Hold Harmless Agreements Part 1
In the construction industry, a hold harmless agreement, also known as an indemnity agreement, can be a valuable clause in a contract. An indemnity is a type of insurance that is provided by an indemnitor to an indemnitee for protection in the event of unanticipated liabilities in a construction project. Since drafting the right contract is extremely important, our knowledgeable Brandon construction attorneys are here to assist you if you need this type of agreement drafted into your contract. Visit Part 2 to read the rest of the article.
Hold Harmless Agreements Protect
When this agreement is used in contracts it transfers certain risks between contractual parties, the indemnitor who is liable for unforeseeable liabilities and the indemnitee who is held harmless. These agreements can be between subcontractors and contractors, owners and contractors, and other parties who enter into contractual agreements. The agreement can absolve responsibility for any accidents or losses caused during a project and can lessen the likelihood a litigation.
Types of Agreements
Hold harmless agreements are categorized into three types: Broad Form, Intermediate Form, or Limited Form.
With a Broad Form agreement, the indemnitor will agree to hold harmless the indemnitor for all damages, losses, or injuries that occur during a construction project. A Broad Form provision is not always recommended because the language used can be broad causing one party to carry more liability than would usually be covered. Additionally, it is usually unenforceable in Florida because an indemnitee’s negligence is taken into account instead of being overlooked.
Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.