What is the difference between an indemnification agreement and a hold harmless agreement in construction contracts?

An indemnification agreement and a hold harmless agreement are both terms used in construction contracts. However, while they are similar in nature, they have some important differences. An indemnification agreement is a contractual obligation whereby one party agrees to protect the other from certain losses or damages. The party that agrees to provide the protection is known as the “indemnifier.” In a construction contract, the indemnification agreement usually provides that one party will be held responsible for any damages or losses that are the result of their actions or omissions. A hold harmless agreement is a contractual obligation whereby one party agrees not to make any claims against the other for any losses or damages incurred as a result of their actions or omissions. The party that agrees not to make any claims is known as the “protected.” In a construction contract, the hold harmless agreement usually provides that any damages or losses caused by either party will be assumed by the protected party. The main difference between an indemnification agreement and a hold harmless agreement is that in an indemnification agreement, the indemnifier agrees to take responsibility for any damages or losses caused by their actions or omissions, while in a hold harmless agreement, the protected party agrees not to make any claims for any losses or damages. This means that in an indemnification agreement, the indemnifier takes responsibility for any losses or damages that result from their actions, while in a hold harmless agreement, the protected party is not held responsible at all.

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What is the difference between an indemnification agreement and a hold harmless agreement in construction contracts?

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