by 
The Curious Bag
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When a business professional or vendor is involved in a transaction that has some degree of risk that something could go wrong, he will usually include a hold harmless agreement with the paperwork. This agreement or clause will help protect him in the event of a problem.
Identification
A hold harmless agreement is a document that is signed by two parties of a transaction. Its purpose is to release one of the parties from liability in case something goes wrong in the arrangement if that party was forced to participate or was not the direct cause of the problem.
Applications
Hold harmless agreements are commonly used by health, insurance and real estate professionals as well as contractors. These parties are commonly involved in medium- to high-risk business transactions.
Elements
The agreement includes identifying information about both parties, details about the contractual arrangement itself and a clear citation that states what the promisee (the party who is being released of responsibility) will be held harmless from in the case of an issue.
Significance
This agreement is a type of insurance policy for the promisee to prevent future lawsuits and expenses to his business.
Considerations
Some hold harmless clauses are written to be reciprocal, meaning that both parties are not responsible for claims or losses from the other regarding the arrangement.
Source:
Indemnity Agreement---Hold Harmless
Hold Harmless Agreement Example Document
Resource:
Create a Hold Harmless Agreement
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