Hold Harmless Clause

What is a 'Hold Harmless Clause'

A hold harmless clause is a statement in a legal contract stating that an individual or organization is not liable for any injuries or damages caused to the individual signing the contract. An individual may be asked to sign a hold harmless agreement when undertaking an activity that involves risk for which the enabling entity does not want to be legally or financially responsible.

Also known as hold harmless provision.

BREAKING DOWN 'Hold Harmless Clause'

For example, a sports club may include a hold harmless clause in its contract to prevent its members from suing if they are injured in the course of participating in a tennis match. In this example, the hold harmless clause would ask the participant to accept all risks associated with the activity, including the risks of injury or death.

RELATED TERMS
  1. Social Host Liability

    A legal term and area of law that deals with the liability of ...
  2. Adhesion Contract

    A contract in which one party has substantially more power than ...
  3. Breach Of Contract

    Violation of any of the agreed-upon terms and conditions of a ...
  4. Non-Contestability Clause

    1. A provision in a person's will designed to stop beneficiaries ...
  5. Severability

    A clause in a contract that allows for the terms of the contract ...
  6. Assignable Contract

    A futures contract with a provision permitting the contract holder ...
Related Articles
  1. Retirement

    Build A Wall Around Your Assets

    Learn how to protect your money from lawsuits, creditors and other judgment proceedings.
  2. Entrepreneurship

    Don't Get Sued: 5 Tips To Protect Your Small Business

    Find out what you can do to limit risk and keep your business running smoothly.
  3. Insurance

    Are You Trying To Get Sued?!

    Organizational lawsuits are commonplace these days. Knowing how to react to and (more importantly) prevent them can save your business.
  4. Home & Auto

    Cover Your Company With Liability Insurance

    Every business is susceptible to legal action. Find out how to protect yours.
  5. Home & Auto

    It's Raining Lawsuits: Do You Need An Umbrella Policy?

    This type of insurance protects your assets and future wages against lawsuits. Find out if it might benefit you.
  6. Personal Finance

    Litigation: Are Your Investments At Risk?

    Don't let company lawsuits hit you unprepared. Learn how to uncover how they might affect you.
  7. Home & Auto

    Protect Your Company From Employee Lawsuits

    Understanding employment practices liability insurance is easy, once you know the basics.
  8. Budgeting

    Low-Income Households to Get Broadband Subsidy

    The FCC's recently approved broadband subsidy for low-income households should help many people get online. Not that everyone's in favor of it.
  9. Retirement

    Laws That Help Low Income Retirement

    If you're retired – or about to be – and money is tight, look to these programs and other benefits for help should you need it.
  10. Savings

    Check for Lost Property Now – Before a State Grabs It

    You may be richer than you think. There are billions in unclaimed funds in the U.S. Here's how to determine whether some of that money is yours.
RELATED FAQS
  1. What exactly is insider trading?

    An "insider" is any person who possesses at least one of the following: 1) access to valuable non-public information about ... Read Answer >>
  2. What is the Writ of Mandamus?

    Learn how the powerful, but rarely used, court-ordered writs of mandamus can end an injustice and force someone, or a public ... Read Answer >>
  3. Are UTMA accounts escheatable?

    Find out whether your UTMA account can be escheated, the basics of escheatment and who is responsible for maintaining account ... Read Answer >>
  4. Can the IRS audit you after a refund?

    Learn how the U.S. Internal Revenue Service (IRS) can conduct a tax audit even after a taxpayer was issued a tax refund in ... Read Answer >>
  5. How does escheatment impact a company?

    Find out how escheatment can impact a company's bottom line, including what kinds of assets are at risk and what the penalties ... Read Answer >>
  6. What happens if property is wrongfully escheated?

    Find out what happens if your financial assets, such as checking and savings accounts or investment portfolios, are wrongfully ... Read Answer >>
Hot Definitions
  1. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  2. Society for Worldwide Interbank Financial Telecommunications ...

    A member-owned cooperative that provides safe and secure financial transactions for its members. Established in 1973, the ...
  3. Generally Accepted Accounting Principles - GAAP

    The common set of accounting principles, standards and procedures that companies use to compile their financial statements. ...
  4. DuPont Analysis

    A method of performance measurement that was started by the DuPont Corporation in the 1920s. With this method, assets are ...
  5. Call Option

    An agreement that gives an investor the right (but not the obligation) to buy a stock, bond, commodity, or other instrument ...
  6. Economies Of Scale

    Economies of scale is the cost advantage that arises with increased output of a product. Economies of scale arise because ...
Trading Center