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California's long-standing anti-indemnity laws prohibit a public agency from forcing a contractor to indemnify the agency for its "active negligence." That prohibition has now been expanded in new and amended anti-indemnity statutes, which protect subcontractors and suppliers of goods and services (not just contractors ...
Generally, hold harmless agreements are enforceable in California if they are specific. They protect one party to an agreement from the other party's demands for compensation. In California, they must include specific and explicit language regarding which risks are covered.
In most cases, a hold harmless agreement is binding and legally enforceable. Business owners should include specific language in their contract, stipulating a release of liability from lawsuits that occur as a result of negligence.
Hold Harmless Agreement: An agreement whereby the first party (the indemnitor) agrees to hold a second party (the indemnitee) harmless from tort liability arising out of the indemnitor's negligent act or omission.
California's long-standing anti-indemnity laws prohibit a public agency from forcing a contractor to indemnify the agency for its "active negligence." That prohibition has now been expanded in new and amended anti-indemnity statutes, which protect subcontractors and suppliers of goods and services (not just contractors ...
While generally, indemnity contracts for negligence are enforceable, the strict rule of construction in California is that indemnity for active negligence requires explicit language in the clause that negligence of the indemnitee is to be included.
By statute, you cannot have another party indemnify you against damages that result your sole negligent or willful acts. If such a clause is in a contract it is void. Thus under California law, the person seeking indemnity from the other party must have some degree of fault for the harm that results in the liability.
In order from most to least protective, the three types of indemnity agreements are broad form, intermediate form, and limited form. In the explanations below, we will refer to parties as either indemnitors or indemnitees. The indemnitor is the party waiving their right to hold the other party responsible for damages.