Insurance glossary · Contracts and certificates

hold harmless agreement.

Also called Indemnification clause.

The short answer

A hold harmless agreement is a contract clause where you agree to take on certain claims or costs on behalf of the other party, often the general contractor or property owner.

Nick McClish, Managing Partner, Riza Risk (licensed insurance agency) · Updated October 1, 2026

What does a hold harmless clause in a subcontract mean?

It means you agree to take on certain claims or costs for the other party, usually the general contractor or owner. If someone sues them over your work, the clause says you’ll pay the claim, their legal costs, or both. How much you take on depends on the wording, and on what your state allows.

What’s the difference between broad, intermediate and limited form indemnity?

Limited form makes you responsible only for your own share of fault. Intermediate form makes you responsible for the whole claim if you were at least partly at fault, even when the other party was too. Broad form makes you responsible even when the other party was entirely at fault. Many states void broad form, and some void intermediate form too.

What is a duty to defend in a hold harmless clause?

It’s a promise to pay for the other party’s lawyers from the start of a suit, not just the judgment at the end. Defense costs can be the biggest part of a claim, and a duty to defend can kick in before anyone knows who was at fault. Some states limit it to claims tied to your own work.

Does my general liability policy cover a hold harmless agreement?

Often, in part. Standard general liability covers liability you take on under an “insured contract,” which includes most construction indemnity clauses for injury and property damage. Some policies narrow that definition by endorsement, and what the policy covers is still limited by its own terms and exclusions. Your broker can check how your policy reads it.

How is a hold harmless agreement different from additional insured?

A hold harmless is your promise, backed by your own money and whatever your policy covers. Additional insured puts the other party directly on your policy. Contracts usually ask for both, so the other party has two routes: a claim against you under the contract and coverage under your policy.

Can a general contractor make me cover their own negligence?

It depends on the state. Most states void construction clauses that make a sub cover the other party’s sole negligence, many void clauses covering any share of it, and a few limit you to your own share of fault. A handful have no general construction statute. The state notes below show the rule in each state.

What is a mutual hold harmless?

A mutual hold harmless has each party cover the claims that come from its own work or fault. It’s common in vendor agreements and leases, and it’s often closer to what state law allows in construction than a one-way clause.

Does my umbrella cover a hold harmless agreement?

Usually it follows the general liability underneath it, so if the underlying policy covers the contractual liability, the umbrella can add limits above it. The umbrella’s own terms still apply, which is why its wording should be read alongside the contract.

Should I sign a contract with a broad hold harmless clause?

That’s a question for your attorney, since it’s about the contract’s legal terms. What a broker can tell you is how your policies respond to the clause as written: which parts are insured, which aren’t, and whether an endorsement would close a gap. Knowing both before you sign is what keeps the surprise out of the claim.

Does a hold harmless agreement work differently by state?

Yes, a lot. Construction anti-indemnity laws range from voiding only sole-negligence clauses to limiting a sub to its own share of fault, and some treat public, private and residential work differently. The notes below cover Riza’s licensed states in detail and every other state in a line.

in the states where Riza is licensed.

Riza is a licensed insurance agency in New York, Colorado, Texas, Florida, Massachusetts, Arizona, Nevada, North Carolina, New Jersey and Georgia. Notes below cite the law they come from. Detailed write-ups cover Arizona, Nevada, Texas, North Carolina and New York. One-line notes for other licensed states appear with them when this term has one.

