BlogELGSurety LawThe General Agreement Of Indemnity Collateral Security Provision: If You Try Sometimes, You Might Find, You Get What You Need
Surety bonds are a primary, if not mandatory, component of every-day construction projects. While commercial insurers on a construction project expect losses and adjust insurance rates to cover such losses depending on many factors, sureties do not expect to pay out-of-pocket for bond losses and, instead, require principals and indemnitors to exonerate, indemnify, and often defend sureties in the event of a loss or anticipated loss. As such, a general agreement of indemnity in favor of the surety usually goes hand-in-hand with the issuance of construction surety bonds. [Read More...]