Letter of Indemnity | Shipping Term Explained | Logistics Glossary
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GLOSSARY

Letter of indemnity

The indemnity letter states a third party that will cover the financial loss if one or more of the involved parties do not meet the agreed terms.

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What is a letter of indemnity?

The letter of indemnity is a document acting as an insurance document in case one or more of the involved parties do not meet the written terms. One of the involved parties normally requests this letter that will guarantee that there will be third party coverage for the loss in cases of a breach in the contract.

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