Gross negligence clause: Copy, customize, and use instantly
Introduction
A gross negligence clause is designed to address the level of care expected from the parties involved in an agreement, outlining the consequences of failing to meet that level of care. Gross negligence refers to a severe lack of care that shows reckless disregard for the safety or well-being of others. This clause ensures that the responsible party is held accountable for damages or losses resulting from their gross negligence and sets the terms for indemnification or liability.
Below are templates for gross negligence clauses tailored to different scenarios. Copy, customize, and insert them into your agreement.
Standard gross negligence clause
This version includes general gross negligence provisions.
Neither party shall be liable for damages or losses arising from ordinary negligence, except in the case of gross negligence, in which case the responsible party shall indemnify and hold harmless the other party from any resulting claims, losses, or damages. Gross negligence includes acts that demonstrate a substantial deviation from reasonable care, resulting in harm to the other party or third parties.
Gross negligence clause with provision for indemnification
This version applies to indemnification.
[Party B] agrees to indemnify and hold [Party A] harmless for any damages, losses, or legal costs arising from [Party B]'s gross negligence. This indemnification applies to third-party claims, legal proceedings, and any direct losses incurred by [Party A] as a result of [Party B]'s actions or omissions demonstrating gross negligence.
Gross negligence clause with provision for limiting liability
This version applies to limiting liability.
In the event of gross negligence, the liable party will be responsible for all damages, losses, and legal costs that arise directly from their grossly negligent actions or omissions. However, the liability will be limited to direct damages and will not extend to any indirect or consequential damages.
Gross negligence clause with provision for determining gross negligence
This version applies to determining gross negligence.
Gross negligence, as referenced in this agreement, is defined as the intentional disregard or extreme lack of care that results in harm to the other party or third parties. A court or arbitrator will determine whether an action constitutes gross negligence based on the severity of the deviation from ordinary care and the extent of harm caused.
Gross negligence clause with provision for legal costs
This version applies to legal costs.
In the event that a claim arises due to gross negligence, the responsible party shall be liable for all legal costs, including attorney fees, incurred by the other party in defending against the claim. This includes costs associated with settlements or judgments resulting from the grossly negligent actions or omissions.
Gross negligence clause with provision for a higher standard of care
This version applies to a higher standard of care.
[Party B] agrees to perform its duties with a higher standard of care and diligence and will be held responsible for any damages arising from gross negligence. Gross negligence is defined as any action or failure to act with extreme disregard for the safety or rights of others.
Gross negligence clause with provision for excluding ordinary negligence
This version applies to excluding ordinary negligence.
[Party B] will not be held liable for damages or losses resulting from ordinary negligence, but will be held liable for any damages arising from gross negligence. For purposes of this clause, gross negligence is defined as conduct that demonstrates a willful or reckless disregard for the safety of others.
Gross negligence clause with provision for defining gross negligence
This version applies to defining gross negligence.
Gross negligence shall be defined as any act or omission that involves a reckless disregard for the foreseeable consequences of the actions taken. It is a higher degree of negligence than ordinary negligence and involves a significant deviation from the standard of care expected under the circumstances.
Gross negligence clause with provision for limiting indemnity obligations
This version applies to limiting indemnity.
In the event of gross negligence, [Party B] agrees to indemnify [Party A] for any damages, but only to the extent that such damages directly result from [Party B]'s grossly negligent actions or omissions. The indemnity does not apply to damages resulting from [Party A]'s own actions or negligence.
Gross negligence clause with provision for joint gross negligence
This version applies to joint gross negligence.
If both parties are found to be grossly negligent in the performance of this agreement, each party will bear responsibility for its proportionate share of the damages caused. In the case of joint gross negligence, the parties agree to divide liability based on the relative severity of their respective negligent actions.
Gross negligence clause with provision for consequences of gross negligence
This version applies to consequences of gross negligence.
In the event that [Party B] engages in gross negligence, [Party A] will have the right to terminate the agreement without notice and seek full compensation for any damages resulting from [Party B]'s actions. [Party B] will be liable for any direct, consequential, or punitive damages resulting from its grossly negligent conduct.
Gross negligence clause with provision for damages arising from third-party actions
This version applies to third-party actions.
[Party B] agrees to indemnify and hold [Party A] harmless from any third-party claims, damages, or losses arising from [Party B]'s gross negligence in carrying out its duties under this agreement. This includes claims related to property damage, bodily injury, or any other third-party harm resulting from [Party B]'s conduct.
Gross negligence clause with provision for preventing further harm
This version applies to preventing further harm.
In cases of gross negligence, [Party B] is required to take immediate corrective action to prevent further damage or harm. [Party B] will bear the full responsibility for any additional harm or loss that results from a failure to act promptly and effectively to mitigate the consequences of its grossly negligent actions.
