How to Get Bonded in Indiana

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.


  • 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.