Hold-harmless clauses have pitfalls

ITIC has warned so-called ‘hold harmless’ clauses in many of the contracts entered into by its members may contain pitfalls which could prejudice their rights. A mutual hold-harmless indemnity clause should provide that each party to the contract agrees to take responsibility for - and to indemnify the other against – injury and loss to its own personnel and property and its own consequential losses, even if the accident and related losses are caused by negligence.