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Question

Should I include a hold harmless clause in my contract?

I've seen hold harmless clauses in agreements, but I'm unsure if I should include one in mine. Are there specific situations where it's important or unnecessary?

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Answer

A hold harmless clause is commonly included in contracts to shift responsibility for certain risks from one party to another. It can help protect your business by making it clear who pays if something goes wrong.

It is not required in every contract, but it is a good idea particularly when one party's actions could create risk for the other.

When is a hold harmless clause important?

These clauses are especially helpful when your work could expose the other party to claims. For example, service providers often include them to cover risks tied to their work, while property owners may use them for risks tied to their space.

They are most valuable when there is a clear risk of third-party claims, injuries, or damages connected to one party's responsibilities.

When might a hold harmless clause be unnecessary or limited?

In lower-risk agreements, or where responsibilities are already clearly defined, a hold harmless clause may be less critical. Also, the clause only applies to the situations listed. If it is too broad or unclear, it may not be enforceable, and it does not eliminate all liability.

What to do next...

  1. Evaluate the risks tied to your services or activities.
  2. Decide which party should cover specific risks.
  3. Use clear, specific language in the clause.
  4. Make sure both sides understand and agree to it.

What to consider in your specific situation

While hold harmless clauses are common, whether you need one depends on your business and risk level.

  • The type of services or activities involved.
  • The likelihood of third-party claims or injuries.
  • The exact wording and scope of the clause.
  • Whether the clause is one-sided or mutual.
  • Local laws that affect enforceability.
  • The financial impact of potential claims.

Clear risk allocation can help prevent disputes and protect your business. Since every situation is different, consider more information through Rocket Copilot, a Legal Pro, or a legal document review to move forward with confidence.

Published on 04/20/2026Written by Laura BojartReviewed by Legal Pros

At Rocket Lawyer, we follow a rigorous editorial policy to ensure every article is helpful, clear, and as accurate and up-to-date as possible. This page was created, edited and reviewed by trained editorial staff who specialize in translating complex legal topics into plain language, then reviewed by experienced Legal Pros—licensed attorneys and paralegals—to ensure legal accuracy.

Please note: This page offers general legal information, but not legal advice tailored for your specific legal situation. Rocket Lawyer Incorporated isn't a law firm or a substitute for one. For further information on this topic, you can Ask a Legal Pro.

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Disclosures

  1. This page offers general legal information, not legal advice tailored for your specific legal situation. Rocket Lawyer Incorporated isn't a law firm or a substitute for one. For further information on this topic, you can Ask a Legal Pro.