Indiana Surety Bonds
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Common Surety Bonds in Indiana
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Indiana Instant Surety Bonds

How to Get a Surety Bond in Indiana
Your Guide to Surety Bonds in Indiana
Indiana is well known as the birthplace of basketball. However, there is much more to this Midwestern state than just sports. The economy of Indiana is diverse, with a strong manufacturing sector and significant agricultural production. The largest city in the state is Indianapolis, which is also the 12th-largest metropolitan area in the United States. Other major cities include Fort Wayne, Evansville and Gary. The state’s name means “Land of the Indians,” and its early inhabitants include the Mound Builders, Hopewell people and Mississippian tribes.
Indiana is well known for its manufacturing sector. The state has a long history of producing automobiles, aircraft and other manufactured goods. In recent years, the pharmaceutical industry has also become an important part of the Indiana economy. Agriculture is another key sector of the state’s economy. Indiana is one of the top producers of corn and soybeans in the United States, and the state also has a significant livestock industry.
When it comes to business, there are a number of industries that are thriving in Indiana. If you’re looking to start a business in or expand into the state, it’s important to understand the various business and industry regulations that apply. One such requirement is often obtaining an Indiana surety bond.
A surety bond is an agreement between three parties: the surety, your business, and a third party who needs protection (usually the state). It’s a type of insurance that provides financial security if your business fails to meet its contractual obligations.
An Indiana bond is a financial instrument that guarantees the performance of a company or individual when they enter into an agreement with another entity. They can be used by businesses, individuals, and government agencies for many purposes.
There are several types of Indiana surety bonds, and the bond type you need will depend on your business. Some bonds are Indiana required by the state, but many more are optional. It’s important to understand exactly what required bond is needed for your industry before you apply so that you only have to get one.
What is a surety bond? How does a surety bond work?
It’s a type of contract that safeguards another party from financial loss. In the case of surety bonds, there are three parties:
- Principal (the person or business which needs to secure their liability)
- Surety (a third party, often an insurance company, who agrees to assume responsibility for the debt and acts as guarantor)
- Obligee (the person or business for whom the surety bond is being issued)
To issue an Indiana bond, both parties agree to the terms and conditions of a contract that carries an obligation to perform. These are usually written into an agreement that ensures compliance with state laws regarding bonds required in Indiana. The details covered include:
1) Principal’s ability to perform a service and or repay a debt if necessary
2) Surety’s obligation should they become financially liable because the Principal fails to meet their obligations under the contract
The important thing about a surety bond agreement is that all Principals and the approved Surety insurance company in Indiana act as guarantors; however, the bonding company will be responsible for payment due to defaults on contractual agreements under the bond. The bond allows the bonding company to seek repayment from the Principal if a claim is valid.
What is a surety bond used for?
Whats a surety bond you ask? Well, it guarantees an agreement between three parties by securing the obligation in that it is used to:
– To secure performance on contracts;– Guarantee compliance with contract specifications and standards;
– A warranty against defective products;
– Secure licensed professionals such as mortgage brokers
When do you need a surety bond?
Surety bonds are a form of performance security or financial guarantee issued by an insurance company. They are required for a variety of financial transactions, from government procurements to import and export. In the United States, bonds have been used since 1749 to guarantee that a party will fulfill its obligations under a contract or agreement.
Indiana bonds work as an integral part of any business’s success! Typically a transaction, contract, or professional licensing requirement will indicate if a performance bond, payment bond, contract bond, license and permit bonds, or another type of bond is needed.
What are contract bonds?
The largest category of Indiana surety bond is called contractor bonds, or bonds specific to the construction industry. IN contractor bonds are one of the largest markets in the state. Contractor surety bonds more commonly are performance bonds, bid bonds, and payment bonds. Construction bonds account for approximately 70% of all bonds written in the USA.
Required by residential and commercial contractors both big and small, general and across specialty trades. Surety bond Indiana requirements vary by municipality and ensure the protection of the public and consumers via performance bonds for public projects and various trade bonds.
Can I get a surety bond online?
Yes. At Simpli Surety, we have 1000’s of instant issue surety bonds available to our clients on-demand at low surety bond rates. Our surety bond experts are here to help.
How much does a Surety Bond cost?
