Hold Harmless Agreement
A Hold Harmless Agreement is also known as:
- Indemnity Agreement
- No Fault Agreement
What is Indemnity?
Indemnity is a form of insurance provided by one party (the indemnifier) to another party (indemnitee) in the event the indemnitee experiences loss or damages during an activity, such as a tenancy, consulting assignment, construction project etc.
What is a Hold Harmless (Indemnity) Agreement?
A Hold Harmless (Indemnity) Agreement is used between two parties to establish that the indemnitee is protected from any unforeseen liabilities, losses, claims or damages during their involvement in an activity. The indemnifier is the one who promises to reimburse them (the indemnitee) for any claims, liabilities or losses.
When is a Hold Harmless (Indemnity) Agreement typically used?
There are many circumstances that can call for an Indemnity Agreement. Here are some common situations:
- Before a tenancy, a landlord might include an indemnity clause in the lease agreement stating that the landlord is not liable for tenant negligence in his or her rental property.
- If a business hires an employee or contractor, it can use an Indemnity Agreement to absolve responsibility for any injuries or accidents caused by employees or contractors in the workplace.
- Those who own high-risk or thrill-seeking businesses, such as amusement parks, or skiing or sky-diving companies, may have customers sign an Indemnity Agreement to avoid being held responsible for liabilities due to injury or accidents that are not the fault of the business.
- If an individual has agreed to manage, host or facilitate an event, such as a concert or charity fundraiser, he or she can request to be protected through an Indemnity Agreement in case of potential loss or accident.
- When hired by a business, consultants may have their clients sign an Indemnity Agreement to relieve them of any liability that might come from the work they produce.
When are Hold Harmless (Indemnity) Agreements not enforceable?
A Hold Harmless Agreement would not be enforceable if the indemnitee was found to be negligent or the cause of any accidents, such as through faulty equipment, improper attention, or poor maintenance.