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Indiana Construction Bonds

At Surety Bonds Agent, we offer a full range of surety bonds nationwide through an extended carrier network. Continue below to learn more about Indiana construction bonds. If you have additional questions or want to explore bonding solutions for your business, speak with one of our knowledgeable surety bond experts.

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  1. Personal Info
  2. Address
  3. Bond Type
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about bond type

What Is an Indiana Construction Bond?

Indiana construction bonds are designed to protect project owners from the financial losses that can occur due to the unlawful or unethical actions and business practices of the contractors they hire. A contractor (the bond’s “principal”) who commits regulatory or contractual violations to the financial detriment of a project owner (the bond’s “obligee”) is held accountable and is legally obligated to pay any valid claim.

img What Types of Indiana Construction Bonds May Be Needed?

There are no statewide license and bonding requirements for contractors in Indiana. However, some local jurisdictions do require certain types of contractors to be licensed, and purchasing a contractor license bond may be a prerequisite for licensure.

Indiana’s “Little Miller Act” requires bid bonds, performance bonds, and payment bonds from contractors working on state-funded public works projects estimated to be above $200,000 in value. Some local jurisdictions and owners of private construction projects also require bid, performance, and payment bonds. While these are the most common Indiana construction bonds, both public and private project owners may require others, such as:

  • Maintenance bonds
  • Subdivision/site improvement bonds
  • Supply bonds
  • Solar decommissioning bonds
  • Right of Way bonds
  • Contractor license bonds
img How Does an Indiana Construction Bond Work?

There is a third party to an Indiana construction bond in addition to the obligee requiring the bond and the principal purchasing it. The “surety” is the bond’s guarantor.

Although the principal is legally obligated to pay valid claims, the surety guarantees payment by agreeing to extend credit to the principal. To ensure that the claim is resolved, the surety will pay the claimant directly to be reimbursed later. If the principal does not repay the debt in accordance with the surety’s credit terms, the surety can take legal action to recover the funds.

costs

How Much Does It Cost?

The surety establishes the premium rate based on the risk the surety will take on in agreeing to extend credit to the principal. The primary risk is not being repaid for claims paid on behalf of the principal. That risk is measured using the principal’s personal credit score.

A high credit score is correlated with low risk, so the premium rate will also be low. A low credit score results in a higher premium rate because the risk to the surety is greater.

The premium rate for a principal with good credit usually is in the range of 1% to 3%.

step by step guide

How Do Indiana Construction Bonds Work?

  • Choose Your Bond Type

    Select the bond you need — commercial, contract, or any specialized bond. We help you find exactly what is required in your state.

  • Submit a Quick Application

    Complete a short online form. It only takes a few minutes, with no extra paperwork or long verification steps.

  • Get Approved & Receive Your Bond

    Get fast approval and receive your bond instantly by email. Your document is ready to use right away.

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Why Work With Us?

Easy Application Process

Simply fill out our convenient online application form to get started.

Extensive Carrier Network

We work with a wide range of carriers to provide many options to our clients.

Competitive Rates

As an independent agency, we can leverage our carrier network to find the most competitive rates for the bonds you need.

Quick Turnarounds

We work to get you bonded as quickly as possible, often in 24 hours or less.

Exceptional Service

Our experienced surety bond agents provide personalized assistance to help you understand your bonding requirements and options.

Call us Today!

And get a free consultation.

866-362-6637
Testimonials

What our customers say about us

Super easy process. I found the bond I needed in minutes and received the approved document the same day. Great experience overall.

Emily R., Business Owner
Contractor

The application was fast, the support team was responsive, and the pricing was clear. Very smooth and professional. Everything was explained clearly, and I appreciated how quickly I received my bond.

Jason M., Contractor
Small Business Owner

Super easy process. I found the bond I needed in minutes and received the approved document the same day. Great experience overall.

Emily R., Business Owner
Oberman & Oberman

The application was fast, the support team was responsive, and the pricing was clear. Very smooth and professional. Everything was explained clearly, and I appreciated how quickly I received my bond.

Jason M., Contractor
Oberman & Oberman

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Request an online quote today! Or speak with one of our knowledgeable surety bond agents about the commercial bonds you are interested in.

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