Letters of indemnity should include the names and addresses of both parties involved, plus the name and affiliation of the third party, if any. Detailed descriptions of the items and intentions are also required, as are the signatures of the parties and the date the contract is executed. To ensure maximum effectiveness, it is recommended

These letters promise to make one or more parties to a contract whole again if a contractual obligation doesn’t end up being fulfilled. For instance, in finance, LOIs can be used to protect against losses from lapses in security, documentation, or procedure. Banks or insurance companies issue LOIs to cover parties against financial losses from