Hold Harmless Agreement Definition
A hold harmless agreement is a contract between two parties in which one party agrees to protect the other from any losses or damages that may arise from a specific activity. The party agreeing to be held harmless typically has some level of control over the activity in question and is thus in a position to prevent or mitigate any potential losses.
In many cases, hold harmless agreements are used to protect businesses from liability for the actions of their employees. For example, if an employee of a company causes damage to someone else’s property, the company may be protected from liability under a hold harmless agreement. Similarly, if an employee of a company is injured while working, the company may be protected from liability for workers’ compensation benefits.
Hold harmless agreements can also be used to protect individuals from liability for their own actions. For example, if someone is participating in a dangerous activity, they may be asked to sign a hold harmless agreement in order to participate. This type of agreement typically releases the activity organizer from any liability for damages that may occur during the activity.
Finally, hold harmless agreements can also be used to protect against liability arising from third-party actions. For example, if a company contracts with another company to provide services, the contracting company may require that the service provider sign a hold harmless agreement. This type of agreement would protect the contracting company from any losses or damages that may occur as a result of the services provided by the other company.
