What is an indemnity agreement with a surety bond?

An indemnity agreement is a legally binding document you sign before you can have your surety bond issued.

At a high level this indemnity agreement is you taking full financial responsibility for the surety bond agreement with the surety issuing your bond.

It's for the protection of the surety company.

Here are some of the common agreements you're legally making when you complete the indemnity agreement:

• You agree to pay the premium based on the bond term for your bond
• You're responsible for paying back the surety for any successful claim, not only the claim amount but any fees associated with the claim process
• The surety has the right to access your credit report or business financials
• You give all legal power to the surety in the even of a claim
• The surety has the right to determine whether they want to continue cover your bond, bond term to bond term
• You don't have the right to cancel the bond once it's active, but the surety can cancel the bond by providing a cancellation notice

As you can see, this agreement is for the protection of the surety, mainly in the event of a successful claim against your bond.

You have to remember what is a surety bond?

Remember, What is a Surety Bond?

It's a guarantee.

The surety company issuing you the bond is guaranteeing payment in the event of a legitimate claim. They must pay the claim.

And this is why they want their protections that you will pay them back and honor the agreement of the surety bond.

Most surety bonds have an indemnity agreement of some sort. If the bond is a smaller bond amount or in a market where fraud is less likely, you may not have to complete an indemnity agreement.

How Do You Get Your Surety Bond?

If you're trying to get your surety bond issued fast, we can help you.

Click here and complete a online quote form. Tell us about the bond you need and the amount you're required to get. If you don't know, we'll do our best to help you find the correct bond.

We'll get pricing either immediately or within a few hours if we have to price shop for you.

Once you're ready to purchase, we can have your surety bond issued in under one business day, after you sign your bond's indemnity agreement.