A Letter of Indemnity (LOI) provides contractual protection. One party assures another against potential losses. It’s vital in situations with risk.
Use cases include shipping, finance, and construction. The LOI shifts risk to the indemnifying party. Carefully define liabilities to avoid disputes.
When drafting, specify the triggering event, the covered losses, and the duration. Seek legal advice to ensure enforceability and clarity in your LOI.
Consider including limits on liability. Include conditions precedent for indemnity. Proper drafting ensures robust protection under the agreed terms.
Letter of Indemnity Samples
Sample 1: Shipping Indemnity
Date: October 26, 2023
To: Shipping Company X
From: ABC Importers
Subject: Indemnity for Release of Goods Without Original Bill of Lading
Dear Shipping Company X,
We, ABC Importers, hereby request the release of goods detailed below without presentation of the original Bill of Lading due to its misplacement:
* Container Number: XXXX1234567
* Description of Goods: Electronics
* Voyage Number: YY123
In consideration of your compliance with this request, we irrevocably and unconditionally indemnify you, your servants, and agents against all consequences, liabilities, losses, damages, costs, and expenses of whatsoever nature which you may sustain by reason of releasing the said goods without presentation of the original Bill of Lading. This indemnity shall remain in full force and effect until the original Bill of Lading is presented to you or until you are otherwise released in writing by us. We also confirm that we are the rightful owners of the goods. ABC Importers guarantees full responsibility.
Sincerely,
ABC Importers
Sample 2: Bank Guarantee Indemnity
Date: October 26, 2023
To: First National Bank
From: XYZ Corporation
Subject: Indemnity regarding Issuance of Bank Guarantee
Dear First National Bank,
We, XYZ Corporation, request that you issue a Bank Guarantee in favor of [Beneficiary Name] for the amount of [Amount] to secure our obligations under [Contract Name].
In consideration of your issuing said Bank Guarantee, we hereby agree to indemnify and hold you harmless against all claims, demands, actions, proceedings, losses, costs, damages, and expenses which you may incur or sustain by reason of issuing said Bank Guarantee, or in connection therewith, including, but not limited to, any payments made under said Bank Guarantee. This indemnity shall remain in full force and effect until the Bank Guarantee is cancelled by the beneficiary. We acknowledge our full liability.
Sincerely,
XYZ Corporation
Sample 3: Lost Share Certificate Indemnity
Date: October 26, 2023
To: Acme Share Registry
From: John Doe
Subject: Indemnity for Issuance of Duplicate Share Certificate
Dear Acme Share Registry,
I, John Doe, the registered holder of [Number] shares in [Company Name], represented by share certificate number [Certificate Number], hereby declare that the said share certificate has been lost/misplaced/destroyed.
I request that you issue a duplicate share certificate in my name. In consideration of your complying with this request, I hereby undertake to indemnify you and keep you indemnified against all losses, damages, costs, claims, demands, and expenses whatsoever which you may incur or sustain by reason of issuing such duplicate share certificate. I further agree to surrender the original share certificate to you should it ever come into my possession. Indemnity is provided without limitations.
Sincerely,
John Doe
Sample 4: Construction Project Indemnity
Date: October 26, 2023
To: General Contractors Inc.
From: Subcontractors Ltd.
Subject: Indemnity Regarding Construction Work at [Project Address]
Dear General Contractors Inc.,
This letter serves as an indemnity for our subcontracted work at the construction project located at [Project Address], as per the subcontract agreement dated [Date].
We, Subcontractors Ltd., agree to indemnify and hold you harmless from and against any and all claims, liabilities, damages, losses, costs, and expenses (including attorneys’ fees) arising out of or relating to our performance of the subcontract work, including, without limitation, any claims for personal injury, death, or property damage, to the extent caused by our negligence or willful misconduct. Our liability is directly correlated.
Sincerely,
Subcontractors Ltd.
Sample 5: Data Loss Indemnity
Date: October 26, 2023
To: Cloud Storage Provider
From: Data Solutions Inc.
