Michigan Private Investigator Bond

 Michigan requires licensed private investigators and investigative agencies to post a $10,000 surety bond as part of the state’s licensing process. This bond guarantees ethical conduct and protects the public from losses due to negligence or misconduct. Below, we explain who needs this bond, how much it costs, how to get one, and how Lance Surety Bonds helps applicants with all credit types secure approval quickly and easily.

A Michigan private investigator bond is a state-required surety bond that ensures professional investigators and investigative agencies operate with integrity and in compliance with Michigan law. It serves as a financial safeguard for clients and the public in case an investigator acts dishonestly or unlawfully while performing professional duties.

Under Act 285 of 1965, specifically MCL Section 338.829, both individual investigators and investigative agencies must post a $10,000 bond when applying for a license. The bond guarantees the “faithful and honest conduct” of the licensee as required by law.

If a licensed investigator commits fraud, breaches confidentiality, or causes damages through professional misconduct, a claim can be filed against the bond. The surety compensates the affected party up to the bond amount, and the investigator must reimburse the surety for any payout.

Licensing and bond details are regulated by the Michigan LARA (Department of Licensing and Regulatory Affairs). The bond form used for filing is available through this official form PDF.

The license and bond term each run for three years. A surety wishing to cancel must provide 30 days’ written notice to LARA before the cancellation becomes effective.

The required bond amount is $10,000, but the premium—the amount you actually pay—is only a small fraction of that total. In most cases, the bond is valid for three years and costs approximately $250–$500 for the full term.

The premium is based on underwriting factors like credit history, professional experience, and financial stability. Rates generally fall between 1% and 5% of the bond amount. Here’s a simplified cost breakdown:

Investigators with strong credit and a clean record often qualify for the lowest rates. However, Lance Surety Bonds offers options for all applicants through its network of A-rated surety carriers.

To estimate your premium, visit Lance’s Surety Bond Cost resource, which provides detailed explanations of pricing variables and sample rate ranges.

Getting a Michigan private investigator bond is a straightforward process. Whether you’re applying as an individual investigator or an agency, the steps below outline exactly what’s required:

1. Determine your licensing eligibility – Confirm that you meet state licensing standards under LARA’s requirements. Applicants must meet LARA’s eligibility standards, including at least three years of investigative or law-enforcement experience within the last five years, good moral character verified by references, and a clear criminal background.
    
2. Submit a bond application – Complete an online application through Lance Surety Bonds. The form collects basic business and personal information for underwriting review.
    
3. Underwriting and approval – The surety reviews your credit, financial stability, and experience. Approval is typically quick, and rates depend on your risk profile.
    
4. File the bond with LARA – Once approved, the bond form must be attached to your investigator license application (using the official form PDF). LARA’s Corporations, Securities & Commercial Licensing Bureau (CSCL) manages this process.

If you’d like a more detailed walkthrough, check out this clear step-by-step guide on how to get bonded.

After submission, the processing timeline for licensing and bond approval usually takes several weeks, depending on state workload. Applicants should plan ahead to ensure no gap in coverage.

Yes, even if you have bad credit, you can still qualify for a Michigan private investigator bond through Lance Surety Bonds. The company offers specialized underwriting programs designed for applicants with less-than-perfect financial histories.

While applicants with low credit may pay a higher premium, typically 4% to 7% of the bond amount, approval is still possible. Underwriters evaluate several factors beyond credit, including:

• Professional experience or prior licensing history
• Financial stability or business income
• Availability of a co-signer or indemnitor

Providing documentation like tax returns or bank statements can help improve your approval chances. Over time, maintaining an active bond and improving your credit can lower renewal costs.

Lance Surety is known for transparent pricing and flexible terms, ensuring that even applicants with credit challenges can meet Michigan LARA’s bonding requirement.

What happens if a wrongful claim is made?

If someone files a claim against your bond, the surety will investigate to determine validity. If the claim is valid, the surety compensates the claimant up to $10,000. You’re then required to reimburse the surety for any paid amount.

How often must the bond be renewed?

The private investigator license and bond both have a three-year term, running concurrently. Renewal is required every three years. Lance Surety Bonds provides reminders and renewal assistance before expiration. 

To start the process or renew your existing coverage, visit the private investigator bond page for details.

Can I cancel the bond mid-term or change surety?

Yes, but cancellation requires written notice to LARA from the surety before the bond is officially terminated. If you plan to switch providers, ensure your new bond is approved and filed before cancellation to prevent a lapse in license coverage.

Lance Surety Bonds. (2025). Michigan Private Investigator or Agency Bond. Retrieved October 15, 2025, from
https://www.lancesuretybonds.com/bonds-by-state/michigan/private-investigator-or-agency-bond

Lance Surety Bonds. (2025). Surety Bond Cost. Retrieved October 15, 2025, from
https://www.lancesuretybonds.com/learn/surety-bond-cost

Lance Surety Bonds. (2025). How to Get Bonded. Retrieved October 15, 2025, from
https://www.lancesuretybonds.com/learn/how-to-get-bonded

Lance Surety Bonds. (2025). Private Investigator Bond. Retrieved October 15, 2025, from
https://www.lancesuretybonds.com/license-bonds/detective-bond-private-investigator-bond

Lance Surety Bonds. (2025). Surety Bond Quote – Online Application. Retrieved October 15, 2025, from
https://www.lancesuretybonds.com/surety-bond-quote

Michigan Department of Licensing and Regulatory Affairs (LARA). (2025). Private Detective 

Licensing Requirements. Retrieved October 15, 2025, from
https://www.michigan.gov/lara/bureau-list/cscl/licensing/prof/detectives/applicant/licensing-requirements

Michigan Department of Licensing and Regulatory Affairs (LARA). (2025). Private Investigator License Application Form. Retrieved October 15, 2025, from
https://www.michigan.gov/-/media/Project/Websites/lara/cscl/Folder1/lpi010.pdf?rev=4d18b6c1bb9f493ab802ce48736cc354

Michigan Legislature. (1965). Act 285 of 1965, MCL 338.829. Retrieved October 15, 2025, from
https://www.legislature.mi.gov/Laws/MCL?objectName=mcl-338-829