What is the difference between indemnification and hold harmless clauses?

What is the difference between indemnification and hold harmless clauses?

Indemnification refers to a party's obligation to compensate another for losses or damages, while hold harmless means one party agrees not to hold the other responsible for certain liabilities.

Can you give me an example of each?

Sure! An indemnification clause might state that if one party is sued due to the actions of another, the second party will cover legal costs. A hold harmless clause might say that one party won't hold the other liable for any injuries that occur on their property.

Are these clauses commonly used in contracts?

Yes, both clauses are commonly used in contracts, especially in agreements related to construction, leases, and service contracts to manage risk.

What should I consider when drafting these clauses?

When drafting these clauses, consider the scope of liability, the specific risks involved, and ensure clarity to avoid disputes.