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Hold harmless and indemnity provisions are used to shift risk from one party to another. CC&Rs and bylaws commonly contain language shifting liability for negligent acts from volunteers to the association. Recorded maintenance covenants between the association and a homeowner who modifies common area elements often contain hold harmless and indemnity provisions from injury or damage caused by the alterations. for private events normally contain hold harmless and indemnity provisions protecting the association from liability in the event someone is injured. A "hold harmless" or "liability waiver" provision in a contract is an agreement between the parties whereby one or both parties agree not to hold the other party responsible for any loss, damage, or legal liability that may arise under the agreement.
They can be beneficial or harmful to an association depending on how they are used. Without such provisions, it would be difficult or impossible to find volunteers. In other words, the two parties cannot sue each other for any damage they may suffer due to the negligence of the other party.
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