Surety Bonds 101 - Indemnity and the Agreement

Indemnity is a written obligation expressed by the signature of the individual executing the Indemnity agreement on behalf of themselves and their Company or Companies.
- AKA
  - Indemnity Agreement (IA)
  - General Indemnity Agreement (GIA)
  - General Agreement of Indemnity (GAI)
Verbiage is centric to the surety in order to allow for collection efforts in the event of a paid out claim paired with failure of the indemnitor to indemnify and hold harmless the Surety Company.

Business/Corporate Indemnity
- Provides a collection avenue to the assets of the business/corporation
Individual Indemnity & Spousal Indemnity
- Provides a collection avenue to the assets of the individual indemnitor(s)
- Spousal indemnity required in order to allow access to their sole and separate assets, any assets that they may have converted to their assets from their spouse or the company
Waived Indemnity
- Rarely occurs, usually Individual Indemnity is waived on publically traded companies or on event where the bond is fully collateralized.
Implied Indemnity
- Occurs when the principal receives the benefit of the bond without signing an agreement. They benefit and therefore there is an implied offsetting agreement to hold the surety harmless.

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