* A
hold-harmless clause in the event that a notice received by the CPA firm and forwarded to the client results in damages because the client fails to timely respond.
Ensure that the contract includes a
hold-harmless clause.
The Antideficiency Act violation was caused by a contract containing a
hold-harmless clause which subjected the Commission to potentially unlimited liability.
Additionally, a typical payer-provider agreement contains a
hold-harmless clause. Such clauses generally obligate the provider to look to the managed care organization for payment of services rendered, and not plan enrollees, except for copays or deductibles.
"I tell the MCOs, `If you don't let us run tests that we believe are necessary, you'll have to modify the hold-harmless clause of our contract.' That's the clause in which the physician indemnifies the MCO against lawsuits resulting from adverse outcomes." Smith further warns an MCO, "If a patient sues you over an adverse outcome that results from slow lab results, I'll be forced to testify that prompt results would have been available had you let us test the patient in our POL." These arguments have always convinced the MCOs to allow Smith's POL to do the tests.
Ask that the hold-harmless clause be stricken from your contract.
Had a reverse
hold-harmless clause been written into Kadison Pfaelzer's partnership agreement, releasing the remaining partners from the ex-partners' liabilities, the firm would have remained financially sound.
GAO also found that a Commission contract for temporary employees violated the Antideficiency Act as it contained a
hold-harmless clause which subjected the Commission to potentially unlimited liability.
Therefore, a CPA offering SysTrust services should consult legal counsel before using a loss-limiting or
hold-harmless clause in an engagement letter.
Therefore, a CPA offering WebTrust services should consult legal counsel before using a loss-limiting or
hold-harmless clause in an engagement letter.
Among other measures, writing center practitioners can help delineate the lines of responsibility and limit their risk of becoming scapegoats by continually communicating the center's mission to clients, keeping accurate records, and using
hold-harmless clauses.
* Indemnification and
hold-harmless clauses. Third parties are not bound by engagement letters, and many professional liability claims result from third- party suits.
