Indemnity Agreements

[Hamburglar]

I've already filled out a 1 page indemnity agreement with my current bonding company and now they are asking me to fill out a 4 or 5 page indemnity agreement. Why do I have to do this twice?

[Admin]

Many bonding companies have a simple indemnity agreement for smaller bonds, often referred to as a short form agreement. For multiple or larger bonds, a surety will often require you to sign a larger agreement, often reffered to as a long form, or general indemnity agreement.

[bondman]

I've already filled out a 1 page indemnity agreement with my current bonding company and now they are asking me to fill out a 4 or 5 page indemnity agreement. Why do I have to do this twice?

As we often say 'the devil is in the detail'. Make sure you understand the consequenses of what you are signing

[Admin]

As we often say 'the devil is in the detail'. Make sure you understand the consequenses of what you are signing

Most certainly. You will notice indemnity agreements are always one sided to protect the interests of the bonding company. They all have the same general concept, in the event of a claim, you will hold the surety harmless against losses and associated legal fees. You will still want to read through any agreement you sign for other details, but keep in mind the surety will not modify the agreement upon request.

Unfortunately, it is a standard of the industry, and the only way out of signing is to provide 100% collateral.