FAQs

Individual Coverage HRA (ICHRA) is an arrangement where the employer reimburses employees tax-free for individual-market health insurance premiums and medical expenses, instead of offering a traditional group health plan. ICHRAs work especially well for: (1) small employers whose workforce is best served by choice (different employees, different plans), (2) employers with employees in multiple states or remote workforces, (3) employers who want a predictable cost

Fully-insured is the traditional model — you pay a fixed premium to a carrier (CareFirst, Kaiser, UHC, etc.) and they bear all claims risk. Self-funded means you (the employer) pay claims directly out of a claims fund and buy stop-loss insurance to cap your exposure on high-claim individuals; used primarily by larger employers. Level-funded is the middle option that’s grown rapidly for small

In Maryland, DC, and Virginia, you can offer small-group health insurance with as few as two enrolled employees (one employee and one owner counts). Group plans become available, more carrier-competitive, and more plan-design flexible as you grow toward 50 employees. At 50 full-time-equivalent employees, the Affordable Care Act’s Applicable Large Employer (ALE) mandate kicks in — you must offer affordable, minimum-value health coverage to full-time employees

Yes — for contractors looking to grow their bonded work volume, bonding capacity is a function of working capital, net worth, financial-statement quality, and prior bonding history. We work with contractors and their CPAs to: (1) present financials to sureties in the format they expect, (2) establish an initial open bonding line with single-project and aggregate capacities, (3) structure work-in-progress reporting that supports capacity increases,

Yes — although standard-credit principals get the best rates, specialty surety markets exist specifically for credit-challenged, newer, or higher-risk principals. Premium is higher (often 3%–10%+ of bond amount), and sureties may require additional collateral (cash, letter of credit, or third-party indemnity) for larger bonds. Many small license and permit bonds (MHIC, motor vehicle dealer, notary, freight broker) can be

Federal construction prime contracts over $150,000 require both performance bonds and payment bonds under the Miller Act, each typically at 100% of contract value. Many federal solicitations also require a bid bond at 20% of bid amount (capped at $3M) as a condition of bid submission. Federal bonds must be issued by sureties listed in Treasury Department Circular 570 (“T-listed sureties”) — and the contracting officer will

The Maryland Home Improvement Commission (MHIC) bond is a $20,000 surety bond required for businesses licensed by MHIC to perform home improvement work in Maryland (most residential renovation, remodeling, repair, and addition work). The bond protects Maryland homeowners harmed by contractor misconduct — incomplete work, code violations, deposit theft, or other actionable behavior. Premium typically runs $100–$500/year for standard credit. The

Premium varies by bond type, bond amount, and the principal’s credit and financial profile. Standard-credit pricing typically runs 1%–3% of the bond amount annually for most license, permit, and small contract bonds. Credit-challenged principals access specialty markets at higher rates, typically 3%–10% or more. For larger contract bonds (performance and payment over $1M), pricing benefits from established working capital and financial-statement quality — strong contractors

No — although surety bonds are usually issued by insurance companies and regulated under state insurance law, they work fundamentally differently from insurance. Insurance transfers risk from the policyholder to the carrier; when a covered loss occurs, the carrier absorbs the cost. A surety bond is a financial guarantee in which the surety company pays the obligee (the party protected by the

Pricing varies significantly by profession, revenue, limits, deductible, and claim history, but rough ranges for a small firm (under $1M revenue, no prior claims) with $1M/$1M limits: Management or HR consultants: $1,000–$2,500/year Accountants / bookkeepers: $1,200–$3,500/year IT consultants / small MSPs: $1,500–$4,500/year (tech-E&O usually bundled with cyber) Marketing agencies / designers: $1,000–$2,500/year Architects / engineers: $2,500–$7,500/year (significantly higher for design-build) Financial advisors / RIAs: $1,500–$5,000/year