Which type of clause protects one party from liability for the actions of another?

A hold harmless clause is designed to protect one party from liability for actions taken by another party. It creates a legal agreement where one party agrees not to hold the other party responsible for any loss or damage that may occur as a result of certain actions, events, or conditions. This type of clause is often used in contracts to allocate risk and prevent legal claims between the parties.

In contrast, an indemnity clause generally involves one party agreeing to compensate another for certain losses or damages, which may include liability incurred by the other party. An exemption clause provides a party with the ability to limit or exclude liability for certain actions or events, but it does not inherently shield one party from the consequences of another’s actions in the same manner. A waiver clause involves relinquishing a known right or claim, which does not necessarily provide protection from liability in the context of actions by another party.

Thus, the essential purpose of a hold harmless clause is to offer explicit protection from the liabilities stemming from another party's actions, making it the correct answer in this scenario.