A Hold Harmless Agreement under Canadian law is a contract in which one party agrees not to hold another party legally responsible for any injuries, losses, or damages that may arise from a specified activity or use of property. It functions as both a risk transfer mechanism and a liability shield, combining elements of voluntary assumption of risk with contractual indemnification.

Canadian common law recognizes the doctrine of volenti non fit injuria — the principle that a person who voluntarily assumes a known risk cannot later seek compensation for resulting harm. Provincial Occupiers' Liability Acts (Ontario R.S.O. 1990 c. O.2, BC R.S.B.C. 1996 c. 337, Alberta R.S.A. 2000 c. O-4) expressly allow property occupiers to restrict, modify, or exclude their statutory duty of care through written agreements, provided the terms are brought to the attention of the affected person before the activity begins.

Hold harmless agreements in Canada come in three forms: unilateral (one party releases the other), reciprocal (both parties release each other), and intermediate (one party holds the other harmless except for the other party's own negligence). Canadian courts scrutinize these agreements closely and will not enforce clauses that attempt to exclude liability for gross negligence, wilful misconduct, or fraud, as such exclusions are contrary to public policy.

In Quebec, the Civil Code (art. 1474 C.C.Q.) imposes stricter limits, prohibiting any exclusion of liability for bodily or moral injury. For all other provinces operating under common law, enforceability depends on clarity of language, voluntary consent, and whether the releasor had a genuine opportunity to understand the risks.

When organizing a recreational event, sports activity, or adventure tourism experience where participants face inherent physical risks — such as skiing, rock climbing, or whitewater rafting — and the operator needs legal protection against injury claims.

When a property owner permits a third party to access their premises for construction, maintenance, or an event, and needs to transfer liability for injuries or property damage under the applicable provincial Occupiers' Liability Act.

When a business hires an independent contractor and wants assurance that the contractor will assume responsibility for any third-party claims arising from the contractor's work, including worker injuries not covered by WSIB/WCB.

When lending equipment, vehicles, or tools to another party and the owner wants to ensure the borrower accepts full responsibility for any damage or injury resulting from use.

When a volunteer organization involves unpaid participants in activities that carry physical risk, and needs a signed waiver before the activity begins.

Operating without a hold harmless agreement means the property owner, event organizer, or equipment lender bears the full burden of negligence claims, which can result in substantial damage awards under Canadian tort law.

Identification of Parties and Activity — Clearly name the releasor (the person assuming risk) and the releasee (the party being protected), along with a precise description of the activity, location, and dates covered. Ambiguous descriptions weaken enforceability.

Voluntary Assumption of Risk — An explicit acknowledgment that the releasor understands the specific risks involved and voluntarily chooses to participate. Canadian courts require evidence that the person was informed of actual dangers, not merely presented with boilerplate language.

Hold Harmless and Indemnification Clause — A clear statement that the releasor will not hold the releasee liable and will indemnify them against any claims, including legal costs and damages. Best practice in Canada is to include both hold harmless and indemnity language for comprehensive protection.

Scope and Limitations — Define whether the agreement covers only ordinary negligence or extends to the acts of the releasee's employees, agents, and subcontractors. Canadian courts will not enforce exclusions for gross negligence or intentional harm.

Compliance with Provincial Legislation — Reference the applicable Occupiers' Liability Act and ensure the agreement meets provincial requirements. In Ontario, s. 3(3) allows written assumption of risk; in BC, s. 3(3) permits similar contractual modification.

Severability Clause — If any provision is found unenforceable (such as an overly broad negligence exclusion), the remainder of the agreement survives. This is particularly important given the variation in provincial standards.

Witness or Notarization — While not legally required in most provinces, having the agreement witnessed or notarized strengthens evidence that the releasor signed voluntarily and with full understanding.

Governing Law and Jurisdiction — Specify the province whose laws govern the agreement and the court with jurisdiction over any disputes. This prevents forum shopping and ensures predictable legal outcomes.