Md. Code Regs. 26.05.02.05

Current through Register Vol. 51, No. 20, October 4, 2024

Section 26.05.02.05 - Bond and Liability Insurance Requirements

A. Amount of Bond and Insurance. Before a person may be licensed by the Board, that person shall demonstrate to the satisfaction of the Board that all practice of well drilling to be done by the person will be covered by a performance bond and contractor's liability insurance as set forth below:

(1) Master well driller:

(a) Bond -------------------------------------- $5,000 aggregate;

(b) Liability Insurance:

(i) Bodily Injury ----------------------- $100,000 each person, $300,000 each occurrence,

(ii) Property Damage ----------------- $50,000 each occurrence, $50,000 aggregate.

(2) Journeyman Well Drillers, Well Rig Operators, and Apprentices. Bond and liability insurance is not required. All practice of well drilling done by these licensees shall be covered by the bond of the principal licensee and the liability insurance of the principal licensee or the principal licensee's employer.

(3) Water pump installers and water conditioner installers:

(a) Bond -------------------------------------- $2,000 aggregate;

(b) Liability Insurance:

(i) Bodily Injury ----------------------- $100,000 each person, $300,000 each occurrence,

(ii) Property Damage ----------------- $50,000 each occurrence, $50,000 aggregate.

B. Form of Bond and Liability Insurance.

(1) The initial bond shall be completed on a form provided by the Board.

(2) Before the Board approves the continuance of a bond or contractor's liability insurance, the applicant shall demonstrate that the form of the bond and insurance is acceptable to the Board.

(3) Subject to approval by the Board, liability insurance may be obtained in the name of the company that employs or will employ licensees on particular jobs.

C. Claims Against Bond. A claim against a bond is made to the corporate issuer of the bond, and not to the Board.

D. Period of Liability. The period of liability of a bond is 2 years after the submission of the last accepted well completion report. If there is an outstanding claim, the bond may not be released until the claim is resolved and the 2-year period has passed.

E. Effect of Cancellation or Other Loss of Bond or Liability Insurance. Subject to the provisions of the Administrative Procedure Act, the Board shall suspend the license of any licensee if the licensee becomes unbonded or uninsured. A licensee who has a bond or liability insurance cancelled or otherwise becomes unbonded or uninsured shall immediately notify the Board of this event. Upon request by the Board, the licensee shall return the suspended license to the Board. A suspended license that is returned to the Board under this section will be reactivated and returned to the licensee only if the licensee demonstrates to the satisfaction of the Board that the bonding and insurance requirements of §A, of this regulation, have been satisfied.

F. Prohibition. A licensee may not practice well drilling or exercise any of the privileges associated with having a license unless the licensee is covered by a valid surety bond and contractor's liability insurance as set forth in §A, of this regulation.

Md. Code Regs. 26.05.02.05