A save harmless clause, also known as a hold harmless clause, is a clause in a contract where one party promises not to hold the other party responsible if the other party causes some type of harm to the first party when performing the contract. Accordingly, the first party promising not to hold the other party responsible surrenders a potential claim or cause of action that might arise from the contract.
For example, A agrees not to sue B if A is injured due to B’s failure to maintain the premises. If A is injured due to B’s failure to maintain the premises, then A cannot sue B.
[Last updated in July of 2021 by the Wex Definitions Team]