Subject: Indemnity for Potential Data Loss
Dear Cloud Storage Provider,
We, Data Solutions Inc., understand the inherent risks associated with cloud data storage. As such, we acknowledge the potential for data loss due to unforeseen circumstances.
While we rely on your services for data storage, we agree to indemnify you against any claims, losses, or damages arising from the loss of our data, provided such loss is not directly caused by your gross negligence or willful misconduct. This indemnity covers all associated costs. Full accountability.
Sincerely,
Data Solutions Inc.
Sample 6: Financial Transaction Indemnity
Date: October 26, 2023
To: Investment Firm Alpha
From: Investor Beta
Subject: Indemnity for Financial Transaction Risks
Dear Investment Firm Alpha,
Regarding our investment transaction on [Date], I, Investor Beta, understand the inherent risks associated with financial markets and potential losses.
I hereby agree to indemnify and hold Investment Firm Alpha harmless from any losses, liabilities, or damages resulting from the performance of the investment transaction, except in cases of gross negligence or willful misconduct on your part. This excludes illegal practices.
Sincerely,
Investor Beta
Sample 7: Legal Settlement Indemnity
Date: October 26, 2023
To: Law Firm Gamma
From: Client Delta
Subject: Indemnity for Legal Settlement Outcomes
Dear Law Firm Gamma,
In connection with the settlement agreement reached in the case of [Case Name], I, Client Delta, understand that the outcome of the settlement involves certain risks and uncertainties.
I agree to indemnify and hold Law Firm Gamma harmless from any and all claims, liabilities, or damages arising from the settlement agreement, provided that you have acted in good faith and with due diligence in advising me regarding the settlement. We ensure comprehensive adherence to the legal standards.
Sincerely,
Client Delta
Sample 8: Warranty Claim Indemnity
Date: October 26, 2023
To: Electronics Retailer Epsilon
From: Manufacturer Zeta
Subject: Indemnity for Warranty Claim Resolution
Dear Electronics Retailer Epsilon,
Regarding warranty claims for our products sold in your store, we, Manufacturer Zeta, agree to indemnify you against valid warranty claims made by customers.
We will reimburse you for the costs associated with repairing or replacing defective products under warranty, provided that the warranty claims are processed in accordance with our established warranty policies. This ensures customer satisfaction.
Sincerely,
Manufacturer Zeta
Sample 9: Intellectual Property Indemnity
Date: October 26, 2023
To: Software Developer Theta
From: Content Creator Iota
Subject: Indemnity for Intellectual Property Use
Dear Software Developer Theta,
In connection with the use of my copyrighted content in your software application, I, Content Creator Iota, agree to indemnify you against any claims of copyright infringement brought by third parties.
I warrant that I own or have the necessary rights to grant you the license to use the content in your application. We bear full responsibility for content.
Sincerely,
Content Creator Iota
Sample 10: Loan Default Indemnity
Date: October 26, 2023
To: Lending Institution Kappa
From: Guarantor Lambda
Subject: Indemnity for Loan Default
Dear Lending Institution Kappa,
As the guarantor for the loan taken by [Borrower Name], I, Guarantor Lambda, agree to indemnify you against any losses incurred due to the borrower’s default on the loan.
I will be liable for the outstanding loan balance, including principal, interest, and any related fees or expenses, in the event that the borrower fails to repay the loan as agreed. We are obligated to the conditions.
Sincerely,
Guarantor Lambda
Sample 11: Service Interruption Indemnity
Date: October 26, 2023
To: Internet Service Provider Mu
From: Business User Nu
Subject: Indemnity for Service Interruption
Dear Internet Service Provider Mu,
We, Business User Nu, understand that occasional service interruptions may occur with internet service. We agree to indemnify you against claims for damages related to service interruptions, except in cases of gross negligence by ISP.
The indemnity covers any losses to the business. We will ensure to review comprehensive internet service interruption.
