You go to renew your $10,000 Surety Bond. Last year it was $100. This year it’s $180. You haven’t had a single claim. Why is the price spiking?
Key Takeaways
- Inflation of “Petty” Theft: The definition of “petty” theft has risen. Claims that used to be $100 are now $500 due to inflation of goods.
- AI Fraud Detection: Bonding companies use AI to detect “frequent flier” claimants (clients who sue everyone). While this stops fraud, the tech cost is passed to you.
- Rise in Gig Work: The explosion of unvetted gig-cleaners has led to a spike in theft claims across the industry, hardening the market for everyone.
- Credit Scores: Surety bonds are credit-based. If your personal credit score dipped in the 2025 recession, your bond rate goes up.
The “Why” (The Trap): It’s Not Insurance
Remember: A Surety Bond is credit, not insurance.
The bonding company pays the client, then comes after you to get paid back.
Because economic times are tough (2026 inflation), more cleaners are defaulting on paying the bonding company back. Therefore, the bonding companies are raising premiums to cover their risk of your insolvency.
The Investigation: Bond Market Trends
I spoke to a surety underwriter about the 2026 hikes.
1. Claims Frequency
- Trend: Theft claims (jewelry, cash, meds) are up 25% since 2024.
- Impact: Higher base rates for the “Janitorial Services” class code.
2. The “Conviction” Hurdle
- Reality: Bonds still require a conviction to pay out easily.
- Alternative: “Third Party Crime Insurance” (part of a BOP) is becoming more popular because it doesn’t always require a conviction, but it costs more.
3. Credit Checks
- My Analysis: Run your own credit. If you are below 650, you are considered “High Risk” for a bond.
Comparison Table: Theft Coverage Costs
| Product | 2024 Price | 2026 Price | Pays Out When? |
| Janitorial Bond ($10k) | $100 | 150−150− 200 | Conviction |
| Crime Insurance | $250 | $350 | Proof of Loss |
| Employee Dishonesty | $150 | $225 | Video/Confession |
[IMAGE: Graph showing the rise in Surety Bond premiums vs. Inflation Rate]
Step-by-Step Action Plan
- Shop Around: Bonds are commodities. Check SuretyBonds.com, Lance Surety, and your local broker.
- Check Your Credit: Fix errors on your credit report before applying.
- Consider Crime Insurance: Instead of a bond (which offers you no protection), spend the extra $100 for “Third Party Crime Coverage” which actually defends you.
- Marketing: If you pay the higher rate, make sure you blast “BONDED & INSURED” on every piece of marketing material. Make it pay for itself.
FAQ Section
Do I absolutely need a bond?
Legally, usually no. Commercially, yes. Clients won’t hire you without it.
Does the bond cover me (the owner)?
No. Bonds cover employees. You cannot bond yourself against stealing from yourself.
Can I get a bond with a criminal record?
It is very difficult. You will pay a high premium or be denied.