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A Hold Harmless (Indemnity) Agreement is used between two parties (such as an employer and employee) to establish protection from liabilities, losses, claims, or damages for one of the parties during their involvement in an activity.
The main difference in this case is that “hold harmless” may require a party to protect against actual losses as well as potential losses while indemnification protects against actual losses only.
By signing a broad form hold harmless agreement you are possibly exposing your company to uninsurable risk. Contractual Liability Coverage for sole or gross negligent acts of your client is excluded is y most liability policies. As with all contracts, it is best to have legal counsel review prior to signing.
A hold harmless clause is used to protect a party in a contract from liability for damages or losses. In signing such a clause, the other party accepts responsibility for certain risks involved in contracting for the service.