A hold-harmless clause is an example of which type of risk management strategy?

A hold-harmless clause is indeed an example of a risk management strategy related to the transfer of risk. This type of clause typically involves an agreement in which one party agrees to assume responsibility for certain liabilities or damages, thus transferring the risk away from another party. By entering into such an agreement, a party can protect itself from potential losses resulting from claims made by third parties.

The essence of using a hold-harmless clause is that it allows one party to shift the financial burden or liability that could arise from specific situations or actions, such as accidents or negligence, onto someone else. This is fundamentally aligned with the concept of risk transfer, where the responsibility for certain risks is effectively passed from one entity to another.

Understanding this concept is crucial in the context of accidents and health insurance, as it helps clarify how parties can manage potential risks in contracts, ensuring that liabilities are appropriately allocated according to the agreement made between them.