For individuals and businesses based in the city of Indianapolis, there are a number of occasions when a surety bond is required for their legal operations. In the most common cases, you will need to obtain license bonds, so that you meet licensing requirements imposed by city, local, state or federal authorities.
Most Popular Surety Bonds in Indiana
Car dealers in Indiana have to obtain a $25,000 surety bond. They need to provide it to the Secretary of State’s Dealer Division. The rule applies to all dealers, including those located in Indianapolis.
Freight brokers across the U.S. have to comply with the federal licensing requirements. The Federal Motor Carrier Safety Administration requires all brokers to post a $75,000 bond.
In Indiana, there is no state licensing requirement for contractors. However, many types of contractors need a license and have to present a bond to the City of Indianapolis if they want to operate within its territory. Electricians and wrecking type C contractors have to obtain a $10,000 bond, heating and cooling contractors - a $5,000 bond, wrecking type A contractors - a $30,000 bond, and wrecking type B contractors - a $20,000 bond.
Fuel selling operators in Indiana have to get licensed with the Indiana Department of Revenue. Posting a surety bond is one of the requirements.
Indianapolis surety bonds explained
Indianapolis surety bonds, just like all other bonds, represent a contract between three entities. The principal is the one who needs the bonding. The obligee is the authority that requires the bond. Last but not least, the surety is the third party that provides the bond.
You’re most like to need license bonds when you work in Indianapolis. Contract bonds are also commonly used, as they are required from construction specialists who want to bid on projects. The types of contract bonds you may need include bid, payment and performance bonds.
Additionally, you may have to post court bonds in Indianapolis. Some situations in which you may need them is if you want to appeal a court case, or if you have to take the role of a fiduciary for another person’s finances and property.
The goal of surety bonds is to ensure that you will follow the law in your activities. They can provide a financial compensation to harmed parties through bond claims. The maximum sum that you may need to reimburse claimants is the bond amount you have posted.
Do you want to learn more about the ways bonds work? You can reach us at (877) 514-5146. Lance Surety Bonds’ experts are here to help.
Frequently Asked Questions
What is the surety bond cost?
The cost of your Indianapolis surety bond is formulated on the basis of the bond amount required from you by authorities. You need to cover only a bond premium, which is a fraction of this amount. For applicants with stable finances, the premium is often between 1% and 5%, but also depends on the bond type.
Your surety has to examine your personal and business finances to assess the bonding risk. It needs to consider your credit score, business financials, plus liquidity and assets you showcase. Your bond price is likely to be lower if your overall profile is in good shape.
For more details, our surety bond cost is an excellent resource on how your bond price is determined.
Can I get a bond with bad credit?
Even if your finances are not perfect, you’re very likely to be able to get bonded with us. Our Bad Credit Surety Bonds program is designed for applicants with low credit scores, tax liens, bankruptcies, and civil judgements. The only types of bonds that we can’t issue for bad credit applicants are contract bonds.
The premiums are in the range of 5%-15%. While your bonding cost will be slightly higher, you still get the best rates with us. We have close partnerships with a number of A-rated, T-listed surety companies, so we can select the best bonding option for your case.
How do I apply for my Indianapolis surety bond?
If you want to receive an exact bond quote, just complete your full application on our website and send us your paperwork. We will deliver it in no time.
For more details on the bonding process, consult our How to Get Bonded page. Still have questions about your application? Don’t hesitate to call us at (877) 514-5146.