What Is A Hold Harmless Agreement? – Let’s Take A Look
With the help of a hold harmless provision, you can protect your business from being sued by someone. A user can be someone who has suffered damage, bodily personal injury, or a financial loss on their business property while your business is offering a service. The hold harmless agreement can ensure you that some other party cannot hold you responsible for any risks during the service.
In this article, you will get a general idea of the hold harmless clause that comes in a legal contract. Furthermore, we will also discuss some of the general details of the importance of this legal clause in business and how it can be helpful for you. Hence, to learn more about the importance of this important clause, read on through to the end of the article.
What Is A Hold Harmless Agreement?
According to the definition of Investopedia,
“A hold harmless agreement is a clause in a legal contract absolving one party of legal liability for any injuries or damages suffered by another party. It ensures that one party cannot hold the other party legally responsible for any risks incurred from services provided.”
The hold harmless clause in your legal contract helps your business to release from liabilities such as financial loss, property damage, or bodily injury to another party while offering services. The hold harmless agreement allows business owners of all levels, especially the ones in high-risk industries, to protect their businesses from lawsuits. This agreement can be a great addition to the business.
What Is A Hold Harmless Letter?
A hold harmless letter is just the agreement or clause that is a part of the agreement, which releases the business’ liability in the contract. It is just another name for the hold harmless agreement.
What Are The Major Uses Of The Hold Harmless Agreement?
As per the information provided by The Hartford,
“A hold harmless clause is used as a release of liability in a contract that protects one party from injury or property damage caused by another party. By signing the clause, the other party is agreeing not to hold business owners legally responsible for the risks involved in certain services.”
The major use of a hold harmless agreement is that your business will likely get less sued than usual. Hence, you will not need to incur the high cost of getting legal bits of advice from your lawyer or attorney. Furthermore, you will also be able to focus more on your business rather than thinking about the possibilities of facing problems in your business.
A hold harmless agreement is especially beneficial at times when a third party will be using your services. For example, a third party might be using your property, or your business is responsible for providing services to another party. In such cases, having a hold harmless clause in the agreement helps not to get involved in the legal process when there is damage to the other party.
If you are renting or leasing a property to someone, you will not want to get sued if that person gets injured or experience property damage during their visit. Although you will get sued, insurance in this regard will help you to cover the expenses.
Another example can be the one when you are a general contractor, and you want to avoid a legal proceeding if the other person gets injured on the job.
Is A Hold Harmless Agreement Binding?
According to The Hartford,
“In most cases, a hold harmless agreement is binding and legally enforceable. Business owners should include specific language in their contract, stipulating a release of liability from lawsuits that occur as a result of negligence.”
However, the service consumer or customer can still claim legal liability from a third party, especially when the business owner has signed the agreement.
Major Pros And Cons Of A Hold Harmless Agreement
You have already seen that the hold harmless agreement is a crucial aspect of the liability insurance policy of a business’ commercial insurance. It minimizes the risks of the business’s reputation from getting hampered and the major financial impact if the business faces litigation.
The following are the major pros and cons of a hold harmless agreement that you must be aware of for your business:
Pros Of Hold Harmless Agreement
Here are the major pros of a hold harmless agreement from which you shall benefit:
1. Having a hold harmless clause on your insurance policy will help your business by reducing legal liability. This will further lessen the likely expenses you can have with a law firm.
2. A business that has a hold harmless agreement has less likelihood of getting sued. This helps the business not to hire lawyers often for the business.
3. You will not have to worry about legal problems, for example, getting sued. You will, thus, be able to focus more on your work, and this, in turn, will enable your business to thrive.
4. Your business’ reputation will not get hit, especially in a public litigation conflict.
Cons Of Hold Harmless Agreement
A hold harmless agreement enables a business to hold a party harmless despite damages and injuries. This leads to various drawbacks as well. Here are a few cons of the hold harmless agreement that you must know:
1. Many states in the US do not honor the provisions of a hold harmless agreement, especially the ones that are unclear and too broad.
2. A certain hold harmless agreement can go to avoid if the signer believes that he/she was tricked or forced into the given indemnity agreement.
3. Just because someone is held harmless, it does not mean that the hold harmless agreement can protect the business from a lawsuit. In such cases, you will need to consult with your business attorney to take legal advice on any unforeseen risks.
