how a hold harmless clause works
businesses that offer high risk activities such as skydiving sessions commonly use a hold harmless clause although a hold harmless clause is not an absolute protection from liability it indicates that the customer has acknowledged certain risks and agreed to take them this agreement if often in the form of a letter or a waiver that the participant must sign the hold harmless agreement may be unilateral or reciprocal with a unilateral agreement one party to the contract agrees not to hold the other party liable for injuries or damages incurred with a reciprocal agreement both parties to the contract agree to hold the other harmless a hold harmless clause does not always protect a company against lawsuit or liability the agreement must specifically state that the signee is waiving their right to sue for negligence 1