As a professional, I have written the following article on “what does hold harmless agreement mean in insurance”.

A Hold Harmless Agreement, also known as an indemnity agreement, is a legal contract between two parties where one party agrees to indemnify or protect the other party from any potential liabilities or damages that could arise from their actions or negligence. In the context of insurance, a Hold Harmless Agreement is a provision included in an insurance policy that protects an insured party from claims made by third parties for damages or liabilities.

The Hold Harmless Agreement is a standard clause in many insurance policies, particularly in liability insurance policies, where the insured party has a higher potential for facing legal claims from third parties. The clause obligates the insurer to defend and indemnify the insured party against any claims, costs, or damages that the insured may be legally responsible for.

In essence, the Hold Harmless Agreement transfers the responsibility of legal costs from the insured party to the insurance company. If a third party files a claim against the insured party, the insurance company will step in and provide legal representation and pay for any settlements or judgments up to the policy limits. This clause gives the insured party peace of mind knowing that they are protected from any potential financial losses that could arise from legal claims.

However, it is important to note that the Hold Harmless Agreement does not provide blanket protection to the insured party. There may be limitations or exclusions to the coverage provided, or the insured party may still be responsible for deductibles or excess amounts as outlined in the policy. It is important for the insured party to carefully review their insurance policy and understand the terms and conditions of their coverage.

In summary, a Hold Harmless Agreement is a provision included in insurance policies that protects the insured party from claims made by third parties for damages or liabilities. It provides legal representation and indemnification up to policy limits, giving the insured party peace of mind knowing they are protected from potential financial losses. However, it is important to understand the terms and conditions of the policy to ensure that the Hold Harmless Agreement provides adequate protection.