A Hold Harmless Agreement (also known as an Indemnity Agreement) is a legally-binding contract that acts to protect one party from liability or loss. It stipulates that one of the parties will not hold the other liable for any claims, damages, losses, or expenses arising out of their agreement. In other words, it keeps both parties safe: if either side fails to uphold its obligations, they can’t be held responsible by the other. The agreement should clearly state the terms and conditions of each party’s obligation – and make certain that everyone agrees to those terms. With a sound Hold Harmless Agreement in place, your business dealings can be carried out with confidence that both parties understand and accept the risks involved.