Gross negligence clause with provision for ensuring compliance with safety standards
This version applies to safety standards compliance.
[Party B] will ensure compliance with all applicable safety standards and regulations. Any deviation from these standards that results in gross negligence and harm to [Party A] or third parties will render [Party B] fully liable for any damages or legal consequences arising from the incident.
Gross negligence clause with provision for excluding liability for force majeure events
This version applies to force majeure events.
[Party B] will not be held liable for damages arising from force majeure events, including natural disasters, war, or government actions. However, [Party B] will remain fully liable for any damages or losses resulting from gross negligence, regardless of the occurrence of a force majeure event.
Gross negligence clause with provision for addressing gross negligence in subcontractor actions
This version applies to subcontractor actions.
[Party B] will be held responsible for any gross negligence occurring through the actions or omissions of its subcontractors. [Party B] agrees to ensure that all subcontractors comply with the terms of this agreement and will indemnify [Party A] for any third-party claims arising from subcontractor gross negligence.
Gross negligence clause with provision for limiting the extent of liability
This version applies to limiting liability.
[Party B]'s liability for damages arising from gross negligence will be limited to the amount paid by [Party A] for the specific services or performance under the agreement. [Party B] will not be liable for indirect, consequential, or punitive damages unless otherwise required by law.
Gross negligence clause with provision for gross negligence causing delay
This version applies to delays.
If gross negligence by [Party B] causes a delay in the performance of the work under this agreement, [Party B] will be responsible for compensating [Party A] for any resulting losses, including but not limited to additional costs, lost revenue, or missed deadlines. [Party A] will not be responsible for any delay caused by [Party B]'s gross negligence.
Gross negligence clause with provision for addressing violations of confidentiality due to gross negligence
This version applies to confidentiality violations.
In the event that gross negligence by [Party B] results in a breach of confidentiality or the unauthorized disclosure of confidential information, [Party B] will be liable for any damages or losses incurred by [Party A] as a result. This includes the costs of mitigating the breach, legal fees, and any penalties imposed.
Gross negligence clause with provision for ensuring good faith performance
This version applies to good faith performance.
[Party B] agrees to perform all duties under this agreement in good faith and with reasonable care. In cases where gross negligence is demonstrated, [Party B] will be fully liable for any damages or harm that arise as a direct result of its reckless disregard for the duties set forth in this agreement.
Gross negligence clause with provision for limitations on gross negligence claims
This version applies to limitations on claims.
[Party A] agrees to limit any claims for damages arising from gross negligence to the actual amount of direct damages sustained by [Party A] as a result of the grossly negligent actions. Claims for emotional distress, loss of opportunity, or punitive damages will not be included unless specifically outlined elsewhere in this agreement.
Gross negligence clause with provision for seeking immediate legal action
This version applies to legal action.
In the event of gross negligence, [Party A] may seek immediate legal action to remedy any harm caused. [Party B] agrees to cooperate with [Party A] in addressing the consequences of the gross negligence, including providing access to relevant documents and resources needed to resolve the matter.
Gross negligence clause with provision for exclusion of liability for acts outside the agreement
This version applies to exclusions for acts outside the agreement.
[Party B] will not be held liable for any third-party claims arising from actions outside the scope of this agreement, except in cases of gross negligence. In such instances, [Party B] will be responsible for any damages resulting from actions directly linked to the performance of this agreement.
Gross negligence clause with provision for including additional safeguards against negligence
This version applies to safeguards.
[Party B] will implement additional safeguards to prevent actions that could result in gross negligence. This includes training, regular audits, and compliance checks to ensure that all activities carried out under this agreement meet the highest standards of care and professionalism.
Gross negligence clause with provision for addressing gross negligence during performance review
This version applies to performance reviews.
In the event that gross negligence is identified during a performance review, [Party B] will be liable for any damages resulting from such negligence. [Party B] will take immediate corrective action to remedy the issue and prevent future occurrences of gross negligence in subsequent work.
Gross negligence clause with provision for financial responsibility in the case of gross negligence
This version applies to financial responsibility.
[Party B] will be financially responsible for all costs, including legal fees, settlement amounts, and damages, arising from claims due to gross negligence. This includes both direct and consequential costs resulting from [Party B]'s grossly negligent actions.
Gross negligence clause with provision for indemnification of directors and officers
This version applies to indemnification for directors and officers.
[Party B] will indemnify and hold harmless [Party A] and its directors, officers, employees, and agents from any third-party claims arising due to [Party B]'s gross negligence in performing obligations under this agreement. This indemnity includes legal fees, settlement costs, and any damages resulting from the grossly negligent actions of [Party B].
Gross negligence clause with provision for clarification of "gross negligence"
This version applies to clarification of gross negligence.
