Indiana Surety Bonds

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Surety Bond Professionals is a family-owned and operated bonding agency with over 30 years of experience. With access to a broad range of surety markets, our expert agents are ready to assist with all of your Indiana surety bond needs.

Required Surety Bonds in Indiana

Typical Indiana bonds include (click on any for more info):

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Required Surety Bonds in Indiana

There are three broad categories of surety bonds in Indiana (and every other state): license bonds, construction and contractor bonds, and court bonds.

Indiana License & Permit Bonds

Indiana requires a number of different business owners and professionals to be licensed and bonded at the state level to operate legally within the state. For example, there are statewide licensing requirements for anyone operating as a collection agency, notary public, mortgage broker, or motor vehicle dealer among others. While contractors are not licensed by the state, many Indiana municipalities require contractors working in those particular jurisdictions to be licensed locally.

Indiana Construction & Contractor Bonds

Both state and local agencies sponsoring public works projects require contractors to obtain a variety of contractor surety bonds such as bid bonds, performance bonds, payment bonds, and others. Each contractor bond serves a specific purpose.

Indiana Court Bonds

Indiana courts require two main types of surety bonds: appeal bonds and probate bonds. Defendants and plaintiffs appealing a court decision often need to purchase an appeal bond, especially when there is contested property or potential damage awards at stake. Anyone appointed to serve in a fiduciary capacity, such as an executor of an estate, a guardian of a minor, or a custodian of an adult, may need to purchase a probate bond.

Get A Quote

If you need to purchase an Indiana surety bond, call us today or request an online quote for the bond you need.

Frequently Asked Questions

There are three parties to every surety bond agreement, which is a legally binding contract:

  • The “obligee” is the state or local agency requiring the surety bond.
  • The “principal” is the party required to purchase the bond.
  • The “surety” is the company underwriting and issuing the bond.
  • The obligee sets the required amount of the bond, which is the maximum amount that will be paid out on a claim. The obligee also spells out the conduct required of the principal in order to avoid claims against the surety bond.

Any party who suffers a financial loss because the principal has violated the terms of the bond has the right to file a claim against the bond. The principal is solely responsible for paying all valid claims.

However, the surety will often pay a claim and wait to be reimbursed by the principal. This ensures timely settlement of the claim and gives the principal some time to gather the necessary funds.

What the principal in a bond agreement actually pays for a surety bond is a small percentage of the required bond amount established by the obligee. That percentage, known as the premium rate, is determined by the surety company based on the applicant’s credit score and other indicators of the likelihood of claims being filed against the bond. Those with good credit can expect a rate of 1-3%. Those with poorer credit may pay a higher premium.
No claim against a bond will be paid until the surety company has investigated and determined that it is valid. After making payment to a claimant, the surety company will demand reimbursement from the principal.