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The video tutorial explains hold harmless language, which transfers liability from one party to another to absolve them from responsibility for potential risks in a contract or service. It essentially states that certain parties will not be held liable for injuries or damages. Hold harmless clauses can be unilateral, where only one party agrees not to hold the other liable, or mutual, where both parties agree to this stipulation. Agreeing to a hold harmless agreement indicates acceptance of specific risks associated with a job or service. When drafting hold harmless language, it is important to review the terms carefully.