Surety Trends to Watch Heading Into 2026

By Josh Restauri | Surety Underwriting Consultant

As we kick off 2026, the surety market continues to evolve in response to economic shifts, regulatory changes, and construction industry dynamics. For contractors, developers, and project owners, understanding these trends is key to maintaining bonding capacity and protecting business growth in 2026.

Here’s what we’re watching:

1. Bonding Capacity and Credit Trends

Contractors continue to face tighter underwriting as surety carriers focus on financial strength, risk history, and project mix. Maintaining strong financials, clear reporting, and having proactive communication with sureties will be essential for securing capacity in 2026.

2. Project Complexity and Risk Exposure

Large-scale infrastructure projects, renewable energy builds, and public-private partnerships introduce new risk considerations. Sureties are increasingly scrutinizing project schedules, subcontractor risk, and contract terms — making broker expertise, strong relations,  and transparency critical.

3. Ownership Transition

Every year, more owners consider what an exit could mean for them. Some pass the company on to the next generation; while others sell to Private Equity or become an ESOP. These decisions could drastically change the amount of capacity a surety is willing to offer.

4. Claims Environment and Reinsurance Losses

While the number of surety claims has remained relatively low, a few severe cases drove an increase in losses in 2025. Due to these losses, surety companies may become more conservative over the next twelve months, leading to more questions and higher underwriting standards. Having a strong surety broker relationship who possesses the knowledge and expertise is paramount.

5. Strategic Planning for 2026

The surety market rewards foresight. Contractors who strengthen their balance sheets, invest in best practices, and maintain strong relationships with their surety partners will enter 2026 with more bonding capacity, smoother approvals, and less exposure to unexpected delays or denials.

At Seubert, we help contractors navigate the evolving surety landscape.

From bonding strategy and capacity planning to risk mitigation, our team helps ensure you have the right coverage to grow your business confidently in 2026.