Insurance & LiensQuestion 1486 of 1605
An indemnity (hold-harmless) clause in a construction subcontract typically operates to:
a.Transfer the project schedule risk
b.Eliminate the need for any insurance
c.Waive the owner's right to a mechanics lien release
d.Shift specified liability and defense costs from one party (the indemnitee) to another (the indemnitor)
Explanation
An indemnity/hold-harmless clause reallocates liability by having the indemnitor agree to defend and/or reimburse the indemnitee for specified claims. It is a contractual risk-shifting device, often backed by insurance, and is distinct from schedule or lien provisions.
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Related questions on this topic
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- A recorded mechanics lien claim in California must include, among other things, a statement of the claimant's demand, the name of the owner, a description of the site, and:
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Reviewed by Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verify)