A hold harmless agreement is a contract provision in which one party agrees to take on certain legal liabilities of the other. IRMI defines it as "a provision in a contract that requires one contracting party to respond to certain legal liabilities of the other party," and describes limited, intermediate and broad forms.
Why It Matters for Snow Contractors
Snow removal contracts often include hold harmless language in favour of the property owner or manager. The wording decides how much of the owner's liability you are agreeing to carry. A limited form might cover only claims caused by your own work; a broad form can reach further.
Your insurance does not automatically match whatever you sign. Whether and how your general liability policy responds to liability you assumed by contract depends on its wording. That is why it is worth showing a new contract to a broker, and a lawyer if the language is unusual, before you sign.
Example
A property manager's contract says you will hold the manager harmless for "any and all claims arising from snow or ice on the premises." A visitor falls in an area that was outside your scope. Depending on how a court reads the clause, you could be asked to respond anyway.
Related Terms and Guides
- Indemnity clause
- Additional insured
- Snow removal contracts and insurance
- Snow removal contract template
General information only, not insurance or legal advice. Policy wordings differ; a licensed broker can explain how your own policy and contracts treat this.
Further reading: Insurance Bureau of Canada: Insurance glossary; Insurance Bureau of Canada: Types of business insurance coverage
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Frequently Asked Questions
Is a hold harmless agreement the same as an indemnity clause?
They are closely related and often used together. IRMI describes contractual indemnity as commonly created through hold harmless agreements.
Can I negotiate a hold harmless clause?
Many contractors do ask for changes. A lawyer can advise on the wording.