Hold Harmless Clause

A contract provision in which one party to the contract promises to be responsible for liability incurred by the other party. Hold harmless clauses frequently appear in the following contexts: 1) Contracts . between dental benefit organizations and an individual dentist often contain a promise by the dentist to reimburse the dental benefit organization for any . liability the organization incurs because of dental treatment provided to beneficiaries of the organization’s dental benefit plan. This may include a promise to pay the dental benefit organization’s attorney fees and related costs; and
2) Contracts between dental benefit organizations and a group plan sponsor may include a . promise by the dental benefit organization to assume responsibility for disputes between a beneficiary of the group plan and an individual dentist when . the dentist’s charge exceeds the amount the organization pays for the service on behalf of the beneficiary.

If the dentist takes action against the patient to recover the difference between the amount billed by the dentist and the amount paid by the organization, the dental benefit organization will take over the defense of the claim and will pay any judgments and court costs.