What Every Business in Los Angeles Should Know About Hold Harmless Agreements
Every business in Los Angeles should familiarize itself with hold harmless agreements2 min read
Every business in Los Angeles should familiarize itself with hold harmless agreements. These important legal documents are used to protect organizations from certain types of liability and can be essential components of a company’s risk management strategy. Hold harmless agreements require that one party (indemnitor) absorbs the legal liability for certain actions performed by another party (indemnitee). In this article, we’ll explain what hold harmless agreements are, when businesses should use them, and how to find a business lawyer in Los Angeles to help craft the agreement.
What Is a Hold Harmless Agreement?
A hold harmless agreement is a type of legal document used to protect an indemnitor—typically, but not always, a company—from certain types of liability associated with the actions of another party. The other party is typically known as the indemnitee and usually agrees to accept responsibility for any costs associated with all claims, losses, damages, or liabilities related to their actions.
The specific language of a hold harmless agreement will vary depending on the parties involved and the particular circumstances. For example, if a company is hiring a contractor to do work on its premises, the hold harmless agreement might specify that the contractor is responsible for any bodily injury or property damage associated with the job. In such an example, the company (indemnitor) would be making itself immune from potential lawsuits due to the contractor’s (indemnitee’s) actions.
When Should Businesses Use Hold Harmless Agreements?
Hold harmless agreements can be used in a variety of business situations, including:
When signing service or contractor agreements
When engaging in business activities with other companies
When entering into long-term contracts with partners
When doing business inside or outside of Los Angeles
When creating or joining a joint venture
When issuing or participating in a third-party guarantee
Business owners should think of a hold harmless agreement as a preventative measure. It will not prevent lawsuits from happening, but when properly crafted, it can provide important protection in the event of legal action.
How to Find a Business Lawyer in Los Angeles
Given the complexity of drafting and negotiating a hold harmless agreement, it’s vital to work with an experienced business lawyer. Finding a lawyer in Los Angeles who understands the local regulations and has the skills to craft a strong agreement can be a challenge.
Thankfully, there’s a solution. UpCounsel is an online marketplace that provides companies access to experienced business lawyers who understand the Los Angeles business landscape. UpCounsel’s network of business lawyers have an average of 14 years of legal experience and can help your business through any legal challenge while maintaining a strict standard of quality and affordability.
Why not make your next legal issue a breeze with UpCounsel?