The Scoop on the Hold Harmless Agreement
If you want to understand the Hold Harmless Agreement, you should read our guide and get all the info. In case you need assistance with creating other legal documents, you can count on DoNotPay as well!
What Is a Hold Harmless Agreement?
A Hold Harmless Agreement, also known as a Hold Harmless Clause, is a legal contract between two parties in which one of them is released from the consequences of harming another one. This kind of legal clause can usually be found in construction contracts.
The Hold Harmless Agreement can be:
|Type of the Hold Harmless Agreement||Example|
|When you hire a construction worker and wish to ensure you are not held accountable if they injure themselves while working on your property|
|When the construction worker asks for protection as well. In case one of the house tenants walks into the construction area and injures themselves|
Both parties may sign this clause before or after an activity takes place.
Why Is the Hold Harmless Agreement Important, and When Should You Use It?
A Hold Harmless Agreement is important because it offers you protection from liability. You should know that it is not absolute protection against lawsuits. There are several possible situations when you should consider using a Hold Harmless Agreement. Create an agreement if:
- You are renting your house to someone and want to ensure you are not held accountable if they injure themselves
- Participants are practicing sports in a property you own and want to protect your business if they injure themselves
- You are hosting an event and don’t want to be held accountable if the participants suffer an injury during it
- There are contractors renovating your home at the time and you wish to protect yourself from liability if an incident occurs
- You are planning on performing a dangerous activity and want to make sure no one is held liable if you hurt yourself (skydiving, for example)
What Should a Hold Harmless Agreement Include?
When creating a Hold Harmless Agreement, you should be careful about the info you include in the document. It is important to cover all key sections and ensure the protection of both parties if possible. If you find yourself in a situation that requires you to make a Hold Harmless Agreement, make sure to include these details:
- Names of the individuals held protected or harmless and their addresses
- The date when the document is signed
- Signatures of both parties
- The date of the agreement
- Info about the person hosting the event and the location
- The date the agreement takes effect
- The length of the agreement
- Event or activity specifics
Basic Types of Hold Harmless Agreement in Construction
You can find three different types of Hold Harmless Agreement in the construction industry:
- Broad form—In this type of agreement, a subcontractor assumes all liability for accidents and negligence of both the subcontractor and contractor. Because the terms of this form are broad, a lot of jurisdictions prohibit it
- Intermediate form—The agreement is not based on whether an action was a subcontractor's fault or not. It depends only on who caused the accident or who was acting negligently. In case both parties were negligent, a subcontractor would be held accountable for their actions
- Limited form— A subcontractor will be responsible only for the accident or negligence on a limited form. They will assume liability only for the proportional part of what they were responsible for
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