ProSource Solutions / Agency briefing
Surety Bonds and Indemnity
Understand the bond obligation, the role of the obligee and questions about reimbursement, signatures and collateral in an indemnity agreement.
What to understand
A surety bond backs an obligation to an obligee. An indemnity agreement may require the principal and other indemnitors to reimburse the surety for payments and expenses. Buying a bond is not the same as transferring risk under a liability policy.
Your next step
Read the bond form and proposed indemnity agreement. Ask who must sign, whether collateral is required and what obligations continue after the project ends.
Read the primary source
Educational information only. Follow the linked source for current requirements. Insurer references do not establish a carrier appointment.