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Hold Harmless Agreement A provision in a contract that requires one contracting party to respond to certain legal liabilities of the other party.

A Hold Harmless (Indemnity) Agreement is used between two parties (such as an employer and employee) to establish protection from liabilities, losses, claims, or damages for one of the parties during their involvement in an activity.

Courts don't all agree whether this clause is valid because it prevents your family from suing the airline should there be an accident. If a hold harmless clause goes against the public interest, a court probably won't enforce it. Hold harmless agreements are usually ineffective if the other party was negligent.

In practice, a hold harmless and an indemnity are functionally equivalent in that both require a party to assume responsibility for losses incurred by another party in connection with certain acts and circumstances. Some argue that while an indemnity shifts losses, a hold harmless shifts both losses and liability.

For example, the term "indemnify" is used when a business hopes to protect itself against claims from a customer's error, while a hold harmless clause prevents a business from taking any responsibility for a customer's mistake.

A hold harmless clause is used to protect a party in a contract from liability for damages or losses. In signing such a clause, the other party accepts responsibility for certain risks involved in contracting for the service.

Hold Harmless Agreement vs. Essentially, one party is held free from liability in the case of an accident or damage. A waiver of subrogation obligates one party to give up the right for their insurer to subrogate, or to step in on the insured's behalf to recover any losses by suing the party at fault.