Safe harbour provisions are legal safeguards that protect an entity, such as a business or individual, from liability or penalties, provided it has acted in good faith, followed regulations, and made reasonable efforts to comply with the law. These provisions are designed to encourage compliance by offering assurance that penalties will not be imposed if an entity follows prescribed guidelines or standards. Safe harbour clauses are commonly found in areas such as tax law, intellectual property, and corporate governance, allowing entities to avoid legal consequences as long as they can demonstrate reasonable diligence and intent to follow the rules.