Letter of Indemnity

A Letter of Indemnity (LOI) is a legal document in which one party guarantees to compensate another for any loss or damage arising from a specific transaction. In shipping, an LOI is often used to facilitate the release of cargo without the original bill of lading. The shipper or consignee issues the LOI to the carrier, promising to cover any liabilities if the cargo is released without the required documentation. This document protects the carrier from legal and financial risks while ensuring timely cargo delivery. A properly drafted LOI includes clear terms, the scope of indemnity, and the responsibilities of each party.

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