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.

Contract Bonds

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

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!

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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!

Start your surety bond application today! Why us?
  • The lowest possible rates
  • A 100% money-back guarantee
  • Access to specialty programs, not available to small agencies

Contract Bond Application

To apply for a contract bond, download the online form that you require, based on the amount of your contract. Complete the form and send it to us. We 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!

Further Reading


About the author:
Todd Bryant
Todd Bryant is a graduate of Germantown Academy and the University of Pittsburgh College of Business Administration Honors College. He has been President of Bryant Surety Bonds, Inc., an A+ rated Business with the Better Business Bureau, since 2007. Licensed as a producer with the Department of Insurance, he has been published in the National Association of Surety Bond Producers newsletter and on numerous authoritative publications such as The Washington Post, Entrepreneur.com, Azcentral.com and many more.