Tue, Jun 29, 2021
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What is an indemnity bond and do I need to ask for one?
Image by Dimitris Vetsikas from Pixabay
What is an indemnity bond?
An indemnity bond (also called a surety bond or fidelity bond) is a form of insurance purchased by one party to a contract as a means of compensating a second party to the contract, should the first party fail to deliver on its promises or perform its obligations. The bond is guaranteed by a third party (usually a bank) which agrees to pay the second party if the first party defaults.