What is Hold Harmless? Plain English Explanation
Definition
A hold harmless clause (often paired with indemnification) says that one party will not hold the other responsible for any losses, damages, or legal claims. It shifts risk from one party to the other.
Why It Matters in Contracts
A hold harmless agreement means you are absorbing the risk of something going wrong, even if the other party contributed to the problem. In extreme cases, you might be responsible for their negligence.
Real-World Example
You sign a hold harmless clause with a venue for an event. A guest slips on a wet floor the venue failed to clean. Despite the venue's negligence, the hold harmless clause means you cannot hold them responsible.
What to Watch For
- 🔴Hold harmless for the other party's own negligence
- 🔴Broad scope covering "any and all claims"
- 🔴One-sided (only you hold them harmless, not vice versa)
- 🔴No cap on the scope of claims covered
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Disclaimer: This glossary entry is for educational purposes only and does not constitute legal advice. Consult a qualified attorney for guidance on your specific situation.