What is Hold Harmless Agreement Drafting?
A hold harmless agreement is a legal document that states one party won’t hold the other party liable should losses or damage occur during the agreement term.
There are various instances in which you might require a hold harmless agreement, such as if you own a ziplining company or you’re a homeowner hiring a professional to conduct property repairs. A hold harmless agreement protects you against certain consequences such as damages, injuries, and financial expenses.
If you need to draft a hold harmless agreement, read the rest of this article to explore what it should contain, how to draft it for clarity, and how a lawyer can help you with the hold harmless agreement drafting process.
What Information Does a Hold Harmless Agreement Contain?
A hold harmless agreement usually contains the following key terms:
- Date. This specifies when the hold harmless agreement starts and ends.
- Description. This provides a detailed description of the service or activity that is considered risky.
- Scope. This specifies the claims that are covered by the hold harmless agreement.
- Insurance. The type of insurance coverage and policy limits should be included.
- Termination. If a party wants to end the agreement, they need to give notice.
- Governing law. The agreement should clarify what state laws govern its terms, which is especially important in the case of disputes.
- Signatures. Both parties will have to sign the agreement. Sometimes a witness and notary are also required, depending on the state.
What are Tips for Drafting a Hold Harmless Agreement?
Now that you know what key terms to include in a hold harmless agreement, there are some tips to bear in mind during the contract drafting process. Here’s a rundown of some of the most important ones.
Discuss Negligence
It’s important to clarify in your hold harmless agreement if you’ll be liable for the other party’s negligence. It’s common for many states to prohibit gross negligence or willful misconduct, so know what your state laws state to ensure you operate within the law.
Avoid Vague or Confusing Wording
If you use vague or generic phrases in your hold harmless agreement, you leave its terms open to interpretation. This can cause disputes or lack enforceability in court. Make sure that your harmless agreement is clear and specific.
Negotiate with the Other Party
It’s essential to negotiate terms of the hold harmless agreement with the other party, or courts will doubt its validity. The contract must be balanced and fair to show that both parties have consented to its terms.
Avoid Broad Clauses
A common mistake when drafting a hold harmless agreement is to include all the possible scenarios that could occur. While this might seem thorough, it can actually result in a lack of enforceability. It’s better to concentrate on what is necessary in the agreement.
Include What’s Not Covered
To protect your interests, the hold harmless agreement should state any applicable exclusions or limitations. It’s not enough to assume that they’re not included if they’re not mentioned. By being as clear as possible, all parties involved in the agreement will understand their duties and liabilities.
Do You Need a Lawyer for Hold Harmless Agreement Drafting?
It’s advisable to work with a lawyer to draft your hold harmless agreement, especially if you’ve never drafted one before or you don’t have a legal background. Without the correct wording and information, a hold harmless agreement could result in financial or legal risks.
A qualified lawyer can help you in various ways during the drafting of a hold harmless agreement, such as by:
- Assessing your specific level of risk so you know if a hold harmless agreement is right for your situation or project.
- Identifying risks and liabilities you might not have considered so that the agreement provides sufficient protection.
- Drafting the agreement with clear, specific terms. This prevents vague wording that can result in disputes.
- Customizing the hold harmless agreement so that it’s thorough and includes the appropriate provisions.
- Aligning the agreement terms with all local, state, and other laws to make it legally valid and enforceable.
- Negotiating the agreement with the other party on your behalf for more favorable terms.
- Explaining all your legal consequences so that you can make informed decisions.
- Reviewing an agreement you’ve previously drafted to give you peace of mind that it’s comprehensive and balanced.
Where to Find a Lawyer for Hold Harmless Agreement Drafting
It’s not always easy to find a lawyer to draft a hold harmless agreement or other contract you require. While you might think you have to get lawyer recommendations from loved ones or cold-call traditional law firms, you can make use of online legal platforms that connect you with qualified, experienced lawyers.
On ContractsCounsel, one of the largest online legal marketplaces where you can gain access to a network of vetted lawyers, you can find a lawyer from the comfort of your home.
Here are the simple steps to follow to ask a qualified lawyer on the platform to draft your hold harmless agreement.
1. Go to the ContractsCounsel marketplace, where you can post your project for free. Include a few details of the project, such as why you need a hold harmless agreement.
2. Wait to receive bids. You’ll receive multiple bids from lawyers directly on the platform who can assist you.
3. Review the lawyers’ profiles. Once you receive the lawyer bids, you should review the lawyers' profiles. There’s lots of info on the platform to help you choose the best lawyer, such as their location, client ratings, years of experience, and field of expertise.
4. Connect with a lawyer you think is best suited to your requirements and hire them to draft your hold harmless agreement. You can also request that a lawyer reviews your contract if you’ve already written it.
