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Maryland contractors need $500,000 in general liability insurance to maintain their MHIC license.
As of June 1, 2024, this requirement increased tenfold from $50,000.
We help Carney contractors secure MHIC-compliant coverage at competitive rates through multi-carrier access and 20+ years of Maryland expertise.
Call (440) 826-3676 to speak with a licensed Maryland agent today.
Table of Contents
Understanding the $500,000 General Liability Requirement for Carney Contractors
All Maryland Home Improvement Commission licensed contractors must carry $500,000 in general liability insurance effective June 1, 2024.
This dramatic increase caught many Carney contractors unprepared, forcing them to scramble for compliant coverage before license renewals.
The Maryland Home Improvement Commission enforces this strictly.
No proof of coverage means no license renewal. License suspension stops your ability to work legally on home improvement projects across Maryland.
General liability insurance protects your business against third-party claims for bodily injury, property damage, and completed operations.
A homeowner trips over your equipment, your work causes water damage, or completed work fails—this coverage pays medical bills, legal defense, and settlements.
We verify your coverage meets MHIC standards and generate Certificates of Insurance within 24 hours.
Industry standard protection runs $1,000,000 per occurrence with $2,000,000 aggregate—higher limits protect you when serious incidents exceed $500,000 in damages.
Maryland Contractor Insurance Requirements Overview
Protecting your contracting business requires comprehensive coverage tailored to your trade and risk profile.
Here are the policies Carney contractors need.
Covers bodily injury, property damage, and completed operations claims from your work.
Maryland requires $500,000 minimum, but industry standard is $1,000,000 per occurrence with $2,000,000 aggregate limits.
This policy responds when your excavator hits a gas line, a ladder falls and injures someone, or your completed work fails months later.
Mandatory in Maryland for any business with employees.
Pays medical expenses and wage replacement when workers get injured on the job. Maryland averages $271 per month.
The Maryland Workers’ Compensation Commission hits businesses without coverage with fines, criminal charges, and personal liability for employee injuries.
Critical warning: When you hire subcontractors without their own workers’ comp, you become responsible for coverage.
This surfaces during annual audits when carriers review your records—suddenly you owe thousands in additional premium.
Required for all business vehicles. Personal auto policies exclude business use.
Whether you drive a pickup to jobsites or maintain a service fleet, you need commercial coverage that responds when your vehicle causes property damage or injuries.
Protects contractors providing design services or professional advice.
Design-build contractors, engineers, and contractors offering system design bear liability for professional negligence.
An HVAC design proves inadequate or structural calculations contain errors—this coverage responds.
Protects construction projects against fire, theft, vandalism, and weather damage during building.
General liability excludes damage to your own work.
Property insurance doesn’t cover structures under construction. Builder’s risk bridges this gap.
Protects your tools and equipment against jobsite theft, vehicle break-ins, fire, and breakdown.
Inland marine coverage follows your property whether stored in your shop, loaded in vehicles, or deployed on jobsites.
Contractors with equipment exceeding $25,000 typically benefit from this coverage.
Provides additional liability protection beyond primary policy limits.
Large projects and government contracts often require $2,000,000 to $5,000,000 in coverage.
Umbrella policies deliver these higher limits at modest cost.
Better Coverage Options Through Independent Agents for Carney Contractors
Independent agencies represent multiple carriers, giving contractors competitive quotes and tailored coverage that single-carrier agents cannot provide.
Captive agents work for one company and sell only that company’s products.
One quote, one price, one set of terms. Take it or leave it.
We operate differently. Our relationships with multiple carriers generate genuine competition for your business.
We submit your profile to carriers competing for Maryland contractor business, delivering multiple quotes with varying premiums and coverage terms.
