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An indemnity agreement provides protection against loss, commonly seen in high-risk activities like skydiving and bungee jumping. It safeguards businesses from liability. In the context of surety, an indemnity agreement is a document between a principal and a surety, where the principal agrees to indemnify the surety for any claims. Indemnification involves reimbursing the surety, such as repaying $20,000 if a claim is paid out. Typically, all business owners must sign an indemnity agreement, though sometimes only the best applicants are required to sign, and it may also necessitate spousal indemnity or third-party witness signatures.
