Jargon explained - H

  • Definition
    A contractual agreement that specifies that one party to the agreement will protect the other party and possibly others from being held liable in a given situation.

    Used when talking about Public and / or Products Liability insurance.

    The effect of a hold harmless agreement is that the two parties to the agreement agree that one party will not have a legal liability if matters described in the agreement should occur. The other party effectively assumes the whole liability.

    This is a form of contractual liability and may be excluded from Public / Products Liability insurances. When purchasing liability insurance, insurers will want to be told about any agreements that increase the clients liability including any Hold Harmless Agreement. Even if there is no specific exclusion it would be considered by the insurer to be a material fact affecting the cover needed by the client.