Surety Bond Indemnity Agreements

What is a Surety Bond Indemnity Agreement?

In surety bonding, an indemnification agreement is a contract where the principal (bondholder) agrees to reimburse the surety for any losses it incurs from claims against the bond. This is meant to protect the surety from risk. These agreements are

What is the need for a Surety Bond Indemnity Agreement in Construction Contracts?

In construction contracts, a Surety Bond Indemnity Agreement is crucial for protecting the surety company from financial loss if a contractor (obligee) fails to fulfill their legal obligations. This agreement ensures that the contractor is required to reimburse the surety for any investments made to the project owner.

Why Choose Babcock Scott & Babcock for your Surety Defense and Indemnification:

It is often the case that the surety will authorize our lawyers to undertake the surety’s defense of a payment bond or performance bond claim. Our attorneys have gained the confidence of national surety bond providers, including CNA, Fireman’s Fund Insurance Company, Liberty Mutual Insurance Company, Zurich North America, Old Republic Surety Company, Westchester Fire Insurance Company, Travelers, and many others.

Our attorneys have been and continue to be active members of the Surety Association of Utah, having served as officers and committee members. A number of our attorneys are also active members of the Fidelity and Surety Law Committee of the American Bar Association.

We work closely with our contractor client’s bond agents, representatives and underwriters to help our clients qualify for a line of bonding credit and increase that line of bonding as their capacity grows.