Summing Up
Hope this article was helpful for you in getting a better idea of the hold harmless agreement and the various uses, pros, and cons of it. What do you think of the ethical dilemma that occurs with such an agreement? Share your thoughts on the issue with us in the comments section below.
Read Also:
Tags:
Recent
Innovating Corporate Communication in Auckland with Video Production
October, 10 2024
Boosting Your Legal Practice: A Guide to Geo-Targeting SEO
September, 09 2024
Estate Planning Law: Expert Guidance for Your Future
September, 09 2024
How MRZ Scanner APIs Revolutionize Document Verification Systems
September, 09 2024
Related Articles
Is An Investment Banker A Good Career Choice?
Is your dream job to become an investment banker? If yes, then you have undergone several factors that can work well in your favor if you follow them judiciously. If you want to become a successful investment banker, you have to know some of the crucial fundamental aspects of this career to succeed in this career path. Frankly speaking, this career path demands attention to detail from the candidate who wants to become successful in this career. You cannot afford to miss your focus from your work at any point in time; otherwise, it can result in a massive disaster for the company. What Is Investment Banking? Investment banking is the process of raising capital for various firms. It can be done by issuing debt or selling equity. In this job profile, the person has to manage several other aspects like advisory, other corporate finance services. Mostly, smaller firms do not have any specific investment banker. These roles are handled by the corporate finance department. However, it is expected from the investment banker that they must have a firm grasp of the investment climate and have perfect knowledge of the investment vehicle. Whether a company must go for an IPO, or not, investment bankers are the critical contributors to the process. Therefore, maximizing the returns from the investment is the prime job role for them. An attempt must be taken to set the highest IPO possible. Investment Banker Job Description And Key Responsibilities Before you select it as your career choice, you need to be well aware of the job responsibilities of an investment banker. It will help you to boost your career in the right direction. Therefore, knowing the investment banker job description forms an essential part of your career development. An investment banker must develop many financial models for valuing debt and equity for acquisitions, mergers, and capital raising transactions. You need to perform various types of valuation methods like precedents, DCF, and comparable companies. An investment banker must develop recommendations for private equity transactions, product offerings, mergers, acquisitions, and valuations. You must prepare and view your materials, including the investment memorandum, pitch books, and management presentations. To expand the business, they have to develop relationships between new and existing clients. They have to create due diligence, analysis, research, and proper documentation of any kind of live transaction. Creating the perfect presentations for the client portfolios is another essential job role of an investment banker. An investment banker must have an affinity towards the relevant news, current events, and critical issues. You must have an affinity towards relevant news, current events, and critical issues. Only then can you consider yourself to be the best fit for this job profile. Without knowing their job description, if you invest your time and effort in gaining a career in this profile, you are simply reducing the chances of your career development. What Are The Skills And Traits Of Investment Banker? There are specific skills and traits of an investment banker that one must follow at their end while you want to develop your career in the correct direction. An interviewer will look through specific skills and knowledge from a candidate applying for the position. Some of these are as follows:- Willingness to work for an extremely long duration of time (80+ per week). Must maintain proper attention to detail. They must be great team players. They must be excellent people to handle PowerPoint, Word, and Excel. The candidate must possess a strong knowledge of accounting and finance. The financial modeling skills of that person must be of the excellent category. Understanding world market economics is an essential part of their job profile as it can affect the financial structure of any business. What Are The Possible Investment Banker Career Progression Graph? The possible career progression of the investment banker can have if they pursue their career in that domain are as follows:- An associate. An Analyst. Vice President. Managing Director. If you want to continue your career as an investment banker, you must know the hierarchy of positions that they must maintain to develop their business. In most cases, the undergraduates are also recruited under two years of the analyst training scheme. Therefore, the junior analyst job of an investment banker is quite enticing. However, an analyst must complete an MBA in this field to understand various dimensions. What Are The Investment Banker Degree One Should Possess At Their End? For becoming an investment banker, one should possess certain degrees and specialties in their job profile to make things work in their favor. In addition, there are specific relevant skills, degrees, and knowledge to improve their learning in the right direction. You must hold a degree in MBA or equivalent training, work-related experience, and education. From a target school or equivalent, one must possess a bachelor’s degree for the Analyst position. Three to