ArizonaArizona has three rules. Private construction contracts can’t make you cover the other party’s sole negligence, but can cover shared fault if clearly written. Private contracts involving a dwelling can’t make you cover the other party’s negligence at all and limit the duty to defend to claims from your own work. Public contracts limit indemnity to your own fault.A.R.S. § 32-1159 · A.R.S. § 32-1159.01 · A.R.S. § 34-226contractors in Arizona →
NevadaNevada has no general construction anti-indemnity law, so a clause covering the other party’s own negligence is enforceable if the contract says so expressly. On residential construction-defect claims, a separate law voids clauses making a sub cover the controlling party’s own negligence while allowing indemnity tied to the sub’s own scope of work.NRS 40.693 · Reyburn Lawn & Landscape v. Plaster Dev. Co. (Nev. 2011)contractors in Nevada →
TexasThe Texas Anti-Indemnity Act voids construction clauses to the extent they make you cover the other party’s own negligence, which limits you to your own share. The big exception allows full indemnity for injury claims by your own employees or your subs’ employees. Single-family homes, townhouses, duplexes and municipal public works fall outside the Act and follow older court rules that require the clause to be express and conspicuous.Tex. Ins. Code ch. 151contractors in Texas →
North CarolinaNorth Carolina voids construction and design clauses, public or private, that make you cover damage caused by the other party’s negligence in whole or in part. Since 2019, indemnity is also void unless your own fault was a cause of the loss. The law doesn’t affect insurance contracts or workers’ comp.N.C.G.S. § 22B-1contractors in North Carolina →
New YorkNew York voids construction clauses that make you cover the owner’s or contractor’s own negligence, in whole or in part. Courts still enforce clauses written “to the fullest extent permitted by law,” so you cover the share that isn’t theirs. New York’s scaffold and ladder laws put heavy liability on owners and contractors, which is why these clauses, and the insurance behind them, are fought over so often there.N.Y. Gen. Oblig. Law § 5-322.1contractors in New York →
ColoradoColorado voids construction clauses making one party indemnify, insure or defend another against that party’s own negligence, so indemnity is limited to each party’s share of fault, public contracts included.C.R.S. § 13-21-111.5 · C.R.S. § 13-50.5-102
FloridaFlorida voids construction indemnity for the other party’s negligence unless the clause includes a monetary limit reasonably tied to the contract, and on public-agency jobs indemnity is limited to one’s own fault.Fla. Stat. § 725.06
GeorgiaGeorgia voids construction clauses requiring a party to indemnify, insure or defend another against that party’s sole negligence, while indemnity for shared fault stays enforceable.O.C.G.A. 13-8-2 (Justia, 2024)
MassachusettsMassachusetts voids clauses making a subcontractor indemnify for harm it didn’t cause, and a court has enforced full indemnity where the sub was only partly at fault.M.G.L. c. 149, section 29C
New JerseyNew Jersey voids construction indemnity only for the other party’s sole negligence, and courts enforce indemnity for shared fault only when the clause says so in clear, unequivocal terms.N.J.S.A. 2A:40A-1 (Justia) · Gordon Rees, 50 State Anti-Indemnity Matrix 2023 [secondary]

every other state.

How it works everywhere else, with the rule each line comes from. Riza is not licensed in these states.

