Last Updated: January 2026
This Indemnity and Disclosure Agreement (“Agreement”) is made between Shield Liability, LLC (the “Agency,” “Shield,” “we,” “us,” or “our”) and the undersigned customer (the “Customer”), who may be an insurance policyholder or a surety bond principal. By clicking “Accept” at checkout or by signing below, the Customer agrees to all terms of this Agreement, which is binding and enforceable as if physically signed. This Agreement is intended to protect the Agency and its surety and insurance partners (including Old Republic Surety Company and other carriers) and to comply with California law.
The Customer agrees to indemnify and hold harmless the Agency, any insurance carrier, and any surety company (collectively, “Indemnified Parties”) from any and all losses, liabilities, claims, damages, costs, and expenses (including reasonable attorney’s fees) arising out of or related to any insurance policy or surety bond issued on the Customer’s behalf. This broad indemnity means that if an Indemnified Party incurs any loss or expense because of a claim, lawsuit, or payment made under a bond or policy issued for the Customer, the Customer must reimburse and make the Indemnified Parties whole for all such amounts. The Customer’s obligation includes repayment of claims paid, settlements, judgments, damages, penalties, investigative costs, attorney’s fees, and any other related costs.
The Indemnified Parties’ Rights: The Customer acknowledges that the surety or insurer has certain important rights to protect itself. The surety alone has the right to decide whether to pay, settle, or defend any claim made on a bond, and the Customer agrees that such decisions by the surety are binding on the Customer. The Customer waives any right to dispute a surety’s good-faith settlement or payment of a claim, and agrees that the indemnity obligation extends to all such payments or settlements. The surety or Agency may also enforce the Customer’s obligations under this Agreement by legal action if the Customer fails to perform (for example, failing to provide required collateral or information). In any suit or demand under this Agreement, an itemized statement of payments made by an Indemnified Party for any loss or claim shall be prima facie evidence of the extent of the Customer’s liability to the Indemnified Parties. This indemnity is continuous and applies to the initial bond or policy and any renewals, extensions, substitutions, or replacements thereof, and to any future bonds or policies issued through the Agency at the Customer’s request.
Collateral Demand: The Customer agrees that upon demand by the Agency or any surety, the Customer will provide collateral security (such as cash or a letter of credit) in an amount sufficient to cover any actual or anticipated claim or loss on a bond. This collateral may be demanded at any time the surety deems itself at risk of loss, including upon a claim or notice of default. The Customer must furnish the requested collateral within the time frame specified by the demand (immediately or within the number of days stated in the demand). The surety may hold the collateral until it receives evidence satisfactory to the surety that it has been fully released from the bond and all related liabilities (i.e. until all claims, losses, and expenses are resolved and the bond is exonerated). If the Customer fails to deposit the demanded collateral, the surety has the right to bring legal action to compel such deposit, and to exercise any other remedies available.
Use of Collateral: Any collateral the Customer deposits may be used by the surety to pay or settle any claims or losses on the bond. After the bond is discharged and all obligations extinguished, any remaining collateral will be returned to the Customer, less any amounts applied to cover losses or expenses.
Other Surety Rights: In the event of a claim or default, the Customer agrees that the surety is entitled to exercise all remedies typically available to sureties. This includes, without limitation: the right to take over the defense or handling of any claim, the right (for contract bonds) to withhold or intercept contract funds due to the Customer or to require their retention (if applicable), and the right to be subrogated to the Customer’s rights against any third parties or indemnitors. The surety may also inspect the Customer’s books and records related to the bonded obligation at any reasonable time. The Customer shall cooperate fully with any surety investigation or claim handling, and failure to cooperate shall be a breach of this Agreement.
