Indiana Surety Bonds Overview
Applicants for a business license in Indiana are often asked to submit a surety bond as part of the application process. Similarly, contractors that want to bid or perform on state or federal construction projects over a certain dollar amount are also frequently required to get bonded.
Why are bonds required?
Surety bonds serve as a guarantee that the bonded party (the bond principal) will adhere to certain conditions. Such conditions include compliance with state laws and regulations but also compliance with contracts and agreements that the principal participates in.
The further purpose of bonds is to guarantee that the public or the state (the bond obligees) will receive compensation for any losses or damages due to a principal’s violation of the bond agreement.
Want to know more about how bonds work? See our comprehensive ‘What is a surety bond’ guide!
If you know what type of bond you need, simply search for it in the table below and follow the application link.
If you are new to bonding, read on below about the different types of surety bonds, how much they cost and how you can get bonded in Indiana.
Find the Bond You Need
The table below contains a list of only the most popular surety bonds. If you can't find yours, fill out our online application and select "Not in the list".
|Livestock Dealers (Non-Packers, Stockyards) Bond||Indiana State Board of Health||Livestock Market Facilities and Dealers Bond||Apply Now|
|Contractor License (No P&P Language) Bond||IN Dept of Natural Resources||Timber Buyer||Apply Now|
|Contractor License (No P&P Language) Bond||Consolidated City of Indianapolis||General Contractor License Bond||Apply Now|
|Contractor License (No P&P Language) Bond||Saint Joseph County Health Dept.||Saint Joesph County Health Department General Cont||Apply Now|
|Contractor License Performance & Payment (Local) Bond||Consolidated City of Indianapolis||Contractor License Bond||Apply Now|
|Contractor License Performance & Payment (Local) Bond||LaPort County||Building Contractor Bond||Apply Now|
|Contractor License Performance & Payment (Local) Bond||Marshall County Building||Marshall County General Contractor License||Apply Now|
|Contractor License Performance & Payment (Local) Bond||City of La Porte||Building Contractor Bond||Apply Now|
|Contractor License Performance & Payment (Local) Bond||City of Richmond, Indiana||Repair or Removal of Unsafe Building Bond||Apply Now|
|Contractor License Performance & Payment (Local) Bond||Lake County Plan Commission||Waterproofing Contractor Bond (Lake County Plan Co||Apply Now|
|Contractor License Performance & Payment (Local) Bond||The City of Gary||General Contractor Bond (Lake County, IN)||Apply Now|
|Excess Weight, Other Highway & Street Permit Bond||The City of Mishawaka Indiana||Excavatin in Streets Bond||Apply Now|
|Collection Agency Bond||State Board of Accounts||Collection Agency||Apply Now|
|Debt Consolidators Bond||IN Consumer Protection Division||Foreclosure Consultant/Credit Services Organizatio||Apply Now|
|Debt Consolidators Bond||State of Indiana Office of Attorney General||Credit Services Organization||Apply Now|
|Mortgage Broker (1st & 2nd Mortgages) Bond||Securities Commissioner||Loan Broker||Apply Now|
|Mortgage Lender/Banker (1st & 2nd Mort.) Bond||Securities Commissioner||First Lien Mortgage Lending||Apply Now|
|Mortgage Lender/Banker (1st & 2nd Mort.) Bond||State of Indiana Dept of Financial Institutions||Mortgage Lending||Apply Now|
|Auto & Mobile Home Dealers (New & Used) Bond||Indiana Secretary of State Dealer Division||Vehicle Merchandising Certificate Bond||Apply Now|
|Auto & Mobile Home Dealers (Used Only, No New) Bond||Indiana Secretary of State Dealer Division||Vehicle Merchandising Certificate Bond||Apply Now|
|Auto & Mobile Home Dealers (Used Only, No New) Bond||State of Indiana Dealer Division||Auto & Mobile Home Dealers (Used Only, No New) Bon||Apply Now|
|Sport Permits Bond||Indiana Gaming Commission||Boxing & Unarmed Combat Promoters||Apply Now|
|Medicare & Medicaid (Durable Equip, State) Bond||Indiana Family and Social Services||Medicaid Bond||Apply Now|
|Medicare & Medicaid (Durable Equip, State) Bond||Family and Social Services Administration||Medicaid Transportation Provider Bond||Apply Now|
|Professional Licenses (All Other) Bond||Indiana Department of Insurance||Discount Medical Program Organization Bond||Apply Now|
|Professional Licenses (All Other) Bond||City of Shelbyville||City of Shelbyville Contractor License Bond||Apply Now|
|Professional Licenses (All Other) Bond||Indiana Secretary of State Securities Division||Internet Web Site Operator||Apply Now|
|Professional Licenses (All Other) Bond||IDEM Solid Waste Permits Section, Office of Land||Closure/Post-Closure Bond||Apply Now|
|Schools (All) Bond||Commission on Proprietary Education||Institutional Surety Bond||Apply Now|
|Alcohol (Manufacturers, Warehouses, Wholesalers) Bond||Indiana Alcoholic Beverage Commission||Alcohol Beverage||Apply Now|
|Cigar/Cigarette & Tobacco Tax Bond||Indiana Department of Revenue||Other Tobacco Products Distributor's License||Apply Now|
|Fuel Tax (All Others, Sellers & Users) Bond||Dept of Revenue Fuel Tax, Bonds & Licensing||Special Fuel License||Apply Now|
