What term describes a contract where a business owner agrees to indemnify the city before erecting a business sign?

The correct term for a contract where a business owner agrees to indemnify the city before erecting a business sign is a hold harmless agreement. A hold harmless agreement is designed to protect one party from liability or claims by agreeing not to hold the other party responsible for certain acts or negligence. In this case, the business owner would be agreeing to protect the city from any legal consequences that may arise from the installation or presence of the business sign.

This type of agreement is particularly important in commercial environments, where the risks associated with business operations can lead to potential disputes or liabilities. By signing a hold harmless agreement, the business owner assumes the responsibility for any issues that might occur, thereby shielding the city from lawsuits or claims related to the sign.

In contrast, while an insured contract involves a situation where one party is covering risks for another through insurance, it does not specifically address the indemnification aspect implied in this question. Liability waivers are often used to release one party from liability in certain situations but don’t directly encompass the indemnity concept. An exculpatory clause typically limits liability but is not necessarily tied to a formal agreement of indemnity like a hold harmless agreement entails.