Hold Harmless Agreement Cost

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What does a hold harmless agreement cost? This is a question many businesses who need protection from liability may ask. So let’s explore this question and review some general information about hold harmless agreements.

How Much Does a Hold Harmless Agreement Cost?

A hold harmless agreement, sometimes called an indemnity agreement or release of liability is a legally binding agreement between two parties. This kind of agreement absolves one or both parties of legal liability for any damages or injuries.

Hold harmless agreements are most commonly used by businesses that offer a dangerous service to customers or can cause damage. When the customer signs a hold harmless agreement, they recognize that the service is unsafe. However, the customer also agrees that they will not hold the business responsible should any injuries or damages be incurred.

Hold harmless agreements can either be unilateral or reciprocal. In a unilateral agreement, one party agrees not to hold the other party liable for injuries or damages. When the agreement is reciprocal, both parties agree to absolve any liability.

A hold harmless agreement can decide between being protected from liability or being dragged into a costly lawsuit. For this reason, this agreement needs to be drafted correctly. Courts tend to look down on hold harmless agreements, and any mistakes or missing clauses could leave the business open to being sued.

Business owners who need a hold harmless agreement often hire a contract lawyer to draft the document. Based on ContractsCounsel’s marketplace data, the average cost of a project involving a hold harmless agreement is $495.

What’s Typically Included in a Hold Harmless?

Hold harmless agreements will contain different clauses depending on the type of agreement and the type of activity. For example, a hold harmless agreement for a lease agreement will differ from a hold harmless agreement for a skydiving company.

Although they may differ, most hold harmless agreements will contain the following key elements:

  • Names and addresses of both parties and specifically which party is being protected and which party acknowledges and accepts the risk
  • The date of the agreement
  • The location of the activity
  • A full description of the activity covered by the agreement
  • A description of the risks associated with the activity
  • The date the agreement will begin and the duration of the agreement
  • Signatures of all parties

Depending on your business and the activity being covered, your hold harmless agreement may need additional clauses. Always consult with a knowledgeable attorney to ensure your agreement is complete and legally binding.

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Types of Hold Harmless Agreements

The three most common types of hold harmless agreements are general, property use, and services.

  • General. A general hold harmless agreement protects one party from liability during a specific activity. The document will need to specify the activity and the risks. For example, a general hold harmless agreement may be in place if you go on a charter boat for a snorkeling trip. This agreement will absolve the boat charter company for any liability for any injuries or damages that may occur.
  • Property Use. It is prevalent for a lease agreement to include a hold harmless provision. This will protect the property owner if the renter or any guests are injured on the property.
  • Services. A service hold harmless agreement protects a party while providing a service.

Who Needs a Hold Harmless Agreement?

Any business that facilitates a high-risk activity or any business that provides a service that could cause damage should have a hold harmless agreement. This agreement is vital in protecting the business from lawsuits if a customer suffers an injury or damages.

Even businesses that don’t provide high-risk services should consider hold harmless agreements in their business practice. For example, an IT consultant may want to execute a hold harmless agreement to protect themselves from any damages that may arise because of their work.

Examples of Hold Harmless Agreement Projects

Hold Harmless Agreement Drafting Service

Hold harmless agreements are important documents and must be drafted correctly. Therefore, it is recommended that any business in need of a hold harmless agreement contacts an experienced lawyer for drafting services.

Having a lawyer draft your hold harmless contract will ensure that the agreement includes all necessary information. It will also ensure that the contract adheres to state and local laws, is legally binding, and most importantly, protects your company from liability.

When you hire an attorney to draft your contract, you will typically meet with the lawyer to discuss your business and the services you provide. The lawyer will then prepare a customized hold harmless agreement to use in your day-to-day business operations.

Hold Harmless Agreement Review Service

It is relatively easy to find a hold harmless agreement template online. While this may work for some businesses, hiring a lawyer to review the contract before using it with customers is still recommended.

Every state has different laws surrounding hold harmless agreements and contracts. Your local attorney will be familiar with these laws and ensure that your hold harmless agreement adheres to all laws and will be credible in court.

Drafting Hold Harmless Agreement Costs

Hiring an attorney to draft a hold harmless agreement will come with costs. However, the lawyer will be using their time and expertise to provide valuable legal services.

ContractsCounsel’s marketplace data shows the average hold harmless agreement drafting costs are $492 across all states and industries.

Hold Harmless Agreement Review Costs

Review services will also incur legal fees. Like drafting services, review services take a licensed attorney's time and legal expertise.

According to ContractsCounsel’s marketplace data, the average hold harmless agreement review costs are $500 across all states and industries.

How Do Lawyers Charge for Hold Harmless Agreements?

Hourly Rates for Hold Harmless Agreements

Many lawyers who specialize in contracts bill their time using an hourly fee structure. The lawyer will inform the client of their hourly rate, and if the client agrees to pay that rate for services, the lawyer will bill the client for all hours spent working on the project or case.

The downside of hourly rates for clients is that they will not know the cost of legal fees until after the project is complete. This can leave some clients wondering how much they will spend on their projects.

ContractsCounsel’s marketplace data shows the average hourly rate for a hold harmless agreement lawyer ranges from $250 - $350 per hour.

Flat Fee Rates for Hold Harmless Agreements

When a lawyer uses a flat fee billing structure, rather than charging hourly, they quote the client a single fee for the entire project's cost. An experienced lawyer can estimate how much time a task will take and usually calculates the flat rate based on their hourly rate.

The benefit of flat fee billing is that the client knows the total cost of their legal project before hiring the attorney. Many lawyers require flat fee rates to be paid upfront before beginning work.

According to ContractsCounsel’s marketplace data, the average flat fee rate for a hold harmless agreement costs is $495.

Get Help with a Hold Harmless Agreement

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