Surety bonds
Indemnity agreement
The contract a bond principal signs agreeing to repay the surety for any claim it pays. It is what makes a bond a guarantee, not coverage.
An indemnity agreement is the contract in which the principal agrees to repay the surety for any valid claim the surety pays on the bond. It is what makes the principal, not the surety, the ultimate source of funds.
Signing it is routine in bonding, but it is a real obligation that can reach owners personally. Understanding its scope before signing is part of taking on a bonded license responsibly.
Related terms
Where this comes up
Indemnity agreement is one piece of getting and keeping a business licensed. We handle the filings, bonds, and renewals that surround it across every state where you operate.