Sincerely,
Business User Nu
Sample 12: Supplier Indemnity for Product Defects
Date: October 26, 2023
To: Retailer Xi
From: Supplier Omicron
Subject: Indemnity for Product Defects
Dear Retailer Xi,
As the supplier of goods to your retail store, we, Supplier Omicron, agree to indemnify you against claims for product defects related to the items supplied.
We will refund for the replacement of defective products based on a warranty check. This ensures product satisfaction.
Sincerely,
Supplier Omicron
Sample 13: Event Cancellation Indemnity
Date: October 26, 2023
To: Venue Provider Pi
From: Event Organizer Rho
Subject: Indemnity for Event Cancellation
Dear Venue Provider Pi,
We, Event Organizer Rho, agree to indemnify your company for all losses caused by unforeseen cancellations of the event. *Event to be reviewed.*
We will reimburse you if there are venue cost and operational costs, if needed.
Sincerely,
Event Organizer Rho
Sample 14: Security Breach Indemnity
Date: October 26, 2023
To: Cybersecurity Firm Sigma
From: Client Tau
Subject: Indemnity for Security Breach
Dear Cybersecurity Firm Sigma,
Client Tau agrees to indemnify security firm sigma for all the loses related to any security breach. Our company can work without any breach of contract. We adhere to comprehensive cybersecurity protocols.
We will reimburse if related costs are there.
Sincerely,
Client Tau
Sample 15: Environmental Damage Indemnity
Date: October 26, 2023
To: Environmental Cleanup Company Upsilon
From: Industrial Firm Phi
Subject: Indemnity for Environmental Damage
Dear Environmental Cleanup Company Upsilon,
We, Industrial Firm Phi, agree to indemnify Cleanup Company, for all the Environmental damage and losses. *For future review*.
We will have reimburse if there are any cause to related costs if any environmental damage happened.
Sincerely,
Industrial Firm Phi
Sample 16: License Agreement Indemnity
Date: October 26, 2023
To: Software Distributor Chi
From: Software Developer Psi
Subject: Indemnity for License Agreement
Dear Software Distributor Chi,
For Distribute and sell Software , we will Indemnify you for the losses caused related to software piracy. We will ensure no software piracy happens.
If we do breach the contract, you will be fully reimbursed.
Sincerely,
Software Developer Psi
Sample 17: Transport Indemnity
Date: October 26, 2023
To: Shipping Company Omega
From: Goods Owner Alpha2
Subject: Indemnity for Transport Losses
Dear Shipping Company Omega,
For any delay of the delivery of goods, We shall Indemnify, Shipping Company. We will ensure full transport of goods happen with no loss.
If we cause delays for delivering the goods, we will reimburse.
Sincerely,
Goods Owner Alpha2
Sample 18: Security Services Indemnity
Date: October 26, 2023
To: Security Firm Beta2
From: Property Owner Gamma2
Subject: Indemnity for Security Services
Dear Security Firm Beta2,
For any losses happening, we would pay Indemnity to the security services.
We will fully comply. Ensure security personnel are fully aware.
If theft cases increase, and no one is caught we pay for the losses.
Sincerely,
Property Owner Gamma2
Sample 19: Insurance Indemnity
Date: October 26, 2023
To: Insurance Company Delta2
From: Policy Holder Epsilon2
Subject: Indemnity for Insurance Policy
Dear Insurance Company Delta2,
If any Insurance related losses are there, Policy Holder has to Indemnify for all the Losses happening due to not paying for insurance claims.
If we claim fraudulent, you are entitled to a refund, due to a break of conduct.
Sincerely,
Policy Holder Epsilon2
Sample 20: Real Estate Indemnity
Date: October 26, 2023
To: Property Buyer Zeta2
From: Property Seller Eta2
Subject: Indemnity for Real Estate Transactions
Dear Property Buyer Zeta2,
Any Real Estate related losses or contract related losses will have to Indemnify, to the property buyer with losses.
Ensure contract is fully filled before signing, we have had to resolve issues related to real estate.
Sincerely,
Property Seller Eta2
Letters of Indemnity are powerful tools, but require careful drafting and legal review. These samples provide a starting point, but should not be used without professional advice.