more years of experience is required for gaining an associate position in finance and business-related background. You must have the ability to work in a fast-paced, team-based working environment that requires minimal supervision. You must have a working knowledge of deal closing and sound deal structuring principles. Vital networking and communication skills are required. Practical financial modeling skills are necessary for developing your business. Depending on the financial requirement, you have to prepare your financial planning to develop your business in the right direction. Therefore, proven proficiency, especially for VBA and Microsoft Excel, is required. What Is The Investment Banker Salary? Most of the candidates today have this common question: What is the salary scale of an investment banker? You need to go through the slabs of their salary with all the required designations to understand the prospect of this field. Salary Range Of An Investment Banker Title Total Remuneration Base Salary Analyst $125-$200k $85-$100K Associate $180-$250K $100-$120K Vice President $220-$400K $120-$150K Managing Director $500K -$10M+ $300-$1M Final Take Away Hence, if you want to become an investment banker, you need to know the above criteria and qualifications you need to cross pass to excel in this career. You cannot make your choices in grey while developing your business in the right direction. So work out the plans in the correct order to achieve your objectives in the best possible ways. Before selecting a career, you must cross-check the facts first to jump to any sort of conclusion. Frequently Asked Questions (FAQs) 1. Is It Worth Being An Investment Banker? Being an investment banker one should be aware as it is now one of the best paying jobs in the market available today. 2. Is There Any Demand For Investment Bankers? The US Bureau of Labor Statistics has declared that the demand for investment bankers will increase by 10% starting from 2014-2024. 3. Which Field Is The Best For The Investment Banker? MBA and CFA certifications are essential for becoming an investment banker. It can help you to achieve your objectives better. 4. Is Investment Banker A Dying Industry? Investment banker jobs are not dead in the global market. You need to make your choices in the right direction to achieve your goals. Read Also: Why Create A Powerful Business Continuity Plan? What Is Network Marketing And How To Do It In 2021 How To Start A Business In 2021 – Best Business Strategies
December, 12 2021
How To Get A Mortgage As A Small Business Owner
Getting a mortgage can be complicated for a small business owner compared to an employed person. Nonetheless, it's possible to get a mortgage from a banking institution. Securing a mortgage is difficult because a small business owner has a variable and unpredictable income. The lender will assess the business facility more strictly when getting a mortgage. In addition, the lender must assess the business's performance, especially its profitability. These aspects can determine the success of your mortgage application. The strict assessment for small business owners is because the lending institution must ensure that the mortgage can be repaid. It would be beneficial to go through an educational read or consult a banking agent before applying for a mortgage. That said, here’s how you can get a mortgage as a small business owner: 8 Details About How To Get A Mortgage As A Small Business Owner 1. Provide Accurate Information About Your Income The best way to start your mortgage application as a small business owner is by providing accurate financial statements. If you provide inaccurate details about your income, you’ll likely be disqualified from getting a mortgage. The lenders, such as banking institutions, use financial documents to determine how much income you make after taxes and profits. Additionally, it's best to provide the financial statements of at least the most recent three years. The lender uses this data to evaluate the performance of your business. 2. Provide All The Required Documents As mentioned before, getting a mortgage as a small business owner can be challenging, and you might need to provide many documents. The lender will need you to provide all the documents demonstrating your financial capacity to meet your obligations. Some of the documents you'll be required to have include the following: Financial statements for at least three years preceding your mortgage application. It'd help to have an accountant prepare the documents. Documents of incorporation of the business indicating the year it was incorporated. Documents of accounts showing personal and business returns. Bank statements indicating current expenditure and income. You should also be ready if the lender requests more documents on the operations of your business. 3. Provide Details On The Business Legal Structure The legal structure of your small business can determine whether or not you can receive a mortgage. The lender's approach towards the following legal structures are different because of their composition and nature: Limited Company: As a small business owner, if you're listed as a director in the company, the lender would be concerned about your salary and dividends. The lender uses the data from the company accounts, annual tax returns, and profits. The lender can also request to look into the operating agreement when assessing your role in the company. Sole Proprietorship: In this case, the lender assesses the net profit from the business based on your accounts and annual tax returns. That's because there's no separation of entities in a sole proprietorship. Partnership: If you're a partner in the business, the lender will focus on assessing your share of the net profit from the partnership. To determine your share, the lender will have to look into the partnership agreement or divide the profits by the number of partners in the business. It'd be best to prepare all your business documentation if the lender requests further information. 