01 / The meaning
What it means.
The phrase often appears beside indemnity and release provisions in leases, hire contracts and service agreements. It can allocate responsibility more broadly than the business would otherwise have under general law. The heading does not establish whose negligence is included, whether defence costs are covered or whether the promise is limited. Read the complete clause and related insurance requirements together.
An obligation to provide an indemnity is different from an obligation to buy insurance. A liability policy can restrict assumed contractual liabilities, so signing a broad promise does not automatically make the insurer responsible for it. Waivers of recovery rights can introduce another issue. Have unusual clauses reviewed before signing, and provide the actual contract when asking a broker or insurer about insurance implications.
02 / Put it in context
A practical example.
Hypothetical example: a cleaning contractor is asked to hold a building owner harmless for all incidents at the site. Before accepting, it seeks advice about whose acts are included and whether the proposed obligation exceeds available liability cover.
This example illustrates the term. It does not predict a claim outcome.
03 / Read the detail
What to check.
- Identify the parties, losses and negligence covered by the promise.
- Check limits, defence obligations and waivers of recovery rights.
- Compare the clause with contractual liability provisions in the policy.
04 / Start a useful conversation
A question for your broker.
What liability would we accept by signing this clause, beyond our ordinary legal responsibility?
05 / Connect the terms
Keep the meaning in context.
06 / Apply it to your business
Related insurance guides.
Further reading
Read the source guidance alongside the relevant policy wording.
General information only. This does not take into account your objectives, financial situation or needs. Before acting, consider whether the information is appropriate for you. Cover is subject to insurer acceptance and the policy terms, conditions, limits and exclusions. Read the Financial Services Guide and the relevant PDS (where applicable) and/or policy wording before deciding.
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