Hold Harmless and Indemnification Agreements, can be critical parts of any
contract. These agreements are drafted to shift the assumption of liability from
one party to another.
The typical parties to an indemnification relationship are the Indemnitor and
Indemnitee. The indemnitor typically assumes any liability or the obligation to
hold the indemnitee harmless from liability.
Hold harmless agreements are often classified as broad form, intermediate form
and limited form. The most common type of hold harmless agreement is the
However, for your information, a brief description of the three
types of hold harmless agreements follows:
Limited Form Hold Harmless Agreements
This type of hold harmless agreement is sometimes referred to as a comparative
fault indemnification agreement. As its name implies, this agreement obligates
the indemnitor only to the extent of his or her own fault.
Intermediate Form Hold Harmless Agreements
In this situation, the indemnitor assumes all liabilities of the indemnitee relating
to the subject matter of the agreement, except where the injury or damage is
caused by the indemnitee’s sole negligence. Any amount of fault on the part
of the indemnitor under an intermediate hold harmless agreement obligates
the indemnitor to indemnify the indemnitee for the total amount of damages.
For example, whether the indemnitor is 10 percent or 90 percent at fault, it
nevertheless must indemnify the indemnitee for 100 percent of the damages.
The only instance in which the indemnitor is relieved of the contractual
obligation to indemnify is when the loss is due solely to the fault of the
Broad Form Hold Harmless Agreements
Broad form hold harmless agreements require complete indemnification of the
indemnitee for all occurrences arising out of the indemnitor’s operations without
regard to fault.
If you are not protecting your business with hold harmless agreements, you are playing with fire. If you would like a copy of a limited form hold harmless agreement send me an email or call the office.
To Your Success!
Rod Hanks has owned and operated The Hanks Group for 14 years, a diversified insurance agency that focuses on the unique insurance needs of contractors. Although our main focus is contractors insurance, we do offer health, life, and personal lines insurance. Rod can be reached at 214-275-8372 or firstname.lastname@example.org