Safe Harbor

Definition - What does Safe Harbor mean?

Safe harbor is when an entity cannot be sued for liability, or have a penalty imposed as long as it meets criteria laid out by a law or by a legally binding agreement.

Safe harbor also refers to a company intentionally making itself look bad in order to try to prevent a hostile takeover by another corporation.

Justipedia explains Safe Harbor

Safe harbor can be extremely important for certain companies, because it can literally determine whether or not they will be sued. For example, if a law states that companies who predict the weather cannot be sued for making inaccurate predictions, then weather prediction companies cannot be sued for their inaccuracies. Governments may give such companies this type of safe harbor, because without it, such companies may decide to stop predicting the weather due to the possibility of being wrong and being sued.

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