What Does ‘Hold Harmless’ Actually Mean? The term “hold harmless” is a legal phrase that’s commonly used in contracts. Essentially, it’s a promise from one party to not hold the other party responsible for any liabilities, losses, or damages that may occur during the course of a contract. In essence, when two parties agree to “hold harmless”, it means that one of the parties agrees to not hold the other party accountable for any liabilities or consequences that may emerge from the agreement. Examples of Hold Harmless Agreements The term “hold harmless agreement” is often used in service agreements, leases, or other contracts. Here are a few examples: A landlord and tenant can include a “hold harmless” clause in a rental agreement. This means that if someone is injured on the property, the tenant agrees not to hold the owner liable. A service provider and their client can agree in a contract that the service provider will “hold harmless” the client from any damages caused by their services. An employer can include a “hold harmless” clause in an employment agreement, which will release the employer from any liability if the employee is injured on the job. Understanding Indemnification Clauses The term “hold harmless” is often used in conjunction with “indemnification.” Indemnification is when one party agrees to defend and reimburse the other party for certain losses if an event happens. For example, an employer can agree to indemnify an employee if they are sued for actions they took while performing the job. This means that the employer will pay the costs associated with the lawsuit, such as legal fees and settlements. How to Make Sure Your Hold Harmless Agreements Are Legally Binding In order to ensure that your “hold harmless” agreements are legally binding, you’ll need to make sure that they are in writing and signed by both parties. It’s also a good idea to have both parties have their documents reviewed by a lawyer. By doing this, you can make sure that the terms and conditions of your agreement are legally sound. The Bottom Line On Hold Harmless Hold harmless is a legal phrase that’s used in contracts to protect one party from the liabilities or consequences caused by another. When creating or reviewing a contract that has a “hold harmless” clause, it’s important to understand the full scope of the agreement, and to make sure that the document is legally binding.