1.3 Mandatory Insurance, Advertising & Business Regulations

Insurance, Advertising, Display and Change-Notice Rules

Compliance rule: Maryland separates general-liability and property-damage minimums. Do not replace the statutory “and” with an assumed combined-single-limit alternative, and do not assign an insurer a notice duty that the statute places on the license holder.

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1. When Insurance Is Required

Section 9A-402 applies when the holder of a Master, Master Restricted, or Limited license contracts to provide HVACR services on the licensee's own behalf or on behalf of another HVACR business. The work, including completed operations, must be covered by both:

• General liability insurance of at least $300,000.
• Property-damage insurance of at least $100,000.

The statute states two separate minimum coverages. A policy may package those protections, but a candidate should not convert the text into an alternative $400,000 combined-single-limit rule unless the current policy form and Board expressly establish equivalent compliance.

The license holder may buy the insurance, or the HVACR business that employs the contractor-level license holder may buy it. Employer coverage applies to the insured employment; it does not automatically protect unrelated work the license holder performs outside that job. Licensed apprentices, journeymen, and journeymen restricted do not need separate insurance while working for and under the control and supervision of an insured Master, Master Restricted, or Limited licensee.

An applicant subject to § 9A-402 must submit proof of insurance with the application. The Board may not issue or renew the applicable license without proof. The license indicates whether the holder meets the insurance requirement.

2. Cancellation and Criminal Consequence

Section 9A-402(f) places the cancellation notice duty on the holder of the Master, Master Restricted, or Limited license. The license holder must give the Board notice at least 10 days before the cancellation becomes effective. An insurer's certificate-holder practice can help communicate policy status, but it does not replace the statutory duty.

Section 9A-505(b), not § 9A-502, supplies the criminal consequence. A person who violates § 9A-402 is guilty of a misdemeanor and, on conviction, may be fined up to $1,000, imprisoned for up to six months, or both. A lapse should not be described as an automatic statutory suspension; rather, contracting without the required coverage violates the insurance provision and can also affect issuance, renewal, and discipline.

Section 9A-402(g) also addresses local surety bonds. If a local government or similar subdivision requires an HVACR surety bond, the person may satisfy that requirement by submitting proof of the insurance required by § 9A-402.

3. License and Vehicle Display

Section 9A-401 requires each Master, Master Restricted, or Limited contractor to display the license and license number conspicuously at the principal place of business. The license number must also appear on each vehicle used on the job to provide HVACR services.

Except in Anne Arundel County, a county or municipality may not require a separate local certificate number to be displayed on each job vehicle. This exception concerns a local certificate number; it does not remove the statewide vehicle-display rule.

The current PSI Maryland bulletin gives the exam-ready display convention: the category number and registration number must appear on work vehicles and in advertising, and the letters and numerals must be at least 1.5 inches high. It presents an example such as “MD-HVACR-01-2000.” The official material does not establish a universal “both sides and rear” placement rule, so do not memorize that unsupported geometry. Make the identifier conspicuous and comply with any lawful, project-specific rule.

4. Advertising

Section 9A-404 focuses on who stands behind an HVACR business advertisement. Each advertisement in the name of a person providing HVACR services must include both:

1. The license number of the Master, Master Restricted, or Limited holder employed and designated to direct and control the business's HVACR services.
2. That designated license holder's name.

The PSI bulletin applies the identifier requirement broadly to media such as contracts, printed material, radio and television, and electronic media. That is why an online ad, proposal, or contract should not omit the contractor credential simply because no service vehicle is involved.

Do not invent an exhaustive statutory contract checklist from § 9A-404. Good business practice may call for customer identity, scope, price, payment schedule, change-order procedure, warranties, permit responsibility, and cancellation terms. Those provisions can be required by other law or by a particular transaction, but Title 9A's advertising section specifically tests the designated contractor's name and license number.

5. Name, Address and Employment Changes

Section 9A-401(c) requires every licensee to give the Board written notice of a change in name, address, or employment at least 10 working days before the change takes effect. Three details matter:

• The notice is written.
• The period is measured in working days.
• The deadline is before the effective change, not ten calendar days after it.

The Board's current public mailing address is 100 S. Charles Street, Tower I, Baltimore, Maryland 21201. Because offices and submission methods can change, use the Board's live contact page when filing rather than relying on an old study-guide address.

6. Applied Compliance Checks

Scenario A: A Master works for an insured company but contracts personally for a weekend replacement. The employer's policy is not presumed to cover work outside the employment scope. The Master must ensure the personal contract and completed operations have the two required coverages.

Scenario B: A business advertises under a trade name and lists only the company phone number. The advertisement is incomplete under § 9A-404 if it omits the name and license number of the designated contractor-level license holder.

Scenario C: A licensee plans to move the business next Friday. Notice sent after the move is late even if sent within ten calendar days. The statute requires written notice at least ten working days before the change.