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indemnity bond

An indemnity bond is a bond indemnifying an obligee against loss that arises as a result of a failure on the part of a principal to perform as required.

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indemnity bond

An indemnity bond is a bond indemnifying an obligee against loss that arises as a result of a failure on the part of a principal to perform as required.

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For example, a lease bond guarantees that a tenant will make their rental payments, and a construction performance bond guarantees the contractor will complete the construction project in accordance with the construction contract.

Synonyms

performance bond

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