What does the MHIC require to renew a contractor license?
Short answer. Every two years: (1) proof of at least $50,000 in general liability insurance; (2) proof of $20,000 in financial solvency; (3) a current credit report; (4) a Guaranty Fund contribution; (5) reporting any change to your business name, address, or structure.
- COMAR 09.08.01.18
- COMAR 09.08.01.19
- COMAR 09.08.01.11
Work it through
You're the contractor. Pick what you'd do, then see how each choice plays out.
Your license is up for renewal. You need to gather documentation. What does the MHIC require for renewal?
- Correct
License renewal under COMAR 09.08.01.18 requires: (1) proof of current general liability insurance of at least $50,000; (2) proof of financial solvency of at least $20,000; (3) current credit report (COMAR 09.08.01.19); (4) Guaranty Fund contribution; (5) any changes to business address, name, or structure must be reported (COMAR 09.08.01.11). Licenses expire every 2 years. Don't wait until the last minute.
- Incomplete
The renewal fee and insurance are necessary but not sufficient. You also need to demonstrate financial solvency, provide a current credit report, make your Guaranty Fund contribution, and report any changes to your business information. Submitting an incomplete renewal application delays processing and may result in a lapse.
All 10 mhic licensing & renewal questions
- What should a new MHIC contractor do before the first job?
- What happens if your contractor liability insurance lapses in Maryland?
- How do you meet the MHIC financial solvency requirement at renewal?
- What does the MHIC require to renew a contractor license?
- Do you need to update your MHIC license when you form an LLC?
- Do you have to tell the MHIC when your business address changes?
- What if the MHIC lookup shows your old business name?
- Why does the MHIC review your credit report?
- Can unpaid supplier bills put your MHIC license at risk?
- How should a contractor respond to an MHIC compliance audit?