Indiana Professional Employer Organization Surety Bond

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$100,000 bond penalty (increases in the event of negative working capital)

In order to provide professional job placement services in Indiana an applicant must register with the Commissioner of Insurance and provide an Indiana Professional Employer Organization surety bond or attest to the satisfaction of the Commissioner that the registrant possess appropriate levels of working capital. The state statute IC 27-16-2-13 defines a "Professional employer organization" or "PEO" as a person engaged in the business of providing professional employer services. Those services are further defined in Section 4-1 as a staff leasing company, registered staff leasing company, employee leasing company, or administrative employer.

The professional employer organization surety bond is a new requirement which became effective as of January 1st, 2014. IC 27-16-6-1 defines the financial requirements of the PEO. Pursuant to Sec. 1. (a) A PEO or PEO group shall do one (1) of the following: (1) Maintain positive working capital, as reflected in the financial statement submitted to the department by the PEO or PEO group under IC 27-16-4., or, . . . (2) provide a surety bond with a minimum aggregate value in an amount that is at least sufficient to eliminate the PEO's or PEO group's negative working capital PLUS one hundred thousand dollars ($100,000).

The Department of Insurance offers three levels of registration for an Indiana professional employer organization. Full registration is for a PEO that is domiciled in Indiana or is located in a state whose licensure or registration requirements are not substantially similar or more restrictive pursuant to IC 27-16-4-6. Limited registration is reserved for a PEO that is domiciled, licensed or registered in a state other than Indiana, but said state has registration requirements that are substantially similar or more restrictive pursuant to IC 27-16-4-6. Certified registration is only issued to such PEOs that are approved by an Independent National Organization. Employer Services Assurance Corporation (ESAC) is an approved Independent National Organization for certifying PEO applicants for registration in Indiana. Presently, the regulating statute does not seem offer a waiver of the Indiana professional employer organization surety bond or working capital requirements for any of the three levels of registration. Questions about the registration process and surety bonding / working capital requirements can be directed the appropriate department of the DoI, as follows:

Indiana Department of Insurance
Indiana Professional Employer Organization Surety Bonds
311 W. Washington Street, Suite 300
Indianapolis, IN 46204

The division website also offers a specific contact for further information or assistance: Annette Gunter (317) 232-2428 or by email

Indiana surety leader, Surety One, Inc. is a specialist in the bonding needs of the temporary employment and professional employer services industry. We offer both surety and fidelity bonds needed by these professionals in ALL fifty states, Puerto Rico and the U.S. Virgin Islands. Visit us at, call (787) 333-0222 or (800) 373-2804, or email us at for a Indiana PEO surety bond application or information on ANY surety or fidelity bond need.

Surety bond application review and quoting are free of charge. There is no obligation to purchase.

What We Need From You

Additional Attachments

  • If bond is greater than $50,000, provide a current business financial statement.

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