How Commercial Bonds Help Agencies Keep — and Grow — Clients
Commercial bonds are often viewed by independent agents as complicated, time-consuming or outside the scope of traditional insurance offerings. However, overlooking bonds can mean leaving easy revenue and stronger client relationships on the table.
In the July 2025 issue of Independent Agent magazine, Justin Vinzant, executive commercial underwriter with ORS, outlined two ways that commercial bonds should be considered “low-hanging fruit” for agencies looking to grow and stabilize their books of business.
Automatic, Recurring Revenue
According to Vinzant, most commercial bonds are quick and easy to underwrite, with many issued the same day through immediate-issue programs. Once in place, bonds typically renew automatically each year, without the need for audits, updated applications or additional underwriting.
Agents also can often take advantage of direct billing arrangements, where the surety manages billing and collections while the agent continues to earn renewal commissions. Over time, this creates a steady, predictable income stream with minimal ongoing effort, freeing agents to focus on new business development or expanding other lines.
Stronger Retention and Cross-Selling Opportunities
Offering commercial bonds positions an agency as a true full-service provider. Contractors, for example, often need license bonds to meet state or local requirements. If an agency can’t provide that bond, the client may be forced to look elsewhere and potentially move all their insurance business in the process.
Commercial bonds also open the door to additional coverage conversations. As Vinzant points out, a client purchasing a license bond may also benefit from optional products such as employee dishonesty bonds, creating opportunities to deepen relationships while delivering more comprehensive protection.
A Simple Way to Add Value
Commercial bonds are not just an administrative add-on. When integrated thoughtfully, they can enhance client loyalty, support cross-selling and deliver recurring revenue with relatively little effort.
For independent agents seeking sustainable growth, commercial bonds may be one of the simplest ways to strengthen their value proposition without reinventing their business model.
