LOI (Letter of Indemnity)

A Letter of Indemnity (LOI) is a document used to protect one party from potential losses or damages caused by another party's actions. In simple terms, it serves as a promise that if something goes wrong, the party providing the LOI will compensate for any resulting losses. This is commonly used in business transactions, shipping, and legal agreements where there might be risks involved. Essentially, it provides a form of assurance that the responsible party will cover costs if issues arise, helping to facilitate smoother dealings by managing potential risks.