|Fuel Tax (All Others, Sellers & Users) Bond||Indiana Department of Revenue||Gasoline Distributor's License Bond||Apply Now|
|Miscellaneous Taxes Bond||Indiana Department of Revenue - OSW Services||Permit Fee Bond||Apply Now|
|Wages & Fringe Benefits Bond||Intl Brotherhood of Electrical Workers Local 531||IBEW Local 531 Contractor's Wage, Fringe Benefit a||Apply Now|
|Fringe Benefits Only Bond||Intl Brotherhood of Electricial Workers Local 153||IBEW Local 153 Contractor Wage Bond||Apply Now|
Types of Surety Bonds in Indiana
There are three main types of surety bonds which you can obtain:
License and permit bonds - these are required for business and professional licensing purposes
Contract bonds - these bonds must be obtained by contractors working on public, federal, and sometimes private projects
Court bonds - these bonds may be requested by a court in cases of appeals or if a court appoints someone a guardian or fiduciary
License & Permit Bonds
Businesses who need to be licensed before they can lawfully operate in the state of Indiana will typically be asked to get bonded in order to get their license. Those who are renewing their licenses also need to renew their bonds. This is why these bonds are called ‘license and permit bonds’. They are also known as commercial bonds.
For example, auto dealers in Indiana will need to obtain an Indiana auto dealer bond upon getting licensed or when renewing their license. These bonds, along with mortgage broker bonds and freight broker bonds are some of the most popular bonds issued in the state though many other businesses also require a bond.
These bonds guarantee that licensed and bonded businesses will comply with the state legislation which governs their type of business and the obligations and responsibilities they have.
If you are a licensed and bonded contractor in Indiana, you may need to obtain contract bonds prior to bidding or commencing work on a federal or state construction project over a certain amount. Private construction projects sometimes also require contractors to obtain the relevant contract bonds to protect project owners.
Among other things, the purpose of these bonds is to guarantee that bonded contractors perform according to contract conditions. They also guarantee that they will pay their subcontractors, suppliers and laborers in a timely fashion
Court bonds are used in court cases, such as the appeal of a judgement or the appointment of a fiduciary. In both cases, the respective Indiana court will most likely require the posting of a court bond as a form of guarantee.
If you are still not sure which bond you need or how to comply with the bonding requirements, give us a call at (866)-450-3412.
How Much Does a Surety Bond Cost in Indiana?
The cost of your Indiana surety bond depends on the amount of your bond and on your financial status as an applicant.
What is the difference between bond amount and cost?
The bond amount is the maximum amount of compensation that a surety will extend to а bond’s obligees if they file a claim against the bond. This applies to all bonds - the bond amount is the amount of coverage.
The cost of your surety bond, on the other hand, is only a fraction of that full amount. It is a percentage, a premium of the full amount. The rate of your premium is determined by the surety bond company when you apply for your bond. Depending on a number of factors that sureties take into account, they offer different rates to their clients.
Which factors influence my bond rate?
The most important factor for all bonds when determining the rate of your bond is your personal credit score. But it is not the only thing that sureties take into account. Other considerations include:
- Your financial statements
- Your business’ financial statements
- Your industry experience
- Other financial and business factors
For high credit scores, sureties offer clients a rate between 1%-4% of the total bond amount. These are also known as standard market rates.
Applicants with lower credit, past bankruptcies or tax liens can also apply for a surety bond. Such applicants are usually offered rates between 5%-15% of the total amount due to increased risk for sureties when issuing bonds under such conditions.
To get an estimate quote on your surety bond, go ahead and give our surety bond calculator below a try!
Surety Bond Cost Calculator
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Our Surety Bond Cost page is also a great resource on how surety bonds work, why you need surety bonds and how you can get bonded. Make sure to check it out!
How to Get Bonded in Indiana
If you’ve found what you were looking for, you’re ready to get bonded! See the sections below to apply for the bond you need.
License bond application
To apply for a license bond, go ahead and complete our 1-page online bond form. We’ll be in touch with you shortly, and provide you with a free and exact quote on your bond!
Contract Bond Application
To apply for a contract bond, complete the online application. Our surety specialists will then contact you to provide you with further information and continue your bonding process.
If you require more information about the bonding requirements or have any other bond-related questions, call us at (866)-450-3412 anytime!