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Surety bonds are assumed to have zero risk for the surety company issuing them. The bond outlines the agreement between the principal, surety company, and obligee. It does not include language on the principal reimbursing the surety. An indemnity agreement is crucial for transferring risk from the principal to the surety company in case of a claim against the bond. The indemnity agreement is a two-party contract where the indemnitor assumes risk, and the surety company is absolved of liability.