A liability waiver form is a classic agreement between the parties that, in the event of a certain occurrence, one of the parties waives its legal rights and will not take legal action against the other party. In other words, a company that provides certain services associated with the risk is released from liability. This document is quite important in business, so it is necessary to draw it up correctly in legal terms so that there will be no trouble faced in the future.
If a company conducts financial activities in the field of services, which are associated with risk, it must definitely take advantage of a waiver of liability.
Basic Purpose of the Liability Waiver
The main reason for using a waiver is so that organizations that conduct activities associated with the risks under unfavourable conditions can protect themselves against lawsuits and compensation payments. Competently drafted binding legal documents can provide maximum protection for the activities of the company, as well as its reputation. Its point is that the clients or employees assume all possible risks and agree to waive the responsibility of the organization for the damages caused, which are directly related to different kinds of exposures. A signed release of liability form protects the company from losses in the form of compensation payments if a customer is injured. Let’s look at the main areas of business that are directly related to risks:
- Ski recreation – such activities are directly associated with risk because skiing requires certain skills, experience, excellent physical health, and responsibility from ski enthusiasts. Such resorts may efficiently use waivers in their operations, handing out a release from liability template to each client to protect their business from legal actions in the case of injuries.
- Amusement parks are a rather dangerous option for recreational activities, so every operator does its best to protect its operations and includes a liability waiver in the ticket sales process.
- Tourism business – any journey whether by car, plane, train or bus is always subject to risks. And travel operators use these types of documents in their activities.
- Massage services may seem to relate to a natural procedure that should bring health benefits but every patient may have hidden unknown conditions or past injuries that can cause trouble and aggravate pre-existing problems. To this end, massage therapists can use liability waivers to protect themselves from possible legal actions by their clients.
- Software – it always works in stable mode if the PC condition and its input data do not change. However, there are users who misunderstand the functioning of the system and make errors in use, which can lead to incorrect operation of the system. That is why software developers can offer their customers to sign a document generated by waiver software like Pandadoc to protect themselves from paying compensations that could result in a loss.
This is only a small fraction of the areas of activity that are directly related to risk.
Every company engaged in activities associated with risks should take care of and protect its business, which means using a competently drafted liability waiver. It is recommended to prepare it with the help of a qualified lawyer, as it is quite difficult to do this task without knowing a lot of legal peculiarities. Such actions can protect against legal claims and litigation, both in the short term and in the future.
Signing a waiver provides some protection, thereby shifting the process of gathering evidence of the company’s fault to the customers. However, as you understand, it does not provide full protection. Signing such a document should alert the client that they are engaging in potentially unsafe actions, so the waiver form should include text that covers all types of risks in legal terms.