Surety bonds are essential instruments in the world of financial security, providing assurance and trust in various transactions. But who sells these crucial bonds? 

Let’s explore how individuals and businesses can acquire surety bonds, emphasizing the role of surety bond agencies and the promising opportunity for insurance agents to tap into this market.

Who sells surety bonds?

Surety bond agencies specialize in the sale and issuance of surety bonds. These agencies are experts in assessing risks, determining bond requirements, and facilitating the bonding process for their clients. 

With their extensive knowledge and experience in the industry, surety bond agencies play a pivotal role in helping individuals and businesses secure the appropriate bonds for their needs.

Helpful Resources for Finding Reputable Surety Bond Agencies

Who should start selling surety bonds?

Two words: insurance agents.

While surety bond agencies are the primary providers of surety bonds, insurance agents are uniquely positioned to tap into this market. 

Here’s why.

Why Insurance Agents Should Sell Surety Bonds

Insurance agents possess several key advantages that make them ideal candidates for selling surety bonds:

  • Existing client relationships: Insurance agents have built trust and rapport with their clients over time, making it easier to introduce new products like surety bonds.
  • Understanding risk management: Insurance agents are well-versed in assessing risks and offering solutions to mitigate them, aligning closely with the principles underlying surety bonds.
  • Complementary products: Surety bonds complement many insurance products, offering clients comprehensive coverage and peace of mind in various aspects of their business operations.

Think about it. If you’re an established insurance agent, you have a client base already. You’ve already done the hard work of building trust with people. Leverage your expertise and client base to cross-sell products your clients already need. This lucrative opportunity can expand your service offerings and enhance client satisfaction. Easy cross-selling opportunities

Reasons insurance agents should also sell surety bonds

Read more about the benefits of selling surety in our recent article: “Why Insurance Agents Should Sell Surety.”

Selling Surety Bonds vs. Selling Insurance

While surety bonds and insurance provide financial protection, they serve distinct purposes. Here’s a brief overview of how selling surety bonds differs from selling insurance – and the similarities between the two.


Surety Bonds


PurposeEnsure performance and compliance in contractual agreements, guaranteeing that parties fulfill their obligationsOffers protection against unforeseen events or losses, providing financial compensation in the event of a covered incident
Risk TransferProvide a guarantee of performance, with the surety company backing the principal’s obligationsTransfers risk from the policyholder to the insurance company, which assumes liability for potential losses
Premium StructureA percentage of the bond amount, based on the risk associated with the specific obligationBased on the likelihood of a covered event occurring and the potential magnitude of losses



Surety Bonds & Insurance

Risk AssessmentBoth involve assessing risks in different contexts. Insurance agents evaluate risks to determine appropriate coverage levels and premiums. Surety bond underwriters assess the risk of non-performance by the bonded party.
Financial ProtectionBoth insurance and surety bonds provide financial protection to policyholders or obligees. While insurance compensates for covered losses, surety bonds ensure compensation if the bonded party fails to fulfill their contractual obligations.
Client RelationshipsSelling bonds and insurance requires building and maintaining strong client relationships. Insurance agents and surety bond professionals focus on understanding client needs, providing personalized solutions, and offering ongoing support.


By leveraging your existing expertise and client relationships, you can expand your service offerings and meet your clients’ diverse needs in risk management and financial protection. 

See our previous article, “Bond vs. Insurance,” for a deeper dive into how these two types of financial protection differ (including a downloadable infographic).


ZipBonds can help you sell surety bonds with ease.

ZipBonds is a full-service surety bond agency that lives and breathes surety. We can help your agency save time, remove uncertainty, and grow your book of business. Our team provides everything you need to sell surety bonds quickly. Visit ZipBonds for Agents or call (888) 435-4191 to get started!

ZipBonds for Agents