As a contractor, it is essential to protect yourself and your business from liability. One of the ways to do this is by using a hold harmless agreement. A hold harmless agreement is a legal document that shifts the liability from one party to another. In this case, it shifts the liability from the contractor to the client or owner. Here is a sample hold harmless agreement for contractors.
Hold Harmless Agreement
This agreement („Agreement”) is made between [Contractor Name], („Contractor”) and [Client/Owner Name], („Client/Owner”) for the purpose of shifting liability from Contractor to Client/Owner.
1. Scope of Work
Contractor agrees to perform the work described in the contract between Contractor and Client/Owner (the „Contract”) and/or any related change orders or amendments.
2. Assumption of Risk
Client/Owner understands and agrees that the work performed by Contractor may involve risks, including but not limited to personal injury or property damage. Client/Owner assumes all risks associated with Contractor`s work.
3. Hold Harmless
Client/Owner agrees to indemnify, defend, and hold harmless Contractor and its representatives from all claims, demands, causes of action, damages, liabilities, costs, and expenses, including but not limited to attorney`s fees and other legal expenses, arising out of or related to Client/Owner`s use of Contractor`s work.
Contractor shall maintain comprehensive general liability insurance, including personal injury and property damage, with limits of not less than $1,000,000 per occurrence and $2,000,000 aggregate.
Either party may terminate this Agreement at any time with written notice.
6. Governing Law
This Agreement shall be governed by and construed in accordance with the laws of the state in which the work is performed.
7. Entire Agreement
This Agreement constitutes the entire agreement between the parties and supersedes all prior negotiations, understandings, and agreements between the parties.
This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.
In conclusion, a hold harmless agreement is a crucial document for contractors to use. It provides a layer of protection against legal liability and ensures that clients and owners assume the risks associated with the work performed. This sample hold harmless agreement can be modified to fit your specific needs and requirements. Always consult with a legal professional before using any legal document.