For purposes of this agreement, "gross negligence" is defined as an extreme departure from the standard of care that a reasonable person would exercise under similar circumstances. It is characterized by a conscious disregard of the risks and consequences associated with the action or failure to act.
Gross negligence clause with provision for ensuring early notification of negligence claims
This version applies to early notification.
[Party B] agrees to notify [Party A] immediately upon becoming aware of any event, act, or omission that may lead to a third-party claim based on gross negligence. This early notification is required to allow [Party A] to take necessary actions to mitigate potential damages.
Gross negligence clause with provision for providing proof of corrective actions taken
This version applies to corrective actions.
In the event that gross negligence is identified, [Party B] will be required to provide [Party A] with proof of corrective actions taken to address the issue. This may include evidence of retraining, process changes, or corrective work completed to prevent similar occurrences.
Gross negligence clause with provision for retroactive liability
This version applies to retroactive liability.
In the case of gross negligence, [Party B] will be held retroactively liable for any damages or losses incurred by [Party A] or third parties, even if the negligence occurred prior to the commencement of this agreement. This liability applies to any negligent actions or omissions that cause significant harm.
Gross negligence clause with provision for limiting liability in case of concurrent negligence
This version applies to concurrent negligence.
In cases where gross negligence is found in combination with ordinary negligence from [Party A], the liability of [Party B] for damages will be reduced proportionally. Both parties will be responsible for their respective share of the damages arising from the combined negligence.
Gross negligence clause with provision for ensuring that subcontractors adhere to the clause
This version applies to subcontractors.
[Party B] will ensure that all subcontractors engaged in the performance of this agreement comply with the gross negligence provisions of this agreement. If a subcontractor’s actions result in gross negligence, [Party B] will be fully responsible for any resulting damages, legal costs, or liabilities.
Gross negligence clause with provision for covering intentional misconduct
This version applies to intentional misconduct.
Gross negligence does not extend to cover intentional misconduct or fraudulent actions. In the event that a party engages in such conduct, that party will be fully liable for all resulting damages, including punitive damages, and will indemnify the other party against all claims.
Gross negligence clause with provision for assigning liability to executives
This version applies to executives.
If gross negligence is identified in the actions of executives or senior management, [Party B] will be held responsible for indemnifying [Party A] against any resulting third-party claims. Senior management will also be held personally accountable for failing to implement necessary safeguards or controls.
Gross negligence clause with provision for prompt settlement of third-party claims
This version applies to settlement.
[Party B] agrees to promptly settle any third-party claims arising from gross negligence, including any legal or settlement costs, to prevent delays in project delivery. If [Party B] fails to settle in a timely manner, [Party A] will have the right to seek damages for any additional losses incurred.
Gross negligence clause with provision for mutual waiver of liability
This version applies to mutual waiver.
Both parties agree to waive liability for ordinary negligence, but agree that gross negligence will result in full liability for the responsible party. Both parties agree to assume full responsibility for any third-party claims arising from their respective grossly negligent acts.
Gross negligence clause with provision for dispute resolution in case of gross negligence claims
This version applies to dispute resolution.
In the event of a third-party claim arising from gross negligence, the parties agree to engage in good-faith dispute resolution processes, including mediation or arbitration. The arbitration decision will be binding, and any resulting damages will be paid by the party found to be grossly negligent.
Gross negligence clause with provision for setting the standard of care
This version applies to setting the standard of care.
Both parties agree that the standard of care required under this agreement will be consistent with industry norms and practices, with a higher level of caution and diligence required to prevent acts of gross negligence that could lead to harm or financial loss.
Gross negligence clause with provision for penalties for gross negligence
This version applies to penalties.
In the event of gross negligence, [Party B] will be subject to penalties, including fines and the payment of all direct and indirect costs resulting from the negligence. These penalties will be in addition to any indemnification or damages awarded under this agreement.
Gross negligence clause with provision for review and modification of the agreement due to gross negligence
This version applies to review and modification.
In the event that gross negligence is identified during the performance of this agreement, both parties agree to review and modify the agreement as necessary to address the root cause of the negligence. Any necessary adjustments to work practices or timelines will be made in good faith to avoid future negligence.
Gross negligence clause with provision for risk management strategies
This version applies to risk management.
[Party B] agrees to implement appropriate risk management strategies to minimize the potential for gross negligence. These strategies will include regular audits, training, safety measures, and compliance checks to ensure that all operations are performed with due care and diligence.
Gross negligence clause with provision for corrective action by [Party A]
This version applies to corrective action by [Party A].
If [Party A] identifies any actions by [Party B] that could lead to gross negligence, [Party A] will notify [Party B] immediately and request corrective action. If [Party B] fails to act within the specified time frame, [Party A] may take corrective action itself and hold [Party B] responsible for all resulting costs.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.