Hold Harmless Agreements - Basic principles

Hold Harmless Template

Hold harmless agreements and Indemnity agreements can be quite tricky in your small company insurance program. One of the key things to remember in signing any agreement is always that in the United States you cannot sign away your rights. These hold harmless agreements and indemnity agreements will limit what you can do for compensation and recourse. It would be in your best interests once you negotiate your contracts that you have mutually beneficial hold harmless agreements. By doing so, you will not arbitrarily provide coverage on your vendors and/or clients for his or her acts of negligence.

Haphazardly signing hold harmless and indemnity agreements without studying the ramifications can cost you lots of money in the long run. By signing these kinds of agreements you can extend your coverage from a policy to other parties. Thus any claims that are paid and any and all claims expenses which are incurred will be tallied to your loss ratio in your policy even though you haven't any negligence whatsoever. Which means you could be paying for this agreement via claim payments by yourself policy for many years to come. The insurance coverage companies typically will surcharge your insurance policy for a minimum of three years so that you can recoup their losses.

Indemnify and Hold Harmless

Hold Harmless Agreements have become common and are throughout almost all contracts. Correctly ascertaining whether your insurance plan will respond to what you have agreed to in some recoverable format and the hidden costs of claims that may affect your premiums are common items to consider in your overall enterprise risk management.