The Customer hereby authorizes the Agency and any participating insurance company or surety to obtain consumer credit reports and background information about the Customer (including business and personal credit reports, financial history, and credit ratings) for underwriting, updating, or collecting any bond or insurance obligation. This authorization is given in accordance with the Fair Credit Reporting Act and any applicable state laws. The Customer acknowledges that this credit report authorization extends to any renewal or future bond or policy, and to any updates or additional credit checks that a surety or insurer deems necessary while any bond or policy remains in force. If the Customer is an individual, the Agency or carrier may obtain a soft inquiry or hard inquiry credit report as needed. If an adverse action (such as denial of coverage) is taken based on information in a credit report, the Customer will be provided with any notice of adverse action required by law. By agreeing to this section, the Customer also authorizes any financial institution, creditor, or personal reference to release relevant information to the Agency or its surety/insurance partners as part of such credit and background evaluation.
The Customer understands and agrees to the following regarding premiums, fees, and charges:
By providing a credit or debit card number, bank account information, or other payment details to the Agency, the Customer authorizes the Agency (or its designated payment processor) to charge the Customer’s provided payment method for all premiums, fees, and applicable charges associated with the Customer’s insurance policy or surety bond purchase. This includes the initial premium and fees, as well as any agreed-upon future payments such as installment payments or renewals that the Customer has consented to. The Customer agrees that the Agency may save the payment information securely for the purpose of processing the current and future authorized transactions. For example, if the Customer opts to pay a bond premium annually or an insurance policy premium on an installment plan, the Customer’s credit card or bank account may be charged for each installment or renewal premium when due, without requiring additional signatures, provided that the Customer has been informed of the schedule and amount of such charges in advance.
Chargebacks and Returned Payments: The Customer understands that issuance of a bond or policy is contingent upon successful payment. If a credit/debit card charge is later declined, disputed without valid cause, or charged back by the Customer’s bank, or if an ACH (electronic check) payment is returned for insufficient funds or any other reason, the Customer agrees to promptly pay the amount due upon notice from the Agency. The Customer also acknowledges that non-payment of premium or rescission of payment may result in cancellation of the insurance policy or bond, subject to any notice requirements and grace periods required by California law. The Agency reserves the right to cancel any bond or policy ab initio (from the start) for non-payment if the initial payment fails, in accordance with insurer/surety guidelines and legal requirements. In the event of a payment failure, the Agency will notify the Customer and provide any required opportunity to cure the payment. If the Customer does not promptly provide an alternate payment, the policy or bond may be canceled for nonpayment. Any fees incurred by the Agency due to a returned check or failed payment (e.g. bank NSF fees or chargeback fees) may be charged to the Customer, and the Customer agrees to reimburse such fees.
Refunds to Payment Method: As noted in the Premiums, Fees and Refunds section, any premium refund that becomes due will be applied back to the original payment method when possible. By entering this Payment Authorization, the Customer also authorizes the Agency to credit any refunds back to the same card or bank account. If a refund is due but the original account is closed or unavailable, the Agency will contact the Customer to arrange an alternate refund method.
This authorization for payments is valid for the current transaction and any future adjustments or agreed recurring payments. The Customer may revoke consent for future automatic charges by providing written notice to the Agency at least five (5) business days before the next scheduled charge, but understands that withdrawal of payment authorization does not cancel any in-force policy or bond – to cancel coverage, the Customer must follow the cancellation procedures for that policy/bond. The Customer remains responsible for any outstanding amounts owed for coverage provided or services rendered.
Consent to Electronic Records: The Customer consents to receive all communications and documents electronically. The Agency and carriers will provide policies, bonds, endorsements, renewal notices, billing statements, cancellation or non-renewal notices, proof of insurance, and any other documents by electronic means (for example, via email with attachments, or via a secure web portal), instead of paper mail, whenever possible. By agreeing to this section, the Customer affirmatively opts-in to electronic delivery of insurance and surety documents, as permitted by law. This consent is voluntary and can be withdrawn by the Customer at any time.
