Does indemnify and hold harmless the same? What is a hold harmless agreement? If drafted correctly, a “hold harmless” clause has the effect of having the holder avoid liability for certain damages or claims as set out in an agreement. Typically, a contractor would be agreeing to hold the homeowner harmless from liability , or a subcontractor would hold the GC harmless. In either case, if a claim is made, the one in whose favor the hold harmless is written gets to transfer the claim to the one who agreed to hold them harmless.

An indemnity provision , which usually includes a requirement to hold harmless and defend another party, is included in nearly all construction contracts. Generally speaking, the upstream party (a general contractor or owner for example) is attempting to shift risk to a downstream party (the general contractor or a subcontractor). The old adage of “don’t sign anything you don’t understand” can be difficult advice to follow when contracts have confusing language such as “to indemnify, hold harmless and defend.
Understanding what this language means will help you decide if the contract is something you want to sign. Many professionals claim that indemnify protects against losses, while “ hold harmless” protects against liabilities and losses. A hold harmless clause is a statement in a contract that states that an organization or individual will not be held liable for any injuries or damages caused to the other party.


