Hold Harmless-Indemnity Agreement. Sometimes owners will reserve the common areas for a private party that may include the serving of alcohol. As part of its application for reserving the clubhouse or any other common areas for private events, associations should include an indemnity and hold harmless agreement. The agreement protects the association in the event there are injuries or losses arising from the event.
The hold harmless portion of the agreement means the host agrees not to file claims against the association. The indemnity portion means the host will pay the association's legal fees and any judgment in the event a third party sues the association.
Insurance. Associations can also require the event sponsor to take out insurance for the event and name the association as "additional insured."
ASSISTANCE: Associations needing legal assistance can contact us. To stay current with issues affecting community associations, subscribe to the Davis-Stirling Newsletter.