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Letter of Indemnity Template
What Is a Letter of Indemnity?
Whenever two parties are agreeing to work together on a project, a Letter of Indemnity should be used to ensure no harm will come to either party should one party not be able to hold up their end of the agreement. A printable Letter of Indemnity template can be downloaded through the link below.
Alternate Names:
- Indemnification Letter;
- LOI.
An Indemnity Letter can also be used in court during a dispute to assess the fairest way to settle a disagreement between two parties based on the agreement both parties had signed. For example, if Company A offers to fix the locks on all the door of Company B's property, but finds that the locks needed are out of stock and the supplier is unsure of when they will be available, both parties can refer to the Indemnity Letter they agreed to decide if Company B will agree to install different locks, if Company B is willing to wait until the original locks are restocked, or if both companies will agree to a partial refund since the fault was from neither party.
How to Write a Letter of Indemnity?
To create a Letter of Indemnity you will want to include the following information:
- Title the document as a "Letter of Indemnity."
- Date the document both parties will sign the letter and the names of both parties signing the agreement.
- Wording about the state where the agreement is taking place in (this will later be used if the matter is taken to court).
- Write out what the agreement entails. Include the duties that will be performed by one party and the method of compensation the second party agrees to, including any dates that both parties have agreed the work will be completed by. You will want this to be accurate and thorough since this is what both parties will be agreeing to and using as a reference point if the matter has to be taken to court.
- Wording such as "for good and valuable consideration" should be included, which will signify that each party agrees to the agreement terms.
- Include any potential situations that could arise that could impede, hinder, or stop the work being completed and how each party plans to move forward in such an event. This is where both parties will agree to indemnify each other and ensure that each side is harmless in such events.
- You will also want to include alternative options to the original plan that both parties agree to so that the work could still be completed in a reasonable amount of time.
- Final date and signature sections for members of both parties.
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