indemnity bonds

An indemnity bond is a legal agreement in which one party (the indemnitor) promises to compensate another party (the indemnitee) for any losses or damages that may arise from a specific situation. Essentially, it acts as a safety net, ensuring that if the indemnitee suffers a financial loss due to actions covered by the bond, the indemnitor will cover those costs. These bonds are often used in construction, real estate, or financial transactions to protect against potential risks, ensuring that all parties involved are safeguarded from unforeseen events.