A letter of indemnity is a letter used in the world of business that is a protection against financial losses in the event an obligation is not upheld. For example, one party contracts to cut another parties front lawn. There may be a lawnmower shortage, so they issue a letter of indemnity stating if they do not cut the lawn, they will hire and pay someone else to do it for them.

Tips for writing a letter of indemnity:

-          Be polite

-          Make your offer clearly

-          Don’t waste time writing filler

Sample Letter of Indemnity

John Who

Chicago, Ill.

Dear John,

We are writing this letter to guarantee that the landscape job that we have contracted for with you will be completed. There has been a recent shortage of lawnmowers, so we may have trouble completing our obligations in regards to our contract. If we cannot locate an extra lawnmower to complete the job ourself, we will hire an outside contractor to complete the job for you at no additional expense to your company.

We apologize for the potential inconvenience, but your job will be completed as per the specifications laid out in our original contract.

Thanks,

Signature