Hold Harmless Agreement
What Does Hold Harmless Agreement Mean?
A hold harmless agreement is a clause in a contract that relieves one party of any liability with the consent of a second party. The second party assumes the legal responsibility for damage or injury.
It is also known as the hold harmless provision or hold harmless clause
Insuranceopedia Explains Hold Harmless Agreement
The hold harmless agreement is forged when one party asks another to perform a task that comes with some risk. A company might hire a contractor, for instance, and include a hold harmless provision in the contract that absolves them from responsibility for any damage or injury that arises from the contractor's work. In a broad hold harmless agreement, the contractor could even be held responsible for mistakes that would otherwise be attributed to the company.