What is a Hold Harmless Agreement?
A Hold Harmless Agreement, also commonly referred to as an Indemnity Agreement, protects someone from liabilities, losses, claims, or damages when conducting a service, transaction, or activity with another party.
A Hold Harmless Agreement is also known as a no-fault agreement or assignment of indemnity.
Hold Harmless vs. Indemnity Agreements
The terms Hold Harmless Agreement and Indemnity Agreement are commonly used interchangeably, and the contract is legally known by both names.
Hold harmless is typically more relevant for a contract that releases a party from liability for injury or damages, whereas indemnity is more commonly used for financial compensation for damages.
An agreement can include both the release of liability and the determination of who is responsible for any compensation for loss or damage. LawDepot’s template is available to make your contract using either name and is customizable to suit your unique situation.
| For a simpler agreement, you can use a Release of Liability or an Activity Waiver that also protects against liabilities, losses, claims, or damages. However, these forms are used for shorter-term business relationships. |
Purpose of a Hold Harmless Agreement
A Hold Harmless Agreement’s primary purpose is risk management. Generally, one party accepts:
- The risk of an activity, transaction, or service
- Responsibility for paying any damages that are, or might be, incurred
Certain contracts hold greater risks than others. The benefit of a Hold Harmless and Indemnity Agreement is that it allows contracted parties to minimize disputes by outlining when and how one party should compensate the other or reduce legal liability.
It’s important to note that this agreement does not excuse a party from gross negligence, fraud, or other unlawful behavior. However, it outlines a course of legal remedies should an incident occur despite the parties’ best efforts.
When should I use a Hold Harmless Agreement?
You should use a Hold Harmless or Indemnity Agreement if there’s a likelihood for injuries, property damage, or other accidents to occur.
For example, you may wish to enter an agreement when:
Please note that LawDepot’s Hold Harmless Agreement is unilateral (one-sided), meaning that only one party is agreeing to waive the other from liability.
If you have questions or are unsure if a Hold Harmless Agreement is needed for your situation, talk to a lawyer for further advice.
Key components of a Hold Harmless Agreement
The essential elements of a Hold Harmless and Indemnity Agreement include:
- Both parties' details (i.e., the indemnitee and indemnifier)
- Description of the activity, transaction, or service
The scope of protection, such as covered losses and exclusions, or compensation limits
- Each party’s responsibilities, such as who is responsible for liability insurance
- The governing law that will enforce the agreement
- The signature of both parties
LawDepot’s state-specific, customizable template prompts you to include all the key components for a valid contract.
How to create a Hold Harmless or Indemnity Agreement
You can easily create your Hold Harmless or Indemnity Agreement using LawDepot’s user-friendly template to have a printable PDF of your contract. Simply select if this agreement will protect you or the other party, then follow these steps:
1. Select location and terms
First, choose the state where the activity or transaction is located. Then, select any additional terms you would like to include in your agreement, such as:
- Liability insurance requirements
- Protection against the costs of a criminal proceeding
- A confidentiality clause
- Limit to the monetary amount of protection
2. Determine what the agreement is for
Our template allows you to customize your agreement for services, activities, or transactions (e.g., rental or sale).
If you’re unsure which category to choose, you can select the activity option, as this can describe most situations in which one party protects another from risk and liability.
3. Name both parties
Provide the full name and address of the parties in the agreement (whether individuals, corporations, or organizations).
If there is more than one person or organization for either the indemnitee or indemnifier, be sure to include all the names for each party.
4. Include a description clause
Describe the activity, service, or transaction taking place. Our questionnaire will provide prompts to help you create a thorough description of your agreement.
5. Add the final details
Our template allows you to include any additional terms or information in your agreement that may be unique to your situation. However, most people don’t need to create additional terms.
To finish your contract, select a signing date if you have one already in place, and include whether any witnesses will be present when you and the other party sign.
Hold Harmless Agreement FAQs