If you are looking for surety bond cost, the good news is that it’s not as expensive as most people think. Across the industry, Surety bond costs can range depending on the type and terms of the bond. The fee is calculated, also called the surety bond premium, as a percent of the total coverage needed or bond amount, usually ranging anywhere from 1% to 3%. For instance, straightforward license and permit bonds tend to fall on the lower end of the spectrum even below 1%. While a more complex performance bond for a large construction project that carries a higher risk and bond amount, therefore, the surety bond cost can range higher between 1.5% to 2.5% on average.
Surety bond costs could be higher or lower depending on your surety company, the type of work you are doing, and other factors. If you need help determining how much a surety bond will cost for your specific situation, use our search to find the instant issue bonds you need, and often the surety bond cost and bond amount are listed on the application.
At Simpli Surety, we have 1000’s of instant issue surety bonds available to our clients on-demand at a low surety bond rate. The application and approval process is completed quickly, so you can get back to your business.
On the rare occasion, your bond application requires additional underwriting, our surety bond agents with over 40 years of experience will step in to help.
How to Obtain a Bond in Indiana
The state is known for manufacturing, agriculture, and healthcare. Manufacturing makes up a large percentage of the workforce with over 115 billion dollars in exports each year! The biggest industry in Indiana is automobile production just like Michigan and Ohio. Other popular industries include pharmaceuticals, food processing, machinery construction, and metal fabrication. Agriculture is also a big part of Indiana’s economy with over $11 billion in sales each year. The state ranks fifth in the country for corn production and seventh for pork production. There are also quite a few healthcare companies headquartered in Indiana including Wellpoint, Roche Diagnostics, and Cook Medical. With so many different industries, it’s no wonder Indiana is one of the most diverse states in the country!
Indiana is known for many different businesses and industries. Not only does the state provide a great environment to do business, but it also provides access to resources such as high-tech equipment that you can use in your manufacturing facility or office building.
Large or small, many of these industries require companies to obtain bonds in order to operate. An Indiana bond functions as a contract between your business and surety company that guarantees the fulfillment of obligations under specific conditions. This means that surety bonds provide protection against losses resulting from the inability to fulfill contractual agreements on time with customers, clients, or suppliers.
If you are looking for bonded protection, there are a few things to keep in mind. Surety bonds are not always one-size-fits-all. The bond cost and terms will vary depending on the risk involved with your business and industry.
Business owners can get bonded for their businesses to help protect the company’s assets and employees, as well as ensure that industry laws are upheld by all parties involved. Businesses need a certain amount of financial backing before they start operating; this is where an Indiana surety bond comes into play.
Businesses that operate under the authority of federal or state law need a surety bond. These businesses include but are not limited to: banks and other financial institutions; securities brokers and dealers; insurance companies; investment advisors and planners; motor carriers (such as trucking companies); and business of public utilities.
Additionally, businesses who contract for construction work, including developers/builders; architects; professional engineers; contractors; subcontractors; suppliers of materials used in construction; and businesses involved in design-build projects all need a surety bond.
All in all, the industries of Indiana are vast and diverse…if you’re looking for a surety bond required for your business there is no better place than Simpli Surety!
How do you get bonded in Indiana?
In order to bond Indiana businesses, you will need to contact bonding companies that are licensed in the state, such as Simpli Surety. You will then be required to fill out a surety bond application and submit it along with all relevant documentation. Some applications may require additional documents like proof of business bank account balances or your articles of incorporation (bylaws), but Simpli Surety has many instant bonds available in minutes.
If you are approved for coverage, the surety bond company will issue you a policy and send it to you via email. The policy will outline the terms and conditions of your bond as well as the surety company’s responsibilities.
Why would I need a surety bond in Indiana?
You may need a bond in Indiana for your business if you are opening up shop as an independent contractor or self-employed.
An Indiana surety bond is a common requirement for many types of businesses including cotton merchants, public adjusters, and mortgage companies.
Surety bonds are financial guarantees that you promise to abide by the terms of an agreement. Other reasons why businesses may require these include:
– To qualify for a license– Government contracts
– Bonding construction projects
– Organizing as a corporation or limited liability company (LLC) in Indiana
What surety bonds are common in Indiana?
There are a few surety bonds Indiana requires. The most common surety bond types are commercial surety bonds. This type of bond is used for businesses that want to get a license, or for companies that need to show financial responsibility. There are also many types of performance bonds, including construction and contract bonds. Each type of bond has its own purpose and is required for different activities.
