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Hold Harmless Agreement Explained

hold harmless agreement

Hold Harmless Agreement Explained

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Hold Harmless Agreement def:

A hold harmless agreement is a provision in a contract that requires one contracting party to respond to certain legal liabilities of the other party. For example, a hold harmless agreement in construction contract typically requires the contractor to indemnify the owner with respect to the owner’s liability to members of the public who are injured or whose property is damaged during the course of the contractor’s operations. There are a number of types of hold harmless agreement clauses, differentiated by the extent of the liabilities they transfer. The most commonly used types of hold harmless agreement clauses are the “broad,” “intermediate,” and “limited” form hold harmless clauses.

  • Limited Form Hold Harmless Agreement—Where Party A holds Party B harmless for suits arising out of Party A’s sole negligence. Party B is thus protected when it is held vicariously responsible for the actions of Party A.
  • Intermediate Form Harmless Agreement—Where Party A holds Party B harmless for suits alleging sole negligence of Party A or negligence of both parties.
  • Broad Form Hold Harmless Agreement—Where Party A holds Party B harmless for suits against Party B based on the sole negligence of A, joint negligence of A and B, or the sole negligence of B. Broad form hold harmless agreements are unenforceable in a number of states.

See also Contractual liability; Contractual liability insurance; Contractual risk transfer; Indemnitee; Indemnitor.

A well structured contract can be a highly effective way to reduce risk in your business.  Speak to an ALIGNED Insurance Advocate for more details or connect with us at www.alignedinsuranceinc.com today.

More About ALIGNED Insurance

ALIGNED is a premiere insurance brokerage that was exclusively and uniquely built to create, negotiate and deliver the best business insurance and risk management strategies/solutions to small, medium and large organizations across all industries.  ALIGNED’s primary mission is to protect the cash flow, profitability and balance sheets of their clients from the chance of unforeseeable losses.

ALIGNED Across Canada   100% Canadian owned, ALIGNED is a premiere insurance brokerage that serves more than 1,400 clients across the country. ALIGNED’s offices in Toronto, Calgary and Vancouver are supported by a national operations centre in Cambridge, Ontario. Uniquely within the industry, ALIGNED creates, negotiates and delivers the best business insurance and risk management strategies/solutions to organizations like yours.

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