Five advantages of working with our independent agency serving Carney:
- Multi-carrier access: We quote with Hartford, Travelers, CNA, Liberty Mutual, Nationwide, and regional carriers specializing in contractor risks
- Unbiased recommendations: We don’t push products to meet sales quotas—our advice focuses on your protection needs and budget
- Challenging risk expertise: Prior claims or certain trades make some carriers decline coverage. We know which carriers specialize in these profiles
- Maryland regulatory knowledge: We understand MHIC requirements, state insurance laws, and local construction risks
- Claims advocacy: When losses occur, we represent your interests with carriers—not the carrier’s interests with you
We’ve spent 20+ years helping Maryland contractors secure proper business insurance.
We don’t settle for one-size-fits-all policies.
We get contractor insurance tailored to your business, by people who know it best.
Call (440) 826-3676 to experience the independent agency difference.
Dedicated Construction and Contractor Insurance Solutions in Carney, Maryland Customized For You
We know how frustrating and complex the process of finding the right business insurance agents and getting a same-day certificate of insurance can be.
Let us help fix it for you in 3 easy steps!
Tell us about your specific needs and we will find the right policy for you.
Review the results of our search.
We will walk you through your new policy step by step.
Coverage Gaps That Put Your Carney Business at Risk
Many contractors discover too late their policies contain exclusions leaving them unprotected when claims arise.
Understanding these gaps helps you make informed decisions.
Third-Party Action Over Exclusion
Limits coverage when subcontractors or their employees sue general contractors. Even if workers’ comp covers the injured worker, it doesn’t protect you from their lawsuit.
Solution: Additional insured endorsements and proper contract language.
Earth Movement Exclusion
Excludes damage from subsidence, erosion, soil shifting, sinkholes, and settling. Major risk for excavation contractors. Your excavation causes a neighbor’s foundation to settle—this exclusion denies your claim.
Solution: Specialized coverage endorsements for excavation work.
Structure Size Limitations
Many policies exclude homes over 5,000 square feet or commercial buildings over 20,000 square feet.
Solution: Review policy declarations and add structure size endorsements before bidding large projects.
Subcontractor Insurance Gaps
General contractors get held liable when subs lack proper coverage.
Many rely on Certificates of Insurance from subs, only to discover the actual policy excludes coverage for the project.
Solution: Require complete policy copies including all endorsements, not just certificates.
Scope of Work Exclusions
Roofing, demolition, and work over three stories often excluded. Policies must match actual work performed.
Solution: Disclose all work types during application. Add endorsements for occasional work outside primary trade.
Call our office at (440) 826-3676 to review your policy for coverage gaps.
What Carney Contractors Pay for Insurance
General liability insurance for Maryland contractors averages $100 per month, but your actual cost depends on trade, payroll, claims history, and coverage limits.
Cost Breakdown by Coverage Type
- General Liability: $800-$3,000 annually for $1M/$2M limits
- Workers’ Compensation: $271/month Maryland average (varies by trade)
- Commercial Auto: $14,000-$17,500 annually for commercial trucks
- Total Package: $2,500-$5,000+ annually for established businesses with employees
What Affects Your Premiums
Trade classification: Roofers pay more than carpenters. Electricians pay more than painters.
Claims history: Every claim filed impacts future premiums. Multiple claims label you high-risk. Clean history delivers better rates.
Years in business: Established contractors with proven track records get better rates than startups.
Coverage limits and deductibles: Higher limits cost more. Higher deductibles reduce premiums but increase out-of-pocket costs.
Cost-Saving Strategies
Bundle policies through Business Owner’s Policies (BOPs). Implement documented safety programs.
Maintain clean claims history. Ensure accurate job classifications on workers’ comp. Work with an independent agent for competitive multi-carrier quotes.
Steps to Avoid Claim Denials
Insurance only works when claims get paid. Understanding common denial reasons protects your business when incidents occur.
Top Five Claim Denial Reasons
Untimely Notice: Report incidents immediately, even if no claim gets filed yet. Notify all insurers who might owe defense.
Certificate vs. Policy: Require complete policy copies including all endorsements from subs. Review actual contracts, not just certificates.
Improper Party Identification: Ensure consistent business names across all documents. Match your insurance, contracts, and MHIC license exactly.
Inaccurate Applications: Provide complete, accurate information. Disclose all work types. Review applications before signing.
