What does hold harmless mean?
Hold harmless means agreeing in a contract not to hold another party responsible for certain losses, damages or claims. You see it in leases, rental forms, event sign-ups and injury settlement releases. Whether the clause holds up after someone is hurt depends on the state and the kind of contract.
Last checked November 9, 2026 · Official sources (5)
What does a hold harmless clause do? An example
Example: your apartment lease says you hold the landlord harmless for any injury on the property. Months later, a stair railing the landlord was told about breaks, and you fall and need $12,000 of care.
The landlord’s insurer points to the clause and says you gave up your claim. That is not the end of the story. Many states restrict or prohibit such clauses in residential leases, especially when they try to waive liability for the landlord’s own negligence. Whether your claim survives depends on your state’s law and the exact words, not on the insurer’s reading.
Why does a hold harmless clause matter if you were hurt?
It is often the first argument used to deny a claim, even when it may not be valid. Keep a copy of anything you signed: the lease, the gym form, the rental agreement. The exact wording decides a lot.
It also shows up after an injury, in a settlement release. There you may be asked to hold the insurer and the person who hurt you harmless against later claims, such as an unpaid medical lien. In that setting the clause is usually enforced, so confirm every lien before you sign.
When do courts limit hold harmless clauses?
| Situation | What the source says |
|---|---|
| Consumer and residential agreements | Many states restrict or prohibit them, particularly for a party’s own negligence. |
| Fraud, willful injury, violation of law | In California, contracts that exempt anyone from responsibility for these are against public policy. |
| Commercial contracts | Courts are more likely to enforce language that clearly allocates risk. |
Texas, Arizona and other states each have their own case law on these clauses. People commonly ask a lawyer whether a specific clause can be enforced.
Hold harmless vs. indemnity
In everyday contracts the two are often written together and treated as the same promise. Strictly, indemnity is a promise to pay for a loss; California defines it as a contract to save another from the legal consequence of someone’s conduct. Hold harmless, in the Wex definition, is a promise not to hold the other side liable. Some courts treat the words as identical; others give them different meanings.
Questions
Does signing a hold harmless agreement mean I cannot sue?
Not always. Many states restrict these clauses in residential leases and consumer agreements. The exact wording and your state’s law decide it.
Is hold harmless the same as a waiver?
They overlap. A waiver gives up a right; a hold harmless clause is a promise not to hold someone liable and sometimes to cover their losses.
Why is hold harmless in my settlement release?
The insurer wants protection if someone, such as a lien holder, later claims part of the settlement. Confirm all liens before you sign.
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- Legal Information Institute (Wex), checked 2026-11-09. “Hold harmless refers to a contractual provision in which one party agrees not to hold another party liable for certain losses, damages, or claims that may arise from the performance of the contract.”
- Legal Information Institute (Wex), checked 2026-11-09. “Many states restrict or prohibit such provisions in residential leases or other consumer agreements, particularly when they attempt to waive liability for a party’s own negligence.”
- Cal. Civ. Code § 1668, checked 2026-11-09. “All contracts which have for their object, directly or indirectly, to exempt any one from responsibility for his own fraud, or willful injury to the person or property of another, or violation of law, whether willful or negligent, are against the policy of the law.”
- Legal Information Institute (Wex), checked 2026-11-09. “In commercial contracts, however, courts are more likely to enforce hold harmless provisions when the language clearly allocates risk between the parties.”
- Cal. Civ. Code § 2772, checked 2026-11-09. “Indemnity is a contract by which one engages to save another from a legal consequence of the conduct of one of the parties, or of some other person.”