Indiana Contractor License Bond ($5,000–$30,000)

Indiana Contractor License Bond Overview: Local Bonds From $5,000

• Purpose: Protects property owners and the city if you break local code or leave valid claims unpaid.
• Who Needs It: Contractors licensed, listed or registered by an Indiana city or county, such as Indianapolis, South Bend, Hammond and West Lafayette.
• Regulating Body: Local licensing authorities. The Indiana Plumbing Commission, under the Indiana Professional Licensing Agency (PLA), licenses plumbers statewide without a bond.
• Required Amount: $5,000 to $30,000, set by local ordinance; $10,000 for an Indianapolis listed contractor.
• Premium Rates: Start at $100 per year — typically 1%–3% of the bond amount.
• Disclaimer: Requirements, timelines, and bond costs listed on this page are accurate as of October 23, 2026, but are subject to change by the Indiana licensing authority or surety underwriters — for current rates and requirements, call 844-806-2663.

Indiana Contractor License Bond Requirements Are Set Locally, Not by the PLA

Indiana does not impose a single statewide contractor license bond requirement for all contractors. Bonding requirements are often established by the city or local jurisdiction and vary by license and work type. The state licenses only plumbers. Even that license carries no bond. The Indiana Professional Licensing Agency (PLA) oversees the Plumbing Commission, which repealed its bond rules in 1989. Claims now go to the Plumbers Recovery Fund.

• Regulator — The Indiana Plumbing Commission licenses plumbing contractors statewide under IC 25-28.5-1 (PLA plumbing licensing information); Indianapolis licenses other trades through the license administrator in the Department of Business and Neighborhood Services (Indianapolis contractor licenses).
• Bond amount — Each local ordinance fixes the amount, from $5,000 in South Bend and Hammond to $30,000 for an Indianapolis type A wrecking contractor.
• Renewal — Indianapolis listings run 2 years, from January 1 of an odd year through December 31 of the next, and a bond lapse is grounds for suspension of up to 365 days or revocation.
• Filing — No statewide form exists; you file the executed bond with the local application, and Indianapolis accepts an irrevocable letter of credit in the same amount, subject to approval.
• Unique rule — Hammond’s $5,000 bond names the Board of Lake County Commissioners and covers every city and town in Lake County (Hammond contractor application).

If you’re not sure which local bond applies, call us and we’ll confirm it before you apply.

Local Contractors From Indianapolis to West Lafayette Need an Indiana Contractor License Bond

You need an Indiana contractor license bond if a city or county licenses, lists or registers your trade.

• Indianapolis / Marion County listed contractors doing construction, land alteration, sewer, driveway or excavation work — $10,000
• Indianapolis electrical contractors — $10,000
• Indianapolis heating and cooling contractors, all 12 license types — $5,000
• Indianapolis wrecking contractors — $30,000 type A, $20,000 type B, $10,000 type C
• South Bend / St. Joseph County building contractors and subcontractors — $5,000 for one year
• Hammond and other Lake County contractors — $5,000, plus a $10,000 street opening bond for plumbing, boring and underground utility contractors
• West Lafayette general contractors — $25,000; their subcontractors — $5,000 per trade
• Evansville sidewalk contractors — $5,000 annual
• Temporary plumbing contractor license applicants — a bond on an Indiana Plumbing Commission form

Plumbers are the main exception. Regular state plumbing license holders, water well drillers and South Bend owner-occupants on their own homes need no license bond. Indianapolis only registers state-licensed plumbers.