An indemnification (hold harmless) clause in a construction contract generally:
Explanation
An indemnity (hold harmless) clause allocates risk: one party agrees to protect, defend, or reimburse the other against specified claims arising from the work. Capping damages at the contract price is a limitation-of-liability clause. Being named an additional insured is an insurance endorsement, which moves the cost to a carrier rather than between the parties. Sending disputes to an arbitrator is a dispute-resolution clause. Civil Code §2782(a) sets the outer limit: a construction indemnity reaching the promisee's sole negligence or willful misconduct is void.
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