Know about Hold Harmless Agreement
Preparing for the hold harmless agreement is very important when you are working in a construction area. If you happen to work in construction, real estate, or sports world, you have to know why making this agreement is so important. Therefore, in this article, we will be giving you all of the information related to the hold harmless agreement.
The definition of Hold Harmless Agreement
Hold harmless agreement is a kind of agreement which will secure one party from liability of the other parties’ damages or injuries. Usually, the agreement is used in the construction and real estate areas. The agreement will be provided for contractors, builders, and any other related professionals which have risks in injuries or damages. To put it bluntly, this agreement exists so that one party will not be blamed if anything happens to the professionals. The agreement also has some provisions which will minimize the existence of litigation and will allow the workers or the subcontractor to claim their indemnity if any of them are injured.
Types of Hold Harmless Agreement
There are currently three types of template.
- Broad Form
The first one is the broad form. This kind of form is used to secure both the contractor and subcontractor from accidents, injuries, damages, or negligence. Both the contractor and subcontractor will be secured from all of the possible liability. However, this type of agreement is prohibited by a lot of jurisdictions. If the subcontractor still wants to use this form, then they should add an insurance policy.
- Intermediate Form
The next hold harmless agreement example is the intermediate form. In here, the subcontractor will be held for liability for accidents, injuries, and negligence. Commonly used, this agreement form will see who is responsible for the action and who is responsible for the negligence. So, whether it is the contractor or the subcontractor, they will be held for liabilities.
- Limited Form
This last agreement type is used when the subcontractor is responsible for the accident or injuries but only for their part. Meaning, the subcontractor will be responsible for their own negligence and will limit the liability of them.
Those are the reason why the agreement is important and the types of the agreement. By making this hold harmless agreement template, you and the other parties will be secured and will bring benefit to you.