To paraphrase a valued client, “A contractor without a bond really isn’t a contractor.” Bonds certainly allow for the performance of governmental work and opportunities for private work. A payment bond is intended to ensure payment to subcontractors and suppliers. A performance bond generally guarantees the completion of a contract if a contractor defaults.
To to so, a contractor must deal with a surety. The surety will almost certainly require the contractor to sign some form of indemnity agreement to encourage the surety to issue bonds and protect the surety from losses or expenses. It is entirely possible, and perhaps probable, that the surety will require that entities affiliated with the contractor also sign the indemnity agreement. Anyone signing the agreement will be separately responsible for indemnifying the surety.