How do you purchase an indemnity bond?


Editorial team Published on

You can apply for an indemnity bond through specialized providers like SuretyBonds.com or JW Surety Bonds by submitting an application and required project or personal details.

An indemnity bond is a type of surety bond that protects an obligee (the protected party) from financial loss if the principal (you) fails to meet a legal or contractual obligation.

Steps to Get an Indemnity Bond

  • Determine the required amount: Check with the entity requesting the bond (such as a state agency, DMV, court, or bank) to find out the exact coverage amount needed.
  • Choose a surety provider: Select a licensed surety bond agency or insurance provider authorized to issue bonds in your state.
  • Submit an application: Fill out the bond application with details about your business, the specific transaction, and personal identification.
  • Undergo a credit and background check: The surety company will review your credit history, financial statements, and background to assess your risk level.
  • Pay the premium: Once approved, pay the non-refundable premium, which typically costs between 1% and 10% of the total bond amount depending on your creditworthiness.
  • Sign and file: Sign the indemnity agreement and submit the physical or digital bond to the requesting party.