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What does it mean to hold harmless and indemnify?

It defines hold harmless as follows: To absolve (another party) from any responsibility for damage or other liability arising from the transaction; INDEMNIFY. (It defines indemnify as follows: To reimburse (another) for a loss suffered because of a third party's or one's own act or default.

Is indemnification the same as hold harmless?

At least one authority claims that hold harmless protects against losses and liabilities, while indemnify protects against losses alone. Yet not all courts agree. Black's Law Dictionary treats the two as near synonyms. And some experts even suggest cutting hold harmless and leaving just indemnify.

What is the purpose of a hold harmless clause?

hold harmless clause. A provision in an agreement under which one or both parties agree not to hold the other party responsible for any loss, damage, or legal liability. In effect, this clause indemnifies the parties on a unilateral or reciprocal basis (as the case may be).

Does indemnification include defense?

An indemnification provision can include payments of actual damages to a third party, defense costs and attorney's fees. One main key to indemnification is that the provision generally does not kick in until money, in the form of a settlement or judgment, is due and owing.

What's a hold harmless agreement?

A hold harmless agreement is a clause typically included in construction contracts to release one party from consequences or liabilities due to the act of the other. A hold harmless agreement clause in a contract document should have specific language to protect the contractor or the intended parties.

How do I fill out a hold harmless agreement?

The date of the agreement. The name of the person held harmless or protected, with their address. The name of the other party to the agreement, with their address. Details about the activity or event the agreement is about, such as horseback riding or country club membership.

How do I fill out an indemnity agreement?

You're allowing someone to use your property, and you want to be protected against damages caused by the other party. You're hiring someone to provide services for yourself or your business. You want to protect someone from being sued by others because of your activities.

What is the purpose of an indemnity agreement?

Indemnity is considered to be a contractual agreement between two parties whereby one party agrees to pay for potential losses or damages caused by another party. With indemnity, the insurer indemnifies the policyholder that is, promises to make whole the individual or business for any covered loss.

Should I sign indemnity agreement?

It's still your business decision whether you sign them or not, but you should do so only where it is a critical contract that you have no way of modifying or negotiating changes. In contrast, the best kind of Indemnity Agreement is commonly called a Mutual Indemnity Agreement or a Mutual Hold Harmless Provision.

How does an indemnity work?

Indemnity refers in some contexts as compensation for loss or damage from the actions of another party. Indemnity can also refer to a legal exemption from loss or damages, as in the case of an indemnity clause in a contract, in which one party agrees to take the liability for loss or damage from another party.

What is the concept of indemnity?

Indemnity is considered to be a contractual agreement between two parties whereby one party agrees to pay for potential losses or damages caused by another party. With indemnity, the insurer indemnifies the policyholder that is, promises to make whole the individual or business for any covered loss.

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