As a Property and Casualty (P&C) insurance agent, you always need to be on the lookout for fresh ways to grow your revenue, retain clients, and stand out from the competition. In 2025, one of the most promising growth opportunities is surety bonds.
Surety bonds have historically played a crucial role in contractors’ regulatory compliance. However, their demand is growing quickly among small businesses. From freight brokers and car dealers to cannabis retailers and cleaning services, more business owners need surety bonds to get licensed, stay compliant, and secure work than ever before.
This trend presents a powerful opportunity for your P&C agency. By understanding the reasons behind the rising demand for surety bonds and partnering with the right provider, you can satisfy more clients and unlock new revenue streams. Keep reading to learn how to capitalize on this lucrative market with ease.
Thanks to regulatory shifts and industry-specific licensing requirements, the demand for surety bonds among small business owners is growing rapidly. Two notable drivers behind this growth include:
Many states have added surety bond requirements for professional licensure, particularly in industries prone to consumer risk or financial loss. Some of these industries include:
As these regulatory requirements evolve, more small business owners are seeking guidance about surety bonds, often turning to their P&C agent before exploring additional solutions.
The U.S. economy has seen sizable investments in infrastructure and construction in recent years, including over $1 trillion in federal funding from the Infrastructure Investment and Jobs Act (IIJA) and Inflation Reduction Act (IRA).
Meanwhile, entrepreneurship is also on the rise. According to the U.S. Census Bureau, over 5 million new business applications were filed in 2023 and 2024. Together, these trends bring increased demand for both commercial and contract surety bonds.
Do you currently refer clients to other companies for their surety bonding needs? Or worse, do you ignore surety bonds altogether? If so, you may be missing out on a valuable cross-selling opportunity.
Along with providing a steady stream of commissions, adding surety bonds to your portfolio can strengthen your client relationships. That’s because these in-demand products:
Read More: How Trust in a Surety Partner Impacts Business Growth
At United Casualty and Surety Insurance Company (UCS), we understand that venturing into the surety space may seem daunting at first. Fortunately, we’ve built our business around supporting yours. Here’s what makes our partnership stand out:
Unlike some surety providers, UCS never competes with P&C agents for clients. Instead, we operate on an agent-first model, enabling you to maintain full ownership of your relationships.
At UCS, we know that many of your small business clients operate under tight timelines. That’s why we prioritize fast service and quick turnarounds. Our responsive underwriting team is readily available to answer your questions, evaluate submissions, and get approvals moving fast.
UCS offers both commercial and contract surety solutions across a wide range of industries and risk profiles. This breadth allows us to write bonds for small to mid-sized contractors and new business owners, as well as unique cases that other providers may decline.
We’re licensed in all 50 states and listed in the U.S. Department of the Treasury’s T-list, which means we’re authorized to write federal bonds and participate in public projects. Thus, we can support your clients with whatever bonds they need, from small license bonds to complex performance and payment bonds.
Read More: 6 Essential Bonds To Support Your Contractor Clients' Business Growth
At UCS, we act as an extension of your team, helping you deliver bonding solutions with confidence. Our team offers hands-on support every step of the way, helping you:
Our underwriters possess deep expertise in both commercial and contract bonds. As a result, we can confidently meet the needs of both small business owners and contractors, structuring solutions that work for everyone involved. What’s more, our commitment to flexible underwriting means we look for ways to say “yes,” even in cases that don’t fit the mold.
Thanks to our efficient processes and easy-to-use portal, you can secure many commercial bonds instantly online. And for larger or more complex requests, our team is just a call or email away!
As surety bond demand grows across the U.S., the question is no longer if your clients will need bonding support—it’s who they’ll turn to when they do. By providing surety bonds in-house, you can strengthen your relationships and tap into the growth potential of this thriving market.
The best part? You can reap these benefits with ease by partnering with UCS. Thanks to our fast service, flexible underwriting, and non-competitive business model, we help agents like you offer surety solutions confidently and efficiently.
Interested in partnering with UCS? Discover how you can start offering surety solutions with our support today!
The Insight Partners. Surety Market Size is Anticipated to Grow at a CAGR of 6.6%, Reaching USD 31.85 billion by 2031.
FMCSA. Broker Registration.
https://www.fmcsa.dot.gov/registration/broker-registration
Department of Cannabis Control California. Form 8113: Commercial Cannabis Licensee Bond.
https://cannabis.ca.gov/2024/01/form-commercial-cannabis-licensee-bond/
Brookings. Four recent trends in US public infrastructure spending.
https://www.brookings.edu/articles/four-recent-trends-in-us-public-infrastructure-spending/
Finder. New business statistics: 2005 to May 2025.