Another common bond in Indiana are license and permit surety bonds. These may be required for a company that needs to get a business or professional license from the state of Indiana, as well as any other type of permit. Some examples include contractors, financial institutions, utility companies, and public service corporations. The final category that is important for companies to understand in Indiana is the court surety bond. These can be required when a company needs to appear before a court and present evidence, such as real estate agents and collection agencies.
The types of businesses that typically need surety bonds in Indiana include:
– Banks and other financial institutions– Securities brokers and dealers
– Insurance companies
– Investment advisors and planners
– Motor carriers (such as trucking companies)
– Businesses of public utilities
– Contractors, including developers/builders; architects; professional engineers; contractors; subcontractors; suppliers of materials used in construction; and businesses involved in design-build projects
– Professional service providers, such as CPAs, attorneys, and real estate agents
– Collection agencies and repo firms
– Freight Brokers
All in all, the industries of Indiana are vast and diverse. If you’re looking for a required bond for your business there is no better place than Simpli Surety.
Is it easy to get a bond in Indiana?
It actually is! The state of Indiana has made it really simple and fast to apply. If you choose to get your bond online, the process can be completed within minutes by first filling out an online application!
What are the minimum bonding requirements in Indiana?
The amount of money required as bonding needs in Indiana ranges depending on the industry and type of contract or agreement you plan to enter. There is no minimum amount for this type of bond, but our surety expert partners have to be compensated for any losses they incur on your behalf.
Which government agencies require surety bonds in Indiana?
An Indiana bond is required by a number of government agencies, including the:
– Department of Motor Vehicles– Secretary of State
– Public Service Commission
– State Treasurer
– Board of Accountancy
– Department of Insurance
– Contractors Licensing Board
– Indiana Employment Security Commission
– Department of Labor, Licensing and Regulation
– Department of Revenue
– Office of Attorney General
The types of surety bonds that are required vary depending on the agency. There are bond requirements for other government agencies in Indiana, but the above are some of the most common. Be sure to check with your specific agency to find out their specific bonding requirements.
What are the most popular surety bonds in Indiana?
There are three main types of Indiana surety bonds: performance, payment, and indemnity. A performance bond guarantees that the contractor will complete the project as specified in the contract. A payment bond guarantees that subcontractors, specialty contractors and suppliers will be paid for their work on the project. An indemnity bond protects the owner of a property from any third-party claims arising from the contractor’s work on a project.
Indiana surety bonds are required for many different types of projects. Some examples include:
– Construction or repair work at schools, colleges and universities– Any public works project that requires a bid process in Indiana
– Contractor license bond
– Fidelity Bonds (Fid Bond or Court bonds) – Protects businesses from financial loss or damage caused by employees’ dishonesty or failure to perform their job duties.
– Bid Bonds – Protects the state or other public agencies from financial loss if a contractor fails to complete work as contracted.
– License and Permit Bonds (Permit Bond) – Required by local governments in Indiana that issue licenses, permits, etc., for various types of business activity such as a motor vehicle dealer or professional and occupational regulation
Are there any other types of surety bonds in Indiana?
Yes, surety bonds are also used for many other purposes. Some common uses include:
– Indiana Utility Deposit bond– Indiana Mortgage Broker Bond and Loan Bond
– Indiana License Bonds
– Indiana Contractor License Bond (Residential and General Contractors)
– Indiana Mechanical Contractor License bonds
– Indiana Court Bond or Fidelity Bond
– Indiana Sales Tax bond
– Indiana Motor Vehicles or Auto Dealer bond
– Indiana Mobile Home Dealers bond
– Indiana Public Adjuster bond
Indiana has a major construction industry that requires performance guarantees in the form of surety bonds to protect against failing to meet deadlines. There are also many contractors who require bond protection for their employees – especially when they’re working on bridges, tunnels, or other public works and public construction projects.
What other surety bonds are common?
Common across all states is the forever mainstay Construction industry. As a large and populous state, contracting is big business. Required by residential and commercial contractors both big and small, general and across specialty trades. Indiana’s bonding requirement varies by municipality and trade but all ensure the protection of the public and consumers via performance bonds for public projects.
The best surety company in Indiana is us! SimpiSurety has all of these bonds and more IN surety bonds available instantly. Search for your bond type and apply online in minutes.
Although, whomever you choose, be sure they are a licensed insurance agency or experienced bond specialist through a surety bond agency in Indiana that can help you get bonded for the right bond amount. All surety companies are not the same, so choose wisely when choosing your Indiana bonding agent.
