Hold harmless agreements and Indemnity agreements can be very tricky in your small enterprise insurance program. One of many key things to remember in signing any agreement is always that in the United States you cannot sign away your rights. These hold harmless agreements and indemnity agreements will limit your skill for compensation and recourse. It will be in your best interests if you negotiate your contracts that you have mutually beneficial hold harmless agreements. By doing so, you will not arbitrarily provide coverage to your vendors and/or clients for his or her acts of negligence.
Haphazardly signing hold harmless and indemnity agreements without checking ramifications can cost you lots of money in the long run. By signing these kind of agreements you can extend your coverage from the policy to other parties. Thus any claims that are paid and any and all sorts of claims expenses that are incurred will be tallied upon your loss ratio on the policy even though you have zero negligence whatsoever. So that you could be paying for this agreement via claim payments all on your own policy for many years to come. The insurance coverage companies typically will surcharge your policy for a minimum of three years in order to recoup their losses.
Hold Harmless Agreements are incredibly common and are found within almost all contracts. Correctly ascertaining whether your insurance policy will respond to what you have agreed to in some recoverable format and the hidden costs of claims which will affect your premiums are typical items to consider in your overall enterprise risk management.