What a contractor license bond is
Some states, and many cities and counties, make contractors post a bond to get or renew a license. It protects customers, workers and the public if the contractor breaks the licensing laws, for example by abandoning a job or not paying workers. The contractor repays the surety for any claim it pays.
In Indiana
Indiana has no statewide general contractor license or license bond. Cities and counties that license contractors set their own bonds; for example, Indianapolis requires a $10,000 surety bond for a general contractor license, payable to the Consolidated City of Indianapolis and/or an unknown third party.
- Indianapolis general contractor licenses expire December 31 of even-numbered years; continuous bonds are not accepted.
You need this bond if you're
- A contractor applying for a new license
- A contractor renewing or reactivating a license
- A business changing its entity type or qualifier
- A contractor starting work in a city or county that requires its own bond
What the surety looks at
Basic business and owner details. Most license bonds need a credit check but no financial statements.