Types of Surety Bonds in Indiana - State
- Indiana – Loan Broker License $50,000-NMLS – A surety bond is required for every loan broker who performs a loan brokerage transaction, as well as anybody applying for registration before assisting in making a third-party loan or promising to obtain loans from other lenders. Buy Now
- Indiana – Mortgage Lender -NMLS – A mortgage lender bond is required by the State of Indian as a condition for any licensed mortgage lender to legally conduct business. The bond guarantees that the mortgage lender will follow all relevant government rules and regulations. Buy Now
- Indiana Vehicle Merchandising Bond-Automobile Auctioneer ($25,000) – Vehicle merchandising is a catch-all phrase that refers to people who work in the automobile or semi-trailer trade. A surety bond is required for individuals who wish to obtain a license. The Indiana Secretary of State, Auto Dealer Services Division will rely on the surety bond as assurance that the license applicant will follow Indiana vehicle merchant law. Buy Now
- Indiana Vehicle Merchandising Bond-Converter Manufacturer ($25,000) – The Indiana Vehicle Merchandising Bond-Converter Manufacturer must post a surety bond of $25,000 to ensure legal business practices and compliance with jurisdictional regulations. The bond is a form of financial security that gives assurances for both the company and its clients in the event of a problem during the transaction or if they break any state laws. Buy Now
Types of Surety Bonds in Indiana - Federal
- Freight Broker Bonds – often referred to as BMC-84 bonds, are a Federal as opposed to state mandate made by the Federal Motor Carrier Safety Commission to conduct business as transportation brokers. Coverage to $75,000. Buy Now
- Durable Medical Equipment Provider Bonds – often referred to as DMEPOS bonds are required of suppliers of prosthetics, orthotics, and durable medical equipment. A federal mandate per the Centers for Medicare and Medicaid Services to mitigate Medicate billing fraud. Min bond requirement of $50,000 per National Provider Identifier needing Medicate billing authorization. Buy Now
- Performance Bonds – this bond covers general performance obligations related to a contract but most often ensures the satisfactory completion of performance by a contractor. The bond penalty is tied to contract value and can be mandated at federal, state, or municipal levels. Buy Now
- Bid Bonds – a construction bond that protects the developer or project owner of a construction project during the bidding process. It guarantees them that if the bidder can or will not honor the terms of the bid, the owner will be compensated. Bid bonds are commonly required on projects that also involve performance bids and payment bonds. Buy Now
- Payment Bonds – these surety bonds are often paired with performance bonds ensuring prompt payment to suppliers and subcontractors on the project. This signals to the owner, supplier, and sub that the contractor will be compliant in working with them to completion and paying on time. Buy Now
Surety Bond FAQ
What is a surety bond?
A surety bond is an agreement between 3 parties, the principal applying for the bond, the Obligee who benefits from the bond and the Surety, the provider of the bond. A licensed surety agency like Simpli Surety is required to act on behalf of the 3 parties to facilitate the bond issuance.
The bond itself ensures the principal will carry out its obligations to the Obligee that acquires their services, in accordance with the conditions of a contract.
The surety company steps in to financially back the Obligee in the event the principal defaults, violates terms or fails to fulfill its obligation. If the surety pays a claim, it seeks reimbursement from the principal.
How do I get a bond?
At Simpli Surety, we’ve taken the sometimes antiquated surety bonding process and made it…well…simple. What takes many brokers and online agencies days, we’ve automated to get your bond fast. From search to submission to getting a bond in your inbox in less time than finishing a cup of coffee.
- 1) Use our Search tool to find your bond.
- 2) Enter the key information and click submit.
- 3) A decision is rendered within minutes.
- If approved, you’ll be sent a payment link and documents to sign electronically. If not approved, our underwriters will alert you of next steps. Sometimes we just need a few more pieces of info to complete the analysis but in most cases, its automated and effortless.
- Your bonds are emailed to your and the Obligee. It’s that fast…and simple.
Why Simpli Surety?
Simpli Surety is a licensed surety bond agency. Our bond professionals have been in the industry for over 40 years. Most online surety bond agencies only provide a quote range, then needing to shop various surety carriers for the bond. This makes the surety bonding process longer and tedious.
Simpli Surety requires basic underwriting information and as soon as you click submit, in most cases we render a decision right away. If approved, simply purchase with a credit card and you’ll have your bond emailed to you and the obligee (beneficiary or regulatory authority) in minutes.
Our instant issue rates are the most competitive in the business. And for more complex bonding situations, our experts will step in and provide a bespoke solution.
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