General contractors in Maryland who buy policies from Insureon pay an average premium of:

General liability: $100 per month
Workers' compensation: $271 per month
Commercial auto: $233 per month

Insurance agencies look at several factors when calculating the cost of general contractor insurance, including:

  • Type of building construction, such as townhouses, multifamily homes, or offices
  • Business property and equipment
  • Business income and size
  • Years of work experience
  • Policy limits and deductibles

When do you need a general contractor business license in Maryland?

In Maryland, from Baltimore to Ocean City, certain classes of general contractors are required to carry a state-issued license depending on the type of construction projects they want to work on.

There are four classifications of contractors in the state of Maryland:

  • New home construction: This class doesn't require a license, but must be registered with the Home Builder Registration Unit.
  • Existing residential properties: You must have a Maryland Home Improvement Commission (MHIC) license.
  • Home improvement projects: This type of work requires a license from the MHIC.
  • Commercial contractors: There's no state-level licenses, but you must register at the city or county level.

MHIC license requirements include:

To learn more about Maryland licensing and registration requirements, visit the website.

How do I get Maryland contractors insurance?

Insureon’s industry-leading technology helps general contractors in Maryland save time and money shopping for business liability insurance and property insurance. Start an online application to get free quotes from top-rated U.S. insurance companies.

To get through the application quicker, have this information ready:

  • Workforce details, such as the number and types of employees (part-time, full-time, or subcontractors)
  • Current and projected revenue
  • Business partnerships
  • Insurance history and prior claims
  • Commercial lease insurance requirements

A licensed insurance agent can answer your questions and help you find the right coverage for your Maryland business. Small business owners can access their certificate of insurance shortly after they apply for quotes and pay for a policy.

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