Quick Facts:

  • Regulating Agency: Local city and county governments (no statewide contractor licensing board except for plumbers)
  • Required Bond Amount: $1,000-$30,000 (varies by city/county and contractor type)
  • Cost Range: $50-$300 annually (depending on credit)
  • Required For: General contractors, electricians, HVAC technicians, and specialty contractors in most cities

What Is an Indiana Contractor License Bond?

An Indiana contractor license bond is a surety bond that contractors must file with local government agencies as part of their licensing or registration process. These bonds guarantee that contractors will comply with applicable laws, building codes, and ethical standards, protecting the public from financial harm due to contractor misconduct or code violations.

Who Regulates Indiana Construction Contractor Licensing?

Unlike many states, Indiana does not have a statewide contractor licensing board for most trades. Instead, contractor licensing and bonding requirements are primarily regulated at the local level by individual cities and counties. The one exception is plumbing, which is regulated by the Indiana Plumbing Commission (though no state bond is required for plumbers).

For most contractors, you’ll need to check with each city or county where you plan to work to determine specific licensing and bonding requirements.

What Bond Amount Is Required in Indiana?

Bond amounts vary significantly across Indiana cities and counties. Here are common requirements by location:

General Contractors:

  • Indianapolis: $10,000
  • Evansville: $25,000
  • Fort Wayne: $5,000
  • South Bend: $5,000
  • West Lafayette: $25,000

Electrical Contractors:

  • Indianapolis: $10,000
  • South Bend: $5,000
  • Lafayette: $1,000 (electrical-only permits)

HVAC Contractors:

  • Indianapolis: $5,000
  • South Bend: $5,000
  • Evansville: $25,000

Specialty Contractors:

  • Demolition (Indianapolis): $10,000-$30,000 (depending on class)
  • Sidewalk (Indianapolis): $10,000
  • Right-of-Way/Excavation: $5,000-$25,000 (varies by city)

Since there is no statewide requirement, always check with each city or county where you’ll be working for their specific bond requirements.

How Much Does a Contractor Bond Cost in Indiana?

The cost of an Indiana contractor license bond typically ranges from 1% to 3% of the total bond amount for contractors with good credit. For example:

  • $5,000 bond: $50-$150 annually
  • $10,000 bond: $100-$300 annually
  • $25,000 bond: $250-$750 annually

Factors that impact cost include:

  • Credit score: Better credit means lower premiums
  • Business experience: Established contractors may qualify for better rates
  • Bond amount: Higher bond amounts generally mean higher premiums
  • Location: Different cities have different risk profiles

Many surety companies offer flat rates for smaller bonds (e.g., $50 for a $5,000 bond), and some Indiana contractor bonds are issued instantly with no credit check due to their small amounts.

Who Needs a Contractor License Bond in Indiana?

The following contractors typically need license bonds in Indiana municipalities:

  • General Contractors: Required in most cities and counties
  • Electrical Contractors: Required in most cities for pulling electrical permits
  • HVAC/Mechanical Contractors: Required in many cities for HVAC installation/service
  • Plumbers: Some cities require local bonds despite state licensing; Indianapolis requires a $25,000 bond for connecting to water/sewer services
  • Specialty Contractors: Including demolition, sign installation, roofing, excavation, and concrete work

Remember, requirements vary by location – check with each city or county where you plan to work.

What Other Contractor Bonds Are Required in Indiana?

In addition to standard license bonds, contractors may need:

  • Street Opening/Right-of-Way Bonds: For work that disturbs public property (e.g., $1,500-$10,000 in Hammond)
  • Utility Connection Bonds: For connecting to municipal utilities (e.g., $25,000 in Indianapolis for plumbers connecting to water/sewer)
  • Erosion Control Bonds: For large sites with environmental impact concerns
  • Project-Specific Bonds: Some jurisdictions require bonds for specific high-risk projects

Contractors should also maintain general liability insurance, typically $500,000-$1,000,000 in coverage, as required by most cities.

How Does ContractorNerd’s Application Process Work?

  1. Identify your bond needs: Determine which city/county bonds you need and in what amounts
  2. Apply online: Complete our simple online application with basic business information
  3. Get an instant quote: For many Indiana contractor bonds, approval is instant with no credit check
  4. Pay and receive your bond: Once payment is processed, your bond documents are immediately available
  5. File with the appropriate authority: Submit your bond with your license application or renewal

The entire process typically takes less than 24 hours, and many bonds can be issued instantly.

How Quickly Can I Purchase a Bond?

Most Indiana contractor license bonds can be purchased immediately through our online system. Because many bond amounts are relatively low ($5,000-$10,000), instant approval is common – even without a credit check.

For higher bond amounts ($25,000+) or contractors with credit challenges, approval might take 1-2 business days while underwriters review your application.

Who Files the Bond With the IN Once It Is Purchased?

After purchasing your bond, you (the contractor) are responsible for filing it with the appropriate city or county licensing department. The bond must typically be submitted along with your license application or renewal paperwork.

Some cities require the original bond document with signatures and the surety’s power of attorney attached, so plan to mail or deliver it if needed. Always keep a copy for your records.

Our team can provide guidance on the specific filing requirements for your location.

How Are Claims Handled on an Indiana Contractor Bond?

If a contractor violates building codes, performs defective work, fails to pay subcontractors/suppliers, or otherwise causes financial harm in the scope of their licensed work, a claim can be made against their bond.

The claim process typically works as follows:

  1. The injured party (homeowner, city, etc.) files a complaint with the licensing authority
  2. If found valid, a claim is submitted to the surety company
  3. The surety investigates and may pay damages up to the bond amount
  4. The contractor is legally obligated to reimburse the surety for any paid claims

Claims against your bond can affect your ability to renew your license and obtain bonds in the future, so it’s important to address any issues promptly and professionally.

Frequently Asked Questions (FAQ)

Can I get a contractor bond with bad credit? Yes, though premiums may be higher (typically 5-10% of the bond amount instead of 1-3%). Some smaller bond amounts ($5,000-$10,000) may still qualify for standard rates or flat fees regardless of credit.

What happens if I work without a bond? Working without a required bond can result in penalties including fines, stop-work orders, and even license suspension. Additionally, unbonded contractors cannot legally pull permits in most jurisdictions.

When do I need to renew my bond? Most contractor bonds in Indiana are annual and must be renewed before they expire. Some cities (like Indianapolis) align bond terms with their license cycles (e.g., two-year terms expiring December 31 of even years). Always keep track of your bond expiration dates.

What’s the difference between a bond and insurance? A bond primarily protects the public and government agencies from financial harm caused by contractor misconduct, while insurance (general liability, workers’ comp) protects the contractor. Bonds must be repaid if a claim is made, unlike insurance.

Ready to Get Your Indiana Contractor License Bond?

Apply Now for an instant quote on your Indiana contractor license bond. Our streamlined process makes it easy to get bonded quickly so you can focus on growing your business.