Who Needs an Indiana Itinerant Merchant Bond?

An Indiana Itinerant Merchant Bond is typically required for:

• Vendors selling goods or services temporarily in a location

• Merchants operating at fairs, festivals, or temporary markets

• Businesses setting up short-term retail locations (e.g., pop-up shops)

• Door-to-door sales businesses

Most cities and counties in Indiana require this bond for merchants who do not have a permanent, fixed business location in the area where they are selling. This bond helps protect consumers and the local government from potential fraud, misrepresentation, or failure to pay required fees.

How Does the Indiana Itinerant Merchant Bond Work?

This bond provides financial protection by ensuring that merchants operate in good faith. Here’s how it works:

1. You obtain the bond as a requirement for your Itinerant Merchant License.

2. The bond serves as a financial guarantee that you will comply with all applicable laws and regulations.

3. If a claim is filed, such as for fraud, failure to deliver goods, or violating local ordinances, the surety company may compensate the affected party up to the bond amount. However, you are ultimately responsible for reimbursing any claims paid by the surety.

Cost of an Indiana Itinerant Merchant Bond

The cost of this bond depends on:

• The required bond amount (varies by city or county)

• Your credit score and financial history

• The surety company’s underwriting process

Typically, well-qualified applicants pay 1% to 5% of the total bond amount. Merchants with strong credit and financial stability will receive lower rates, while those with credit challenges may pay slightly more.

How to Obtain an Indiana Itinerant Merchant Bond

The process is simple and quick:

1. Check local requirements – Contact the city or county where you plan to operate to determine the required bond amount.

2. Request a quote – Provide details about your business and financial background to receive pricing.

3. Submit your application – Complete the necessary paperwork and provide supporting documentation if required.

4. Receive your bond – Once approved, you’ll get your bond to file with the local licensing authority.