4. Keep Separate Personal And Business Income Accounts You should also ensure that you separate your income from the business and have proper records. When applying for a mortgage, you'll have to provide financial records that reflect your income. You can hire an accountant to help separate your financial records from the business. For example, if your business is a sole proprietorship, you can pay yourself a salary and separate the two accounts. To make the mortgage application smooth, you should issue yourself with a parsnip as proof of payment of salary. 5. Establish Great Personal Credit One of the greatest determinants of whether you can get a mortgage is your credit. You ensure that your company and you have good credit. If either of the credits is bad, the lenders will hesitate to give you a mortgage. Moreover, good credit indicates that you can properly manage your finances. In addition, a good credit score indicates that you can meet your financial obligations when they're due. It gives the lender the confidence to give you a mortgage despite your being a small business owner. On the other hand, if you have a poor credit score, start building it first. It will help you score well when you finally buy a home. Moreover, getting a mortgage would be easy once you've built a credible credit score. Furthermore, poor credit can be costly because you'll have to put down a higher down payment. 6. Build A Large Equity Cushion As mentioned before, you might have to make a larger down payment, especially if you have a poor credit score. However, a large down payment on your mortgage is okay because it can help you build a larger equity cushion. It can help reduce your lender's risk and boost their confidence. You can also get a better interest rate on your mortgage if you put down a large down payment or make biweekly payments. 7. Use A Portfolio Lender Portfolio lenders have programs that make it easy for small business owners to obtain mortgages. It means that a portfolio lender would ask for alternative documentation instead of financial statements or tax returns. For instance, the portfolio lender might ask you for a copy of your business license. Another benefit of using a portfolio lender to get a mortgage is that they might qualify you for a higher debt-to-income ratio. It means you can get a higher mortgage rate than your income, thus enabling you to buy a better house. If you have trouble finding a portfolio lender, you can use a mortgage broker to find the best deal. The mortgage broker can find a lender that'll suit your needs as a small business owner. Nonetheless, ensure that you end up with at least three mortgage quotations to compare and choose the best deal. 8. Improve Your Debt-To-Income Ratio The best way to boost your lender's confidence is by reducing your debt-to-income ratio. In most cases, the mortgage lender would prefer a ratio of between 36% and 43%. You can achieve this ratio by creating a plan to pay off your debts, such as student loans and credit cards. Settling these loans and improving the ratio before applying for the mortgage is best. It will ensure that your mortgage application gets considered and approved easily. The Role Of A Mortgage Virtual Assistant Navigating the complexities of acquiring a mortgage as a small business owner can be daunting. However, with the assistance of a mortgage virtual assistant, the process becomes smoother. This AI-powered tool can guide you through the necessary paperwork, financial documentation, and lender interactions. From determining your eligibility to helping you understand interest rates, a mortgage virtual assistant ensures that you're well-informed and prepared, making your journey toward homeownership as a small business owner more manageable. Conclusion Applying for a mortgage as a small business owner can be a hectic procedure because of the uncertainties in your business. However, you can boost the confidence of the lending institution by ensuring that all your documents are provided, including the financial statements. Moreover, hiring a mortgage broker to help you find the best mortgage lender would be easier. Ensure you've also shopped around and understand the best deals before settling on a mortgage lender. Read Also: How To Start A Dropshipping Business In 2021 – A Beginners Guide Boxed Packaged Goods: The Right Guide To Uplift Your Business How To Start A Concession Stand Business? – A Complete Guide
December, 12 2022
Bank Of America Boston: Everything You Should Know
Do you want to know about Bank of America Boston? If yes, please read the complete article at the end to get the full information. Bank of America is one of the oldest banks in the world and the USA, dating back 240 years ago. The Bank of America was re-formed when it was merged with National Bank in 1998. As a result, the Bank of America Boston was the first coast-to-coast bank of America. Currently, bank of America has served 66million customers, and in their 4300 branches, they have served a considerable number of Business clients. In the consumer deposit market, it is number one in the US. Along with it, this is the number one small business lender. Company Overview Of Bank Of America Boston As Per Experts Official Website www.bankofamerica.com Inception Year 1998 Banking Products Offered Credit Cards, CDs, Checkings and Savings Customer services you will receive You will receive customer services from 8 am-11 pm Monday to Friday and Saturday to Sunday 8 am to 8 pm. This is a brief