indemnity bond

An indemnity bond is a legal agreement where one party (the indemnifier) promises to compensate or protect another party (the indemnitee) against potential losses or damages resulting from a specific act or obligation. It serves as a guarantee that if something goes wrong, the indemnifier will cover the costs, ensuring the indemnitee is financially safeguarded. This bond is often used in construction projects, business transactions, or contractual agreements to provide assurance and reduce risk for the involved parties.