Contractor Insurance Requirements in Indiana

Indiana has no statewide general-contractor license and no universal residential GL minimum. Most insurance requirements come from city or county contractor registrations. Indianapolis, Lafayette, South Bend, Fort Wayne and other jurisdictions can require COIs, often $500,000 or $1,000,000 depending on classification. The citation trail is Ind. Code § 25-28.5-1-1; Ind. Code § 22-3-2-2. Treat the quoted number, when one exists, as a licensing floor rather than a safe project limit. A homeowner should request a current Certificate of Insurance showing the exact legal name, policy number, effective dates, occurrence and aggregate limits, products/completed operations, and any additional-insured wording required by the contract or permit office. Where Indiana does not publish a statewide GL minimum, ProFix describes market ranges only as verification guidance, not as law. Roof, structural, excavation, mold, fire, solar and multi-trade projects should usually be reviewed for umbrella or excess liability because standard GL can contain residential, roofing, pollution, subsidence or subcontractor exclusions.

Workers' compensation is required for Indiana employers with employees. Sole proprietors, partners and LLC members may have election or exemption issues, but a local license desk can still demand proof of WC or a state exemption form before issuing a contractor registration. Cite Ind. Code §§ 22-3-2-2, 22-3-6-1. Coverage is purchased through private carriers, assigned risk or approved self-insurance. A certificate should not be confused with a WCE exemption filing. For residential hiring, the key question is not only whether the contractor has a policy, but whether the people entering the home are covered by that policy. Ask whether subcontractors are employees, independent businesses with their own WC, or excluded owners. If the contractor says it is exempt, request the state exemption form or written statutory basis and keep it with the contract file. A GL policy does not pay statutory wage-loss and medical benefits for an injured worker, and an occupational accident policy is not always a substitute for workers' compensation.

Bonding is also mostly local. Indianapolis and other cities commonly require contractor bonds for general, electrical, HVAC, wrecking or right-of-way work. Indiana's state plumbing license does not eliminate local bond or insurance requirements. The legal anchor is Ind. Code § 36-7-2-9; local contractor ordinances. A license bond is not the same thing as liability insurance: it is a surety promise that may reimburse a claimant only after a covered violation, and the surety normally seeks reimbursement from the contractor. It also is not always a performance bond guaranteeing completion of one homeowner's project. For residential work, ask who the obligee is, the bond amount, the effective dates, cancellation notice, and whether the bond is tied to the state license, a city registration, a right-of-way permit or a specific contract. For public or large commercial work, separate bid, performance and payment bonds can be required even when no residential license bond exists.

Residential GC compliance starts with the local building department, not a state GC board. Commercial projects usually require more formal registration, plan review, fire approvals and higher insurance limits, especially where right-of-way or public property is affected. For insurance review, residential work should be tested against the homeowner contract, permit office, lender, HOA or condo requirements, and the license classification. Commercial work usually scales faster because leases, architects, public owners and general contractors often require additional insured status, waiver of subrogation, primary-and-noncontributory wording, higher auto limits and umbrella coverage. A contractor who is legal for a small repair may still be underinsured for a structural addition, roof replacement, fire restoration or job involving subcontractors.

Plumbing is the clearest statewide contractor trade credential, while electrical and HVAC are often local. Elevator, boiler, asbestos and lead-safe work have separate state or federal rules. Mold remediation is insurance-sensitive because many GL policies exclude microbial damage. Federal overlays still matter in every state: renovation of pre-1978 painted surfaces can require EPA Renovation, Repair and Painting compliance under 40 C.F.R. Part 745, and asbestos disturbance can trigger OSHA construction asbestos rules at 29 C.F.R. § 1926.1101 plus state notification or licensing. Specialty insurance should match the hazard. Ask about professional liability for design-build advice, pollution or microbial coverage for mold and sewage, rigging/crane coverage for HVAC rooftop units, and hot-work controls for welding or torch-down roofing. A general liability COI with a low premium can be misleading if the trade that caused the loss is excluded.

Call the permit jurisdiction first, then verify Indiana PLA plumbing or other state credentials where relevant. Require GL and WC certificates or a valid exemption form. The Indiana Department of Insurance can confirm the insurer and producer named on the certificate. Use three documents together: the state or local license record, the COI, and the bond or workers' compensation proof. The license board URL for Indiana is https://www.in.gov/pla/, and the insurance regulator URL is https://www.in.gov/idoi/. Match the business name, DBA, address and license number across all documents; mismatches are the fastest way to spot borrowed insurance or an unlicensed subcontractor. Call the producer listed on the COI, not a phone number supplied only in a text message. For larger residential jobs, require updated certificates before each draw and before final payment. This is an insurance-compliance checklist, not legal advice, and the local permit office can impose stricter conditions than the statewide baseline.