Right to Opt-Out or Receive Paper: The Customer has the right to opt out of electronic delivery at any point, and may request paper copies of any document. To opt out or request paper copies, the Customer must notify the Agency in writing (which can be by email or other electronic means) or by phone. There is no charge for opting out, and at least one free printed copy of any record will be provided annually upon request. Even if the Customer consents to e-delivery now, the Customer may later withdraw consent to electronic records, and the Agency will then communicate via paper mail until electronic consent is given again. However, any actions taken before withdrawal of consent, including delivery of documents electronically, will remain valid and effective.
Scope of Consent: This consent applies to all documents and records related to the Customer’s insurance policies or surety bonds obtained through the Agency. This includes but is not limited to: application forms, this Agreement, policy or bond forms, declarations pages, evidence of insurance, notices of cancellation/non-renewal, invoices, privacy notices, and any other documentation required to be provided to the Customer. The Customer agrees that electronic documents (such as a PDF of a bond or insurance policy) satisfy any requirement that communications be provided “in writing.”
Hardware/Software Requirements: To access and retain electronic documents, the Customer must have a valid email address and a device with internet access and software capable of reading common file formats such as PDF. By accepting this Agreement, the Customer confirms they have the ability to receive and view PDF documents and other standard formats. If technical requirements change in a way that creates a risk the Customer may not be able to access documents, the Agency will inform the Customer of the new requirements and their right to withdraw consent.
Updating Contact Information: The Customer is responsible for providing the Agency with a current email address and phone number. If the Customer’s email address changes, the Customer must notify the Agency of the new address to ensure continued receipt of electronic communications. The Agency’s contact information for questions or updates regarding electronic delivery is provided at the end of this Agreement. The Customer may also update communication preferences via the Agency’s website or customer portal if available.
By consenting, the Customer agrees that electronic delivery is sufficient and meets any legal requirement that documents be “delivered,” “mailed,” or “provided” by the Agency or insurer/surety. The Customer also agrees that an electronic signature or clickwrap acceptance is binding and has the same effect as an original ink signature on a paper document.
For your protection, California law requires the following to appear on this form: Any person who knowingly presents false or fraudulent information to obtain or amend insurance coverage or to make a claim for the payment of a loss is guilty of a crime and may be subject to fines and confinement in state prison.
The Customer acknowledges this fraud warning. Providing materially false information in an application for insurance or a surety bond, or presenting a false claim, is insurance fraud and is a crime. The Agency will report suspected insurance fraud to state authorities as required by law. The Customer agrees to take care to ensure all information provided is truthful and accurate (see “Accuracy of Information” below).
(Note: Other state-specific fraud warnings may apply if a policy or bond is placed in a state other than California. If the Customer’s application or coverage is in a different state, the Agency will provide the appropriate fraud warning for that state.)
The Customer represents and warrants that all information and documentation provided to the Agency (and/or to any insurer or surety) in connection with obtaining a bond or insurance policy is true, correct, and complete to the best of the Customer’s knowledge. This includes all answers to application questions, financial statements, business information, personal information, and any other material facts. The Customer understands that the Agency and its carriers rely on the accuracy and honesty of the information provided in order to underwrite and issue the bond or policy. If any information provided by the Customer is discovered to be false, misleading, or materially incomplete, the Customer’s coverage or bond could be voided or rescinded, claims could be denied, and other legal consequences may result. The Customer may also be subject to prosecution under applicable fraud statutes for willful misrepresentations.
Duty to Update: If any relevant information changes or was unintentionally omitted during the application (for example, a change in business ownership, discovery of a past loss history, or a credit issue), the Customer must promptly inform the Agency. Do not wait until a claim occurs to disclose important information. Continuous accuracy is important – certain bonds and policies require ongoing disclosure of changes in risk.
