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March 22 2016


Hold Harmless Agreements - The basic principles

Hold Harmless Template
Hold Harmless Template

Hold harmless agreements and Indemnity agreements can be be extremely tricky in your small company insurance program. One of several key things to remember in signing any agreement is the fact that in the United States you cannot sign away your rights. These hold harmless agreements and indemnity agreements will limit you skill for compensation and recourse. It will be in your best interests whenever you negotiate your contracts which you have mutually beneficial hold harmless agreements. In so doing, you will not arbitrarily provide coverage to your vendors and/or clients for his or her acts of negligence.

Haphazardly signing hold harmless and indemnity agreements without staring at the ramifications can cost you lots of money in the long run. By signing these types of agreements you can extend your coverage from a policy to other parties. Thus any claims which might be paid and any and many types of claims expenses which are incurred will be tallied to your loss ratio on the policy even though you have no negligence whatsoever. Which means you could be paying for this agreement via claim payments yourself policy for many years to come. The insurance companies typically will surcharge your plan for a minimum of three years so that you can recoup their losses.

Indemnify and Hold Harmless

Hold Harmless Agreements have become common and are throughout almost all contracts. Correctly ascertaining whether your insurance coverage will respond to whatever you have agreed to on paper and the hidden costs of claims that can affect your premiums are common items to consider in your overall enterprise risk management.

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