What Does the Waiver of Liability Mean?

If a company’s products or services involve risk, the company must use a waiver of liability if necessary. However, it should contain specific elements in order to remain in effect. It could be a simple game in paintball or a martial arts tournament. All of these activities present some element of risk.

It is important to admit this risk, and it is even more crucial to get it in writing. Subsequently, people often sign liability waiver forms that release the party from responsibility in case something happens. The liability waiver forms protect businesses by notifying them that the client is aware that he is responsible for the possible risks that he takes on himself.

What is a Liability Waiver

A liability waiver is a form of contract signed by a party that releases the other party from liability for damage or injury. The signed party may be responsible within the scope of his involvement in the activity or event, for example, bungee jumping, skydiving or sports activities. The waiver releases the person responsible for conducting such activities from liability if the client is injured in any way. This means that if you are injured during a bungee jumping excursion, you agree not to pursue a personal injury case against the instructor or owner of the bungee jumping company.

This is a mandatory legal document. It has two main purposes:

·         it informs participants of the “inherent risks,” namely the potential risks specific to an activity that we know about and can adapt to;

·         it allows participants to release the company from liability related to these risks.

After signing, it prevents the participant from suing the company in case of damages or losses, effectively transferring the responsibility for injuries from the company to the customer.

This form is typical for companies whose business directly involves some risk. It is an effective waiver tool that protects businesses with elements of risk. For example, if a company offers horseback riding lessons, it is recommended that clients sign a liability waiver form before getting on a horse.

Basic Information for the Waiver

The forms of liability waiver may vary depending on the type of company’s activity and industry, but there are certain norms that are common to most forms. Let’s look at the most important information that needs to be included in a waiver of liability form:

• A caution to participants – a statement informing readers how important this document is. It is usually placed at the top and highlighted, so it is difficult to miss it.
• Operational risks – All the possible risks associated with the activities or services the company provides are described. The more detailed the information is described, the better it is.
• Voluntary acceptance of risk – a statement that the signing party fully understands the risks involved and voluntarily accepts them.
• Release clause – a clear statement saying that the company will not bear the burden of liability in case of harm or loss. This is the most important part of the liability waiver form.

At the end, leave some space for the client’s signature and date. This not only shows that he has read the form and agrees with it, but also gives the document full legal effect. This form protects companies from liability for simple negligence, but it does not release them from responsibility for serious carelessness or intentional injury.

To simplify this process, it is also possible to use online waiver software with an electronic signature, such as Pandadoc. In this way, customers can legally sign a free online waiver remotely with the click of a button, therefore there is no need to worry about printers, scanners and filing cabinets in this case.

In order to draft a document correctly, it is important to have knowledge of the legal framework. Before proceeding to the development of a project, it is necessary to familiarize yourself with the current legislation, so that it is enforceable, or it is better to ask for help from a lawyer. After all, the further fate of the business depends on the correctness and clarity of the drawn up document.

What Are the Areas Where Liability Waiver Is Used

Risks are present in many areas of business, and it is impossible to list them all, so let’s focus on the most relevant and popular: skiing, amusement parks, tourism business, massage services, horse riding lessons, diving, as well as the provision of software services. It is also possible to sign a digital liability waiver.

Let’s focus in more detail on the provision of software. Developed and implemented software always works in a stable mode, if the state of the PC and its input data do not change. But if users misunderstand the functioning of the system and make mistakes in use, it may lead to incorrect operation of the system or its failure. Therefore, software developers may sign a waiver software with the client to protect themselves from loss-making compensations.

Every business that engages in activities with elements of risk should take care and protect their business, which means it is important to use a well drafted liability waiver.