State governments often require different types of businesses to obtain surety bonds -- a form of commercial insurance that pays a contract on behalf of a bonded business if that business cannot meet a contract or other financial obligation. In the state of Indiana, the state governmental agencies enforce bonding requirements for different types of businesses. You can satisfy bonding requirements through most commercial insurance providers in Indiana.
Research bonding requirements mandated by the state of Indiana for your business or industry. Indiana's Secretary of State office, which handles licensing for automobile dealers, requires dealers to take out $25,000 worth of bonding for their business. The Indiana Department of Natural Resources requires timber buyers to obtain surety bonds of at least $2,000, depending on the timber buyer's annual purchase level. Bonding requirements are also regulated for professional contractors, masons, heating & air conditioning technicians, as well as plumbers working in Indiana.
Contact the Indiana governmental agency responsible for licensing your business or trade. Ask for all applicable forms for licensing and bonding requirements. You typically purchase surety bonds for businesses or professional trades during the state business license application process.
Obtain a surety bond in the amount required by the governmental agency processing your business application. Contact multiple surety bond providers in the state of Indiana to find the most competitive quote for your business. Provide the code number for the type of surety bond required of your business; surety bond code numbers are standardized by the Surety & Fidelity Association of America, or SFAA.
Send proof of your surety bond policy to the Indiana state agency processing your license application. Include any other paperwork required for your license application with your proof of surety bond.
Tips & Warnings
- Generally, bonds are necessary for General Contracting; concrete; electrical; heating and air conditioning; masonry work, stone masonry and brickwork; carpentry or structural; plumbing; and excavating trades.
- Indiana Secretary of State: Dealer Services Division -- Dealer Bond Requirements
- Indiana Department of Natural Resources: Bonding Requirements
- City of West Lafayette: Contractor Bond Requirements
- JW Surety Bonds: Indiana Vehicle Merchandising Bond
- Surety & Fidelity Association of America: Standard Bond Form Number Index
Contractor Bonding Requirements
As a contractor on a job, you are often required to provide bonding. A bond is an assurance that should the contractor...
How to Become a Bail Bondsman in Indiana
If you’re thinking of a career in law enforcement, you might want to consider the exciting world of the bail bondsman. This...
How to Get Insured & Bonded for a Business
How to get insured and bonded for a business, different types of business insurance and bonds, including surety, license and fidelity bonds.
How to Get a State Business License for Lawn Mowing
Starting a lawn mowing business can be a worthwhile and rewarding venture, though the initial start-up procedure can be somewhat frustrating. Because...
How to Get Bail Money
Bail money is required in the majority of states to be released from jail until the court date. The function of bail...
How to Become Licensed, Bonded and Insured
"Licensed, Bonded and Insured" looks nice, reassuring and professional on a business card or in a phone book advertisement. However, few people...
How to Be a Licensed and Bonded Cleaning Service
Owning a cleaning service is an excellent way to earn a living, if you do not mind manual labor. You can choose...
Do Roofers in Indiana Have to Be Licensed?
Breaking into the construction industry with a roofing business isn't a bad plan: Startup costs are low, requiring little more than tools,...
Indiana Contractor Insurance Requirements
While Indiana contractors aren't regulated by the state licensing board, most city and county building departments do require minimum insurance requirements before...