Letter of indemnity意思

A letter of indemnity (LOI) is a legal document that outlines a guarantee or protection against loss or damage. It is commonly used in international trade, shipping, and insurance to provide assurance to the recipient that any potential risks or liabilities will be covered.

In the context of shipping, for example, an LOI might be issued by a carrier to a shipper, promising to compensate the shipper for any losses or damages to the cargo during transit. This could be due to the carrier's negligence or any other unforeseen circumstances.

In the context of insurance, an LOI might be issued by an individual or company to an insurer, promising to cover any costs that might arise from a specific risk that is not covered by the existing insurance policy.

In legal terms, an LOI is a form of contract, and it is important that it is drafted carefully to ensure that it covers all potential scenarios and that the terms are clear and unambiguous.