Two bonds and an endorsement stand between a fleet and an excessive load
Maryland’s permit program is documented in the Maryland Oversize/Overweight Hauling Permit Manual, published by the State Highway Administration’s Motor Carrier Division and stamped on its cover “Permit Manual as of April 10, 2008.” It sets out two separate surety instruments plus an insurance endorsement, and they do different jobs.
The first is a credit instrument. The manual’s general information section explains that permits are paid for by check or money order unless a credit bond has been established, and that an operator who wants to charge to an account and be billed at the end of the month must “set up a credit bond in the amount of not less than $3,000.00.” It is a billing arrangement secured by surety. A fleet pulling permits continuously is a fleet that wants one; a fleet pulling two a year is not.
The second is a damage instrument, and it is not optional. The manual’s excessive-load requirements state flatly that “All excessive loads require a performance bond or a contractual liability bond.” Excessive is defined by threshold rather than by judgment: dimensions of 120 feet or more in length, 16 feet or more in width, 16 feet or more in height, or weight exceeding 150,000 pounds or 27,000 pounds on any axle on Interstate highways in Maryland, or exceeding 120,000 pounds or 27,000 pounds on any axle on Maryland State highways.
The performance bond form itself, SHA 74.2 HP 10A, binds the principal to comply with the permit’s terms, complete the permitted work to the Administration’s satisfaction, and save the State harmless from expense arising from noncompliance or from damage growing out of the principal’s negligence. The manual attaches a retention rule to it: the Hauling Permits Unit requires that a performance bond be kept on file for a minimum of 1 year from the date of the oversize or overweight move, described as office policy based on COMAR 11.04.03.02(d)(1–3), because damages from an excessive move may not surface immediately.
The alternative instrument is an endorsement rather than a bond, and its limit is fixed. The manual’s contractual liability clause has the insurer indemnify and hold harmless the State Highway Administration and the State of Maryland from all loss arising from damage to road beds and wearing surfaces of highways and structures used by the permittee, and to all sub-surface installations, signs and signals — and states that “the Company’s total limit of liability with respect to the insurance afforded by this endorsement shall not exceed an aggregate of $100,000.00.”
That aggregate is the number to carry into a coverage conversation, because it is an aggregate rather than a per-occurrence figure and it is the State’s recovery, not the permittee’s. An operator relying on the endorsement rather than a bond has capped what the State can recover through that route at $100,000.00 in total; it has not capped what the permittee owes. § 24–112(e) prohibits violating any condition of a permit, and the manual notes the Administration may also require a $200.00 fee for monitoring by a District Office representative and a $250.00 fee for escort by off-duty Maryland State Police Troopers, with 48 hours’ notice to the State Police required for a move. A general liability program written for a Maryland permit hauler should be read against those instruments rather than alongside them.