Hold Harmless for Misstatements: The Customer agrees that if any misrepresentation, omission, or error in the information provided by the Customer (or by the Customer’s agents, employees, or representatives) results in any loss, cost, claim, or damages to the Agency or to the issuing insurance company/surety, the Customer will indemnify and hold the Agency and the carrier harmless from all such resulting loss or expense. For example, if the Customer provides incorrect information that causes a bond claim to be paid or causes the Agency to incur attorneys’ fees, the Customer will be responsible for those losses just as outlined in the Indemnification section of this Agreement. The Customer also agrees that the Agency and carriers shall not be liable for any damage or loss caused by the Customer’s provision of false or inaccurate information. The Customer assumes full responsibility for the accuracy of all statements and documents submitted. The Agency does not guarantee or warrant that it will independently verify the Customer’s information; it is the Customer’s duty to be truthful and thorough.
No Agency Guarantee of Coverage: The Customer understands that the Agency, as an insurance broker/agent and bond producer, does not and cannot guarantee that coverage will be available for every claim or loss, especially if based on information later found untruthful or if the loss is otherwise not covered by the policy/bond terms. Coverage decisions (such as claim approvals or denials) are made by the insurance carrier or surety according to the contract terms and the law. The Agency will facilitate communication with the carrier or surety, but ultimate decisions are outside the Agency’s control. Under no circumstances will the Agency or its agents be liable for claims or damages that are denied or unpaid by a carrier due to the Customer’s misstatement or policy exclusions. The Customer agrees to hold the Agency harmless from any such outcomes, which are a result of the Customer’s actions or the contractual conditions of coverage.
This Agreement shall be governed by the laws of the State of California, without regard to its conflicts of law principles. The parties agree that any dispute, claim, or legal action arising out of or relating to this Agreement, or the products/services provided by the Agency, shall be brought exclusively in the courts of the State of California. If state court jurisdiction exists, the venue shall lie in a state court of competent jurisdiction located in California; if federal jurisdiction exists, the venue shall be in the United States District Court for the appropriate district of California. The Customer expressly consents to personal jurisdiction in California for such purposes. In the event of litigation, and unless prohibited by law, venue will be deemed appropriate in the county where the Agency’s principal office is located in California, or another county in California as the Agency may designate. The Customer waives any objection to such venue as inconvenient or improper.
Acceptance by Purchase or Use. By purchasing, requesting issuance, renewing, reinstating, or modifying any surety bond and or insurance product or service through Shield Liability, LLC dba Insurance Services by Shield (“Shield”), or by authorizing payment for any such product or service, Customer agrees to be bound by this Indemnity and Disclosures Agreement (“Agreement”). If Customer signs this Agreement, the signature is an additional method of acceptance and does not limit electronic acceptance.
Checkout Acknowledgment. Customer’s electronic acceptance, including checking an “I agree” box, clicking “Purchase,” “Pay,” “Place Order,” “Submit,” or similar button, or otherwise completing checkout, constitutes Customer’s electronic signature and agreement to this Agreement to the maximum extent permitted by law.
Electronic Delivery and Record Retention. Customer consents to doing business electronically and to receiving this Agreement, policies, bonds, notices, invoices, payment confirmations, renewals, cancellations, and other documents and communications electronically. Customer acknowledges they had the opportunity to review this Agreement before purchase and can download, save, or print a copy for their records.
Incorporation by Reference. Shield’s Terms of Use and Privacy Policy are incorporated by reference as if fully set forth here. If there is any conflict between this Agreement and the Terms of Use or Privacy Policy, this Agreement controls with respect to indemnity, payment authorization, disclosures, and bond and/or insurance transactions.
We may update this Agreement from time to time by posting an updated version and revising the “Last Updated” date above. Unless otherwise required by law, the version in effect at the time you complete a purchase or authorize a transaction governs that transaction. Updated versions apply only to future transactions.
If you have any questions, concerns, or comments about our Indemnity Agreement & Disclosures, or if you need to contact us for any reason (including to provide any required notices or to resolve a dispute), you may reach us at: