Hold Harmless Agreement
Definition:
A contract where one party agrees not to hold another responsible for certain damages or losses.
Explanation:
In insurance, hold harmless agreements are often signed with contractors, landlords, or vendors to shift liability.
Example:
If you hire a roofer, their contract may include a hold harmless clause protecting them from liability for certain risks.
Why it matters:
This term affects how claims are handled and what payout a homeowner may receive.