Held Harmless and Exclusion of Liability

Held Harmless and Exclusion of Liability are two essential logistics terms that define responsibility and mitigate risks within supply chain and transportation agreements. 

Held Harmless 

Held Harmless refers to a contractual provision where one party agrees to indemnify and protect another party from any financial or legal consequences arising from specified events or actions. In the context of logistics, this often means that a logistics service provider (such as a carrier or warehouse) agrees to hold the shipper harmless from any claims, losses, damages, or liabilities resulting from the transportation or storage of goods.  

Exclusion of Liability 

Exclusion of Liability is a related concept but operates differently. It involves defining and limiting the scope of liability that one party (usually the service provider) has towards the other (typically the shipper). In logistics contracts, you might see clauses that exclude liability for certain events or circumstances, such as acts of nature, war, strikes, or inherent vice in the goods being transported.