Hold Harmless Agreement
A hold harmless agreement is a type of contractual agreement that protects one party from being liable for another party’s personal injury or damages. It’s often used by businesses that host events, provide services that may incur some level of risk, or have customers on site.
What is a hold harmless agreement?
If you’ve ever bought tickets to a music festival, participated in sponsored outdoor activities, or gone to the gym, you’ve likely signed a hold harmless agreement. This type of contract—also known as a release waiver—protects one party from being sued if the other party experiences financial loss, personal injury, or other damages. It serves as a form of risk management, helping businesses avoid or reduce legal fees.
Businesses that commonly use hold harmless agreements to protect their own liability are:
- Outdoor adventure companies
- Event hosts, like concert and wedding venues
- Property managers
- General contractors
- Spas and gyms
To be legally enforceable, hold harmless agreements must contain specific language about the activity or risk, include the proper hold harmless clauses, and clearly note the parties involved. However, a party will likely be legally liable if there was negligence.
FAQs
Do hold harmless agreements hold up in court?
Hold harmless agreements should hold up in court if they abide by state laws, include all the elements of a legal contract (e.g., the proper language and hold harmless clauses are used), and do not go against public interest. Learn more about the ins and outs of hold harmless agreements.
Why do you need a hold harmless agreement?
You might need a hold harmless agreement if there is a chance that someone could suffer from a bodily injury, financial loss, or other damages when on your business property, at an event you’re hosting, or receiving services from you. This type of signed agreement can protect you from legal liability.
Can I write my own hold harmless agreement?
Technically, yes, you can write your own hold harmless agreement, but it’s wise to consult an attorney to help draft and review the hold harmless provisions before presenting the contract to clients and customers. LegalZoom even has liability waiver templates that businesses can customize to fit their needs.
Who is protected in a hold harmless agreement?
In a unilateral hold harmless agreement, the company or independent contractor that drafts and presents the contract is the party protected in a hold harmless agreement. It essentially means that one party receiving services (the customer) will not hold the other party liable (the business or service provider) for damages. With the reciprocal type of hold harmless agreement, both parties agree to hold the other party harmless, therefore both have legal protection.
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