As a condition of issuing a bond, bonding companies all have an absolute requirement that the business and its owners sign an indemnity agreement. There are three elements to the Indemnity required by Bonding Companies, Business, Personal and Spousal. Here is why indemnity is required:

This is a question we hear all the time and is often a point of contention or confusion. Spousal indemnity, except in certain rare circumstances, is an absolute requirement to obtain bonding. It is fair to ask why. However, it is important to ask, why do bonding companies require indemnity in the first place?

I know what you’re thinking … “I’ve run my construction company for several years now and I’d like to expand into doing bonded work”.  Or … “I never really thought about pursuing bonded work but I was just offered a job that requires a bond”.  “Where do I begin?”

There are a myriad of bonds that are required of businesses, contractors and individuals in order to obtain licenses or permits from Government Agencies.  These bonds guarantee that the business or individual (Principal) will comply with the terms of the permit or the underlying statues governing the license.

Here’s what you need to know about the different types of Bonds for your Construction Company as well as some key concepts regarding contract bonds.

Thank you for enrolling in The Bond Agency’s entry level course in Surety Bonds. In 5 minutes, after reading this post, you will graduate with a grasp of all of the basic concepts of surety bonds including definitions for some complex terms, the role of the various parties and, more importantly what responsibilities you will be assuming when you obtain a bond.