These agreements should explain the type of risk involved. If you’re the customer or property renter or lessee, read the agreement carefully and get your attorney’s advice before signing it. They are completely separate things, born of distinct situations. Examples of When to Use a Hold Harmless Clause. What Are Some Examples of Hold Harmless Clauses? For example, a hold harmless stops a business from making a customer responsible for the customer's mistake, whereas the term "indemnify" makes it clear that the business hopes to protect against any claims that emerge from the customer's error. It would be simple to attach a hold harmless clause to anything one does, but the clause can only be enforced if the company or individual gives a fair assessment of the risk involved and all parties are aware and prepared. Limited: You agree to indemnify and hold harmless your client if a claim, demand or suit is brought against your client because of your direct negligent acts. There are two types of hold harmless clauses: In the event of extreme sports, for example, it is likely that only a unilateral clause would be needed. If you're not sure yet, leave it blank for the time being. This may include gross negligence, deliberate acts, or unforeseeable loss, which a hold harmless clause may otherwise make you accountable for. With a hold harmless clause, you claim that you not only indemnify and protect the other party but that you hold them completely harmless. This is why talking to the county where the transaction is taking place is essential before signing the agreement. These concepts should be made explicit with detailed language. Second to that, the use of very specific, nuanced language will help protect both parties by sealing your intentions. Here are some situations in which a hold harmless clause can often be found: In a hold harmless agreement, responsibility is shifted from one person to another. The reason that is most common is a code or lien issue that will take weeks or months to resolve and the new buyer will have to pull new permits or resolve the issue after he is on title. It can be used in many business transactions, even between a doctor and patient. If something happens after you close, you can always sue and claim a “material misstatement of facts” that intentionally withheld information necessary for a reasonable person to make an informed decision. When you sign a business’s Hold Harmless Agreement before the activity begins, you renounce your right to sue the business in the event of an accident. Indemnity and contractual obligations do not waive liability for those situations. A hold harmless clause is a legal statement that an individual or enterprise will not be held liable for the risk, danger, injury, or damages to another party. That's why insurance companies have a tendency to exclude. Whether a hold harmless agreement is something you should be happy or upset about depends upon its wording and usage. Sometimes, the clause is prohibited altogether, and this is especially true in some lines of work where it would be unfair for a person or company to escape responsibility. Don’t be mistaken, this has an impact on your business. The name of the individual who is representing and signing on behalf of the side offering protection from liability. The hold harmless agreement template is used in multiple industries like sports, contractors, and construction. The best way to protect yourself from such lawsuits is to create a hold harmless agreement (HHA), also called a liability waiver or release. For example, assume you sign a hold harmless while you are entering an ice skating rink. 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