AlabamaAlabama has no general construction anti-indemnity law, so a hold harmless clause covering the other party’s own negligence is enforceable if it says so clearly.Industrial Tile, Inc. v. Stewart (Ala. 1980) · Ala. Code § 41-9A-3 (design professionals)
AlaskaAlaska voids construction hold harmless clauses only for the other party’s sole negligence or willful misconduct, so indemnity for shared fault can be enforced.AS 45.45.900
ArkansasArkansas voids construction clauses requiring indemnity for the other party’s negligence or fault, allowing indemnity only in proportion to the indemnifying party’s own fault, with a separate law for public work.A.C.A. § 4-56-104 · [secondary] Gordon Rees, 50 State Legal Matrices 2026 (lists § 22-9-214 for public work)
CaliforniaCalifornia voids indemnity for the other party’s sole negligence, bars shifting active negligence on subcontracts, owner and public jobs, and limits residential subs to their own scope of work.Cal. Civ. Code § 2782 · Cal. Civ. Code § 2782.05
ConnecticutConnecticut voids construction hold harmless clauses that cover the other party’s own negligence in any share, not just sole negligence, though insurance contracts are unaffected.C.G.S. § 52-572k
DelawareDelaware voids indemnity in public and private construction contracts for injury or damage caused partly or solely by the other party’s negligence, while leaving insurance policies alone.6 Del. C. § 2704
District of ColumbiaThe District of Columbia voids subcontract clauses requiring a sub to indemnify a contractor or owner for harm caused solely by their negligence, for contracts from April 2023; older contracts follow case law.D.C. Code § 27A-202
HawaiiHawaii voids construction indemnity only for the other party’s sole negligence or willful misconduct, so clauses covering shared fault can still be enforced.HRS 431:10-222 (Justia, 2025)
IdahoIdaho voids construction indemnity only where the other party’s sole negligence caused the injury or damage, leaving indemnity for shared fault in place.Idaho Code 29-114 (Idaho Legislature)
IllinoisIllinois voids promises in public or private construction contracts to indemnify another party for its own negligence, whether that negligence caused the loss in whole or in part.740 ILCS 35 (Illinois General Assembly, Chapter 740 list) · 740 ILCS 35 full text (elaws mirror)
IndianaIndiana voids indemnity in construction and design contracts, other than highway contracts, only for the other party’s sole negligence or willful misconduct.IC 26-2-5-1 (Justia, 2024)
IowaIowa voids construction indemnity to the extent the other party’s negligence caused the loss, so a party can be held to indemnify only its own share.Iowa Code ch. 537A (Iowa Legislature, 2026)
KansasKansas voids construction indemnity for the other party’s own negligence or intentional acts, with carve-outs including separately negotiated risk-allocation terms supported by consideration.K.S.A. 16-121 (Kansas Revisor)
KentuckyKentucky voids construction clauses indemnifying a contractor for its own negligence, for contracts since June 2005, while leaving insurance contracts alone.KRS 371.180 (Kentucky Legislature)
LouisianaLouisiana voids construction clauses requiring indemnity or defense for the other party’s own negligence, or for third parties the indemnifying party doesn’t control.La. R.S. 9:2780.1 (FindLaw)
MaineMaine has no construction anti-indemnity statute after a 2026 bill died, so indemnity for the other party’s own negligence is enforced only if the contract states it clearly.AGC Maine testimony on LD 1761, Jan. 7, 2026 (states Maine lacks a construction anti-indemnity statute)
MarylandMaryland voids construction indemnity only for harm caused by the other party’s sole negligence and leaves insurance contracts alone, so indemnity for shared fault can stand.Md. Code, Cts. & Jud. Proc. section 5-401
MichiganMichigan voids construction indemnity for the other party’s sole negligence, and on public projects bars requiring contractors to indemnify beyond their own fault.MCL 691.991
MinnesotaMinnesota makes construction hold harmless and indemnity clauses unenforceable except to the extent the loss is caused by the indemnifying party’s own fault.Minn. Stat. section 337.02
MississippiMississippi voids construction promises to indemnify another party for its own negligence, though some courts read the law as reaching only sole negligence, and insurance contracts are excluded.Miss. Code section 31-5-41 (Justia)
MissouriMissouri voids construction promises to indemnify another party for its own negligence or wrongdoing, with exceptions including indemnity backed by required insurance the indemnifying party could price in.RSMo 434.100
MontanaMontana voids construction clauses requiring a party to indemnify, insure or defend another for that party’s own negligence or misconduct, so indemnity is limited to one’s own fault.MCA 28-2-2111
NebraskaNebraska voids construction promises to indemnify another party against liability for its own negligence, while expressly leaving insurance contracts outside the law.Neb. Rev. Stat. section 25-21,187
New HampshireNew Hampshire voids construction clauses requiring a party to indemnify anyone for injury or damage that the party or its people didn’t cause.N.H. RSA ch. 338-A (338-A:1, 338-A:2)
New MexicoNew Mexico voids public and private construction clauses requiring indemnity, insurance or defense for harm caused in whole or in part by the other party’s negligence.NMSA 56-7-1 as amended by Laws 2005 (HB 1104, enacted text)
North DakotaNorth Dakota has no general construction anti-indemnity law; its statute only voids clauses making a contractor liable for the owner’s design errors.N.D.C.C. ch. 9-08 (9-08-02.1) · Gordon Rees, 50 State Anti-Indemnity Matrix 2023 [secondary]
OhioOhio voids construction, design, repair and maintenance clauses indemnifying the other party for its own negligence, a rule read to include shared negligence.Ohio R.C. 2305.31 · Gordon Rees, 50 State Anti-Indemnity Matrix 2023 [secondary]
OklahomaOklahoma voids construction clauses requiring a party, or its surety or insurer, to cover the other party’s negligence or fault, so indemnity is limited to one’s own share.15 O.S. 221 (Oklahoma Statutes Title 15, Senate PDF)
OregonOregon voids construction clauses requiring indemnity for harm caused in whole or in part by the other party’s negligence, allowing indemnity only to the extent of one’s own fault.ORS 30.140 (oregon.public.law)
PennsylvaniaPennsylvania has no general construction anti-indemnity law outside design professionals, so indemnity for the other party’s own negligence is enforced only if the contract states it clearly.Gordon Rees, 50 State Anti-Indemnity Matrix 2023 [secondary]
Rhode IslandRhode Island voids construction, design, repair and maintenance clauses indemnifying the other party for its own negligence, read to include shared negligence, while leaving insurance contracts alone.R.I. Gen. Laws 6-34-1 · Gordon Rees, 50 State Anti-Indemnity Matrix 2023 [secondary]
South CarolinaSouth Carolina voids construction promises to indemnify a party only for damage caused by its sole negligence, so indemnity for shared fault is allowed.S.C. Code Ann. 32-2-10
South DakotaSouth Dakota voids construction indemnity only for injury or damage caused by the other party’s sole negligence, with a separate rule for design work.SDCL 56-3-18
TennesseeTennessee voids construction promises to indemnify the other party only for injury or damage caused by its sole negligence, leaving indemnity for shared fault enforceable.Tenn. Code Ann. 62-6-123 (text via Justia)
UtahUtah voids construction clauses requiring a party to insure, indemnify or defend another against harm caused by that party’s fault, not only sole fault, with a rule for apportioning owner fault.Utah Code 13-8-1 · [secondary] Watt Tieder 50-state survey, Utah (Meadow Valley Contractors v. Transcontinental Ins. Co., 27 P.3d 594)
VermontVermont has no construction anti-indemnity statute, and courts enforce indemnity for the other party’s own negligence only where the contract clearly says so.[secondary] Watt Tieder 50-state survey, Vermont (updated 1/1/2021)
VirginiaVirginia voids construction clauses, including public-body contracts, that require a contractor to indemnify another for damage caused solely by that party’s negligence.Va. Code 11-4.1
WashingtonWashington voids construction indemnity for the other party’s sole negligence and, where both sides share fault, enforces indemnity only to the extent of the indemnifying party’s own negligence.RCW 4.24.115
West VirginiaWest Virginia voids construction clauses indemnifying against bodily injury or property damage caused by the other party’s sole negligence, and its law excludes insurance contracts.W. Va. Code 55-8-14
WisconsinWisconsin’s construction statute voids clauses that limit or eliminate tort liability, but whether it reaches indemnity is unclear, since official notes say it didn’t void one indemnity clause.Wis. Stat. 895.447 with annotations
WyomingWyoming has no general construction anti-indemnity law; its statute applies only to well and mine work, and elsewhere indemnity is enforced if the contract states it clearly.Wyo. Stat. 30-1-131 (Title 30, wyoleg.gov) · [secondary] Watt Tieder 50-state survey, Wyoming

