Indiana Contractor Bonds$5,000-$25,000 Local Requirements

No, Indiana does not require statewide contractor licensing. However, many counties and cities require contractor registration and bonds. Indianapolis, Fort Wayne, South Bend, Evansville, and most major cities require bonds ranging from $5,000 to $25,000. Some trades like plumbers and electricians require separate state licensing.

Major Indiana jurisdictions requiring contractor bonds include Indianapolis/Marion County ($25,000), Fort Wayne ($15,000), South Bend ($10,000), Evansville, Carmel, Bloomington, Hammond, and Gary. Each municipality sets its own bonding requirements. Check with your local building department for specific amounts.

Indiana contractor bond costs vary by bond amount and credit. A $5,000 bond costs $100-$250/year with good credit. A $15,000 bond costs $300-$600/year. A $25,000 Indianapolis bond costs $500-$1,000/year. Contractors with excellent credit often qualify for rates as low as 2% of the bond amount.

Indianapolis and Marion County require contractors to register with the Department of Business & Neighborhood Services and post a $25,000 surety bond before performing construction work. The bond protects property owners from contractor violations. Both general contractors and specialty contractors need registration if working within Marion County.

Indiana-licensed plumbers and electricians must be licensed through local jurisdictions, not statewide. However, many cities require separate bonds for trade contractors. For example, Indianapolis requires plumbing and electrical contractors to post trade-specific bonds in addition to general contractor bonds.

Indiana contractor bonds can be issued within 24-48 hours for applicants with good credit. The application requires business information, personal credit authorization, and details about your local registration. Bonds are delivered electronically for immediate filing with your city or county.

Yes, contractors with credit challenges can obtain Indiana bonds through specialized programs. Rates are higher (typically 3-10% of bond amount) and may require additional documentation or collateral. Most applicants with credit scores above 600 can get approved for municipal contractor bonds.

Yes, Marion County (which includes Indianapolis) requires all contractors to register with the Department of Business & Neighborhood Services and post a $25,000 surety bond. This is one of the most comprehensive contractor registration programs in Indiana. Annual registration renewal is required with continuous bond coverage.

When a claim is filed, the surety investigates to verify validity. Valid claims are paid up to the bond amount, and the contractor must reimburse the surety for all paid amounts plus investigation costs. Claims can impact future bonding ability and may result in suspension of your local contractor registration.

Indiana contractor bonds typically have annual terms matching your city or county registration renewal cycle. Continuous bond coverage is required to maintain active registration. Some municipalities accept continuous bonds that automatically renew as long as premiums are paid.