Term Of The Day – Broad Form Hold Harmless Clause
This is the most dangerous of the three types of Hold Harmless agreements. Broad form hold harmless clause means the subcontractor applying for an insurance policy:
- Assumes all related liability for accidents
- Its own negligence
- General contractor negligence
- Combined negligence between contractor and subcontractor
This type of broad agreement is limited or forbidden is certain states as it is fertile ground for multiple lawsuits. Certain subcontractors must take out an additional insurance policy to cover its liability under this type of clause.
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