Indemnity Bond
/ɪnˈdɛm.nɪ.ti bɒnd/
Definitions
- (n.) A written agreement in which one party promises to compensate another for loss or damage incurred, often used to secure indemnification against claims or liabilities.
The contractor provided an indemnity bond to protect the client against any financial loss arising from project delays.
Forms
- indemnity bond
- indemnity bonds
Related terms
See also
Commentary
An indemnity bond specifically promises compensation against loss, differing from surety bonds which involve a third party guaranteeing performance or payment.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.