What should you know about Hold Harmless?
Hold Harmless Agreement
Hold Harmless Agreement is established between two parties to protect the indemnity from any unforeseen damages, liabilities or claims during their involvement in an activity. The party which promises to reimburse the indemnity for any losses or claims is known as indemnifier. This is known as indemnify I.e two parties might settle a dispute, when one of them agrees to pay the losses holding the other harmless.
This indemnification agreement is often provided to a company’s officers and directors so as to minimize potential personal liability for actions taken in their capacity as officers and directors.
Use a Hold Harmless Letter if :
- You want to be protected from the damages and liabilities caused to you property by another party.
- You are afraid that your activities might cause trouble for someone and hence you want to protect them from being sued.
- You want to be protected from liability if a third party is harmed.
Hold Harmless v/s Indemnify
Indemnity literally means that if a party suffers losses you have to reimburse them. Indemnity was originally not a technique of recovering compensation for breach of contract. It’s original purpose was to compensate the other party for the losses caused by an event for which indemnifier was not to blame. Indemnity should not be compared with a damages claim. These are different things.
If you include the words “hold harmless” or you are saying that you will indemnify the other party, in an agreement then it does not mean that you are saying that they will suffer no harm. Instead it means that you hold them blameless.
Hold Harmless Template
The Hold Harmless and Indemnification Agreement is entered into by and between _________, herein after “Promisor” and ________ herin after “promise, on this _______ day of ______ 20__ in [City,State].
The intent of the Agreement is to indemnify Promisee from any claims arising from and related to [agreement between Promisor and Promisee].
FOR VALUABLE CONSIDERATION, the receipt of which hereby acknowledged, Promisor and Promisee agree as follows:
Promisor will indemnify and hold harmless Promisee from any and all claims, actions and judgements including all costs of defence and attorney’s fees incurred in defending against same, arising and related to [subject of agreement between Promisor and Promisee]. Promisor’s actions include the acts of Promisor’s agents and employees.
In the event any claim or suit is brought against within the scope of the agreement, Promisor shall pay for legal counsel chosen by Promisee to defend against the same.
This agreement encompass claims resulting from [any actrions that may give rise to a claim against Promisee].
In the event party files suit in a court of law to interpret or to enforce the terms of this agreement, the party prevailing in such action shall be entitled, in addition to any legal fees incurred in defending against any third party claim. To its reasonable legal fees and costs incurred insuch action to interpret or enforce the terms of the agreement.
This agreement shall be interpreted under the laws of the state of ______.
Promisor Signature Promisee Signature
Hold Harmless Clause
It is a statement in a contract stating that an organization or an individual will not be held responsible for any injuries or damages caused to the individual signing the contract. The individual may be asked to sign a hold harmless agreement.