Indemnity Bond Meaning
An indemnity bond is a legal document that gives you the right to collect compensation from the principal for a claimed situation. Concerning the agreement, the company is mandated to pay a premium. For this, the surety company is supposed to pay a premium. The bonded contractor earlier is expected to settle this premium with the surety company; otherwise, the company can sue the contractor.
Having a good understanding of the terms of an indemnity bond is very important. Lack of awareness may lead to consequences. These may, in turn, lead to damaging the firm’s reputation if the company disagrees with bearing the costs for the claim. In addition, this stance may lead a company to be framed as incompetent and unprofessional. Non-payment of claims may lead to bankruptcy and legal action. Understanding every aspect of indemnity bonds in Hindi may be overwhelming. Make sure you follow this article to get detailed knowledge of indemnity bonds.