what are the risks of a letter of indemnity 
a loi is designed to manage risks but some could come with using them any loi must be properly executed to be legally enforceable explicitly defining what is covered and specifying the obligations of all parties how effective and enforceable an loi is depends on its precise wording and the jurisdiction in which it s executed the bottom linea loi assures a party to a contract that they will be made whole for any losses that result from the other party many times a third party like an insurance company agrees to indemnify against loss or damage that stems from a contract 