hold harmless
Real Estate Law

What Is A Hold Harmless Agreement And What Are Its Types?    

| May 4, 2021

In the construction contracts, the hold harmless agreement takes place. The main objective of these contracts is to release one party from the liabilities and the damage caused by the other party in the contract. The hold harmless agreement occurs when the two parties in the construction contract want to settle the disputes mutually. 

There are certain circumstances where these contacts will take place. In this type of contract, the rights of both parties must be appropriately preserved. The clause must not ignore any claims for loss, damage, expenses, and damage of any kind in the contract. The correct choices from your end can help you to achieve your objectives. 

Different Types Of  Hold Harmless Agreement 

Types Of  Hold HarmlessThere are three different types of hold harmless clauses. Let’s explore the facts that can help you to achieve the goals in the best possible manner. In the following basic forms, the hold harmless agreement is divided.    

1. Broad Form   

In this form of agreement, the subcontractor is being insured considering all the aspects of the damage due to negligence, accidents, general contractor negligence, and the combined negligence of the subcontractor and contractor. 

The basic objective of this agreement is to safeguard the interest of the contractor and the subcontractor. In this form of hold harmless agreement, the parties or the main contractor is to what some extent is liable to pay the compensation.

Another important aspect of this agreement is that it validates that if the subcontractor’s liability to his own damage of the body can be met with the help of the contractor finance of the insurance policy if the severity of the damage is more. Ensure that you have not forbidden the terms of the contract from your end. 

2. Intermediate Form   

In this form of the agreement, a sub-contractor assumes that the liability of the accidents and negligence falls on the sub-contractor. The main contractor is not responsible for the damage of the sub-contractor in any way.   

He will not be held responsible for such a scenario. You need to understand that if you want to develop your business especially the real estate business; you need to safeguard your rights. In this form of hold harmless agreement, the entire liability is of the sub-contractor, not the contractor.   

This agreement is not dependent on the fact that whether the subcontractor has committed the fault or not. The only dominant matter here is who is solely responsible for such an accident and which person acted negligently. You need to understand that if you want to get the compensation, you must prove that the contractor was responsible for the damage, not the sub-contractor. 

3. Limited Form   

In this form of hold harmless agreement the subcontractor will be held responsible solely for the accident and the loss partially or in a limited manner. The portion of the negligence he is liable to pay the amount for which he is solely responsible. Only to the proportional part of the liability, the subcontractor is responsible. 

The limited form ensures that the other party will be involved to part with the other portion of the amount for which the subcontractor is not liable to pay. It is another harmless agreement where the other party and the subcontractor will be held liable for the damage to the limited amount. 

You must go through the claims in proper order to get the maximum benefit from them. You cannot make the wrong decision here. The terms of the contract are clear and transparent. You need to know the rule properly to get the benefits of it in a proper manner. The correct choices can help you to achieve your settlement goals properly in the right way. 

Also Read: Property Law: Everything You Should Know About It In 2021

Important Information You Must Know About Hold Harmless Agreement   

There is certain necessary information that you must know about the hold harness agreement. Let’s find out the core information that you must know about this agreement properly. This will help you to get the things done in the right order at the right time in a proper way. Ensure that you have made the right arrangements with the help of the hold harness agreement in the right way.   

1. The Person Or The Party To Be Held Harmless  

You must register the name of the person and the people and the contract who will sign the agreement. It is one of the most crucial things that you must know about it. It will help you achieve things in the correct order at the right point in time properly. 

2. The Person Or The Party Providing Production  

You must include the name of the person who will sign the agreement to make the other party harmless in the process of the hold harmless agreement. Proper planning will help you to get things done in proper order. You must take steps to follow the procedure in the right way. 

Also Read: What Is Administrative Law 

3. The Type Of Protection Provided   

It also falls in the category of the services in case of the construction-related hold harmless agreement. You need to consider the facts correctly. Proper planning is essential here as it can help your business to grow in the right direction. 

4. A Time Frame   

It typically includes the date range that holds or coincides with the project tenure. Ensure that proper selection of the time frame you have made from your end. Proper planning is essential for your business in the right direction.    


Hence, if you get the hold harmless agreement, you need to consider facts to help you get things done correctly. It will allow you to get things done in the correct order the more you can apply the right strategy at the right point of time. Proper planning can help you to achieve your objectives in the correct order. 

Proper planning can help you to achieve your goals in the right way. So, you need to make things proper to get the compensation on time. You must not ignore the crucial facts in this regard. 

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Lucia Patterson
Lucia Patterson

Lucia Patterson is the woman behind TheLegalGuides, a blog solely focused on legal guides, tips, and advice. Lucia is passionate about Legal and blog TheLegalGuides in her free time.


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