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What is a hold harmless indemnity agreement?
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.
What is the difference between a hold harmless agreement and an indemnity agreement?
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.
Why you should not sign a hold harmless agreement?
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.
What is a hold harmless agreement used for?
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.