Incomplete Documentation: Document everything. Take photos of damage immediately. Gather witness statements. Maintain detailed project records.
Specialized Insurance for Different Carney Contractor Trades
Every contractor faces unique risks. Here’s what different trades need beyond basic general liability.
General Contractors: $2M-$5M aggregate limits, builder’s risk, subcontractor default insurance, professional liability for design-build.
Electricians: Tools coverage for specialized gear, completed operations, professional liability for system design, higher limits reflecting fire risk.
HVAC Contractors: Equipment breakdown coverage, installation floaters, pollution liability for refrigerants, commercial auto.
Plumbers: Water damage liability endorsements, tools coverage, pollution liability for sewer work, extended completed operations.
Roofers: High-hazard classification, documented safety programs, extended completed operations (10+ years), weather-related considerations.
Remodelers: MHIC compliance proof, completed operations for warranties, lead paint and asbestos liability awareness.
Call us to discuss coverage specific to your trade.
Our Carrier Partners
That allows us to find the best insurance premium rates for your business needs in Carney, MD
What Happens When You Request a Free Quote
Our streamlined process delivers competitive quotes fast, so you get back to running your business.
Our Quote Process
Step 1: Submit an Online Form – We ask for your business type, operations, employees, revenue, and coverage concerns.
Step 2: Information Gathering – We collect business details, payroll, claims history, and licensing status for accurate carrier quotes.
Step 3: Multi-Carrier Comparison – You receive side-by-side quotes from Hartford, Travelers, AmTrust, Liberty Mutual, and regional specialists.
Step 4: Policy Customization – We tailor coverage, add endorsements, and optimize limits for maximum protection at competitive cost.
Step 5: Fast Binding – Often 72 hour policy issuance. Certificate of Insurance for MHIC filing generated immediately.
Why Call The Allen Thomas Group
20+ years serving Maryland contractors. Expertise in Carney construction market.
Multi-carrier access for competitive rates.
Our licensed Carney, MD commercial insurance agents ready to help. Click on the button below to start your quote.
Frequently Asked Questions
What is the minimum insurance required for contractors in Maryland?
All MHIC licensed contractors must carry $500,000 in general liability insurance as of June 1, 2024. Workers’ compensation is mandatory for businesses with employees. Commercial auto insurance is required for business vehicles.
How much does contractor insurance cost in Carney?
General liability averages $100 per month. Workers’ comp averages $271 per month. Total packages range from $2,500-$5,000+ annually for established businesses with employees.
Do I need workers' comp if I'm a sole proprietor?
No, Maryland doesn’t require sole proprietors without employees to carry workers’ comp. However, coverage becomes mandatory the moment you hire your first employee.
Can I use my personal auto insurance for business?
No. Personal auto policies exclude business use. You need commercial auto insurance for business vehicles.
What happens if my subcontractor isn't insured?
You become liable for their accidents and responsible for providing workers’ comp coverage. Always verify subcontractor insurance before they start work.
How quickly can I get a Certificate of Insurance?
We issue certificates within 24 hours of binding coverage, often same-day.
What if I've had claims in the past?
Yes, you can still get coverage. We work with carriers across the risk spectrum, finding coverage for contractors other agents turn away.
Zip codes We Serve In Carney
21057 / 21234 / 21236
Maryland Construction and Contracting Trades Our Insurance Agency Provides Coverage
- Appliance Repair
- Carpenter
- Concrete Contractor
- Drywall Contractor
- Electrician
- Electrical Equipment Installation
- Excavation Contractor
- Fence Installation
- Fiber Optic Installer
- Flooring Contractor
- Framing Contractor
- General Contractor
- Glass and Glazing Contractor
- HVAC Contractor
- Handyman Services
- Home Renovation and Remodeling
- Landscaper
- Masonry
- Painter
- Paving Contractor
- Plumber
- Roofing Contractor
- Sheet Metal Contractor
- Septic Tank Contractor
- Snow Plowing
- Steel Erectors
- Tile and Stone
- Telecommunications & Equipment Installer
- Utility Contractor
