A hold harmless agreement is a liability waiver that protects one party in the event that the other party gets injured during the working relationship between the parties. It is also referred to as a liability waiver and an indemnification agreement. One of the most common uses of a hold harmless agreement is in the construction industry. The subcontractor may agree to not sue the general contractor if they are injured on the job in some way. Sports organizations and fitness gyms also use hold harmless agreements to better protect themselves in the event that the participant or member is injured while participating.
Table of Contents
What Is a Hold Harmless Agreement? HHAs vs Insurance Policies How to Write an HHA Common Situations for HHA'sA Hold Harmless Agreement (HHA) is used to protect one party from liability from the actions of another party. It is typically used in situations where services are being provided, a party is using the property of another, or when a party is participating in an activity hosted by another. When an HHA is completed, the party agrees not to hold the hosting party responsible for injuries, damages, and other losses and liabilities. HHAs are also referred to as indemnity clauses (or waivers), a waiver of liability, hold harmless release, hold harmless letter, and liability releases.
A printable Hold Harmless Agreement may not always be valid. It may be invalid because one of the parties engaged in negligent behavior, illegal activities, or committed fraud.
In addition to information about both parties, the terms of an indemnity agreement must be clearly defined. Both parties should sign the agreement after negotiating their contractual obligations and reviewing the terms carefully. These contracts typically do not require a witness or notary, but these can be used for an extensive HHA if desired.
In today’s litigation-heavy business environment, more and more companies use these agreements and clauses to protect themselves from lengthy and often financially devastating litigation. This document or clause within a document that releases one or both parties from any potential legal claims for bodily injury or property damage. This includes any injury, damage or other claim that might arise during or after the transaction or activity between Party A and Party B. Party A is the company using the HHA (which can be easily drafted using a sample hold harmless agreement). Party B is the person or business signing and agreeing to waive liability in some way.
The agreement may be used alone or as part of a more involved liability waiver. This document is a form of legal contract.
It is important to note, however, that the agreement does not make a business invincible, nor does it free them from standard, reasonable legal responsibilities. These responsibilities include following local governing law to ensure an environment that is as safe as possible. If they do not follow these procedural and safety requirements, an HHA will likely offer little or no protection to Party A as the creator of the form.
For instance, sports clubs and gyms often include hold harmless clauses in their membership contracts. These clauses help protect them from litigation and personal injury claims that arise from the action or actions of a member, such as a runner who trips and falls off of a treadmill. Individuals have, and will likely continue to, sue businesses for injuries that weren’t the fault of the business; and, sometimes, they win a settlement that can cripple or destroy the business. This is why a hold harmless template is so important for a business to use. It provides some measure of protection from malicious litigation.
Again, though, it’s important to note that it does not free businesses from basic, common sense responsibilities. If the business has knowledge of a faulty piece of machinery or faulty equipment and does not use a sign to notify others about it not properly working or fix it in a timely manner, they may be liable for any injury resulting from its use. The same can be said for poor maintenance habits. If the previously mentioned runner falls off the treadmill and breaks their leg because of a faulty mechanism that the business knew about or should have known about, it is possible that no authorization of indemnification would mitigate their liability.
HHAs are simple to draft. Once a hold harmless template is written for a business, it generally only requires the participant’s signature to become legally binding. The participant would be Party B.
Create a Hold Harmless Agreement in minutes with our professional document builder.