by trade.

General contractorsYou sign indemnity clauses with owners and ask for them from your subs. Keeping the sub clauses at least as broad as the owner clause, within what your state allows, keeps you from carrying the gap.
PlumbingCommercial plumbing subcontracts usually include indemnity with a duty to defend, and water damage claims are where it gets tested.
HVACService agreements with property managers often carry one-way indemnity clauses that are broader than construction subcontracts.
ElectricalTenant improvement contracts often ask you to indemnify the general contractor, the owner and the landlord together.
RoofingRoofing contracts often extend indemnity to claims long after the job, like leaks and interior damage.
Landscaping and property vendorsVendor agreements commonly ask you to hold the owner and management company harmless for slip-and-fall and property claims tied to your work.

where you’ll see it.

Subcontract indemnity sections“To the fullest extent permitted by law, Subcontractor shall indemnify, defend and hold harmless…”
Vendor and service agreementsUsually a one-way clause in favor of the property owner and manager.
LeasesTenants and landlords often agree to hold each other harmless for claims from their own premises or operations.
Equipment rentalsRental agreements often make the renter cover claims tied to the equipment while it’s out.

know what your policy covers before you sign.

Send Riza the contract. We read the indemnity and insurance sections against your policies, tell you which parts your coverage responds to and which it doesn’t, and line up any endorsements with your insurers. What to agree to is your call and your attorney’s; how your insurance responds is ours.

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Contractual liability Additional insured

Coverage it touches: General liability