overview of the bank of America Boston. But, most importantly, you will receive better returns from your investment if you select a suitable scheme for your business. What Is Bank Of America Best For? The bank of America is best for providing ease of access for those customers who want higher rates of Interest. It is suitable for those customers who want to get:- You will be able to bank in for a person. Ease of access to the Bank ATM will be possible. You can earn additional discounts and rewards with relationship pricing. You can open a savings and checking account with a low opening deposit. It is an established bank that comprises various deposits and lending products. What Services Bank Of America Boston Offers To Its Clients? The Bank of America offers several kinds of services to its clients. Some of the best services of Bank Of America Boston are as follows:- 1. Checking Accounts The Bank of America Boston Offers three Checking accounts that can be opened with $100 or less in most cases. There are three ways Bank Of America will provide you with quality checking account services. Advantage Plus The advantage plus plan of Bank of America is a daily checking account where $12 regular monthly fees can be raised when you qualifying a direct deposit of $250. More than $250 you can maintain by depositing $1500 minimum daily. Advantage Safe balance The advantage safe balance allows checkless accounts with the help of a debit card. It will help the customers to stay within their balance. If you are a student, then a monthly fee of $4.95 is waived if your age is below 24 years. You do not have to pay the overdraft fees here. Advantage Relationship The advantage relationship helps you to earn interest on your balances. In addition, it waives the fees for making the additional checking and balance account. For example, in your eligible linked account, when you maintain a combined balance of $10,000, you can waive an interest of $25 monthly fee. 2. Savings Accounts Customers will have various saving account options. In addition, this account provides the tiered interest, which will grow with the relationship with the bank. You need to make a minimum deposit of $100 to open an account in Bank. You have to pay $8 a monthly fee with an opportunity to earn various monthly yields. Some of the yield opportunities are as follows:- In the standard Yield return, you can earn 0.01%. You can earn a 0.02% yield on the Gold Return scheme. You can earn a rate of 0.03% platinum. Platinum Honor scheme can provide you 0.05% return on your yield of savings account. 3. Current Deposits Account You can earn standard term CDs from the Bank of America Boston with a $1000 minimum deposit account. Standard CDs are available in the mode ranging from one month to ten years. The annual percentage yield you can get from this account is between 0.03% to 0.05%. On the other hand, if you want to earn more yield from your return, you can earn from featured CDs and Promotional CDs where you have to make a minimum deposit of $10,000. You will get fewer term options for the APY’s. 4. Credit Cards Bank Of America offers numerous credit cards which provide several cash-backs, support charitable causes and offer travel rewards. In addition, there are some credit cards available with the Bank Of America, which allows you to earn maximum credit rewards. You Can earn 75% of more rewards on various purchases. In addition, Bank Of America provides different Customized Rewards for visas. Popular Cashback Credit Cards Of Bank Of America are as follows:- Bank of America Customized Cash rewards. Cash Reward Cards For Students. Customized Cash Reward Secured Cards. Bank Of America Premium Rewards. MLB. US Pride. World Wildlife Fund. Apart from the Cashback credit cards Bank of America also provides Travel Reward Credit Cards. So you can get maximum exposure from it. To travel all around the world. 5. Other Financial Products Apart from the mainstream services, Bank Of America Boston also offers certain crucial other services that can help you get rid of any kind of financial crisis. Some of them are as follows:- You can purchase mortgages. Auto Loans. You Can Refinance The Mortgages. BOA also provides Home Equity Lines of Credit. You can also open your retirement accounts. It offers Self Directed trading opportunities. Financial Advisors. Private Banking. You can also get Business loans. Pros & Cons Of Bank Of America Services Some of the crucial Pros and Cons Of Bank Of America you must know before you make your investment decisions in it. Of course, you have to understand the facts before making your investments in any Bank. Pros Of Bank Of America Cons Of Bank Of America 1. Unparalleled access to around 4300 branches across 17000 ATM’s 1. High Yield savings account options are not there. 2. You have to pay low minimum deposits to open your savings or Check accounts. 2. You cannot waive or reimburse the ATM fees 3. Also, you can earn higher rates on lending discounts for getting the preferred rewards. 3. You will Get the Non-co-operative certificates rates. Final Take Away Hence, if you want to know more about the Bank Of America Boston, you have to follow the mentioned points to get the maximum returns. In addition, you have to understand the ways of earning more yield from your investments. You can share your experiences and opinions in the Bank of America Boston comment box. There may be certain things that I may miss out on in my article, but you can feel free to share your comments so that I can prepare better informative content the next time. More Resources: Is Investment Banker A Good Career Choice? Impact Of Covid-19 On The World Market Economics And Its Future Is Nykaa Going To Dominate The Market With Their Recent IPO Launch?
January, 01 2022