Questions & Answers
Contract Clauses About Risk and Liability
Explore common questions that members have asked Rocket Copilot and our Legal Pros about risk and liability clauses. Get answers to protect your business and stay Confidently Legal®.
Get answers to your questions about risk and liability contract clauses

Liability Clauses
Liability clauses define who is responsible if something goes wrong under a contract. These questions explain how liability is assigned and what kinds of risks each party may be expected to cover.
- What liability clauses should I include in a business contract?
- Can a contract waive liability for removing equipment or fixtures at a client's request?
- How can I protect my business from client claims I didn't cause?
- Can I write a contract that protects my business from all liability claims?
- How do I write a liability disclaimer for member behavior on my website?
- What is a cross liability clause in a contract?

Limitation of Liability Clauses
Limitation of liability clauses cap how much one party can be held responsible for damages. These questions explore how limits are set, what they apply to, and when they may not be enforceable.
- Is this limitation of liability clause strong enough to protect me?
- Is it reasonable for a client to reject a liability cap tied to the contract value?
- Which contract controls if my liability clause conflicts with their NDA?
- What is a limitation of liability clause in a contract?
- Are limitation of liability clauses enforceable​?
- What are the consequences of not including the limited liability clause in the Independent Contractor Agreement with my clients?
- Should I agree to a limitation of liability clause?
- What types of damages are usually excluded in a limitation of liability clause?

Indemnity and Indemnification Clauses
Indemnity clauses require one party to cover certain losses, damages, or legal claims brought against the other. These questions explain how indemnification works and when one party must step in to protect the other.
- Who does an indemnity clause protect in a contract?
- What is an indemnification clause in a contract?
- Are indemnification clauses enforceable in contracts?
- Are indemnification clauses necessary? What happens if a contract does not include an indemnification clause?
- Does mutual indemnification prevent lawsuits between parties?
- Does an indemnification clause survive termination of a contract?

Hold Harmless Clauses
Hold harmless clauses are designed to protect one party from being held liable for certain risks or claims. These questions help clarify how they work, how they differ from indemnity, and when they’re typically used.
- Does a hold harmless clause prevent me from being sued?
- Should I include a hold harmless clause in my contract?
- Do hold harmless clauses need to be mutual?
- What is a hold harmless clause in simple terms?
- Are hold harmless clauses always enforceable?
- How do I add a hold harmless clause to a contract?
- What's the difference between indemnity and a hold harmless clause?

Waiver of Liability Clauses
Waiver of liability clauses involve one party giving up the right to hold the other responsible for certain harms. These questions explain when waivers are used and what limits they may have.
- Can a customer still sue my business after signing a liability waiver?
- What protection does a liability waiver actually give?
- Does a liability waiver cover negligence?
- Is a release of liability the same as an exculpatory clause?
- How do I create a release of liability clause?
- What makes a liability waiver invalid?

Assumption of Risk Clauses
Assumption of risk clauses acknowledge that one party understands and accepts certain risks involved in an activity or agreement. These questions explore how risk acceptance affects liability and legal responsibility.
- What is an assumption of risk clause in a contract?
- What does an assumption of risk clause actually cover?
- Are assumption of risk clauses enforceable in contracts?
- Can an assumption of risk clause protect against negligence claims?
- Does an assumption of risk clause waive your right to sue?
- Do I need an assumption of risk clause in my business contracts?
- What is the difference between an assumption of risk clause and a liability waiver?

Insurance Requirement Clauses
Insurance requirement clauses specify what types of insurance coverage must be maintained during a contract. These questions explain how insurance supports risk management and what coverage terms are commonly required.

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Disclosures
- 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.