Letter of Indemnity

A Letter of Indemnity is a document where one party agrees to compensate another for potential losses or damages. In shipping, it releases goods without the original bill of lading.

This document is used in international trade, banking, and legal agreements. It ensures financial protection for parties involved in transactions.

For example, in shipping, it allows the consignee to receive goods without presenting the original bill of lading, reducing delays.

Insurance companies, banks, and shipping firms frequently use Letters of Indemnity to manage risks.

In law, it serves as a contractual agreement, outlining the compensating party’s responsibility.

The primary users include freight forwarders, insurance brokers, and trading companies.