Business is always a risk, especially if the field of activity is directly related to injury-prone situations. For example, when services are provided to teach horseback riding, gymnastics, or rock climbing. There is no less risk in organizing holiday or entertainment events.
Every client who has been injured thinks about compensation. This explains the huge number of lawsuits against the organizing companies. To protect themselves from such actions by their clients, organizations, and participants of upcoming events sign a waiver of liability.
Liability Waiver Form: What is This?
A liability waiver form is an official document that spares business owners from the risks associated with their business. If a customer is injured while using the company’s products, goods, or services, the business owner will not be penalized. All responsibility rests solely with the participant of the event.
However, the contract applies only if the injury is caused by negligence. In the case of gross negligence or intentional injury, any judge will hold the business owner liable for moral and material damages.
The same applies to the release of liability. However, there are some subtleties. For instance, the liability waiver means no liability at all, and in the case of a release of liability, it can be assigned to a third party.
Basic Points When Drafting a Release of Liability Form
While drafting a release of liability form, it is necessary to use a few points, which are considered basic. The other sections are added as desired. Important components include:
- waiver of the right to file a claim. The client who signs the agreement releases the company from liability in case of injury, illness, death, or financial loss. This is due to the fact that the participant is well aware of what s/he is taking on. S/he is aware of all the risks;
- acceptance of risk. At this point, the client assures that s/he is of sound mind and fully accountable for his/her actions. S/he understands what can happen during the event. The signatory assures that s/he will not hold the business responsible if adverse events occur;
- indemnification. The client affirms that s/he will not require the business to pay damages to health or property. Also, this clause includes payment of attorney’s fees;
- immediate compensation for damages. If an extraordinary situation arises, no one will demand that the business pay for all expenses aimed at curbing the negative moments;
- medical consent. In this clause, the client confirms that s/he will bear all costs related to the treatment and recovery after the occurrence of adverse effects;
- understanding and confirmation. As a rule, this is the last point before the document is certified. The client confirms that s/he has read and accepts all provisions of the contract.
Some companies supplement the contract to protect themselves from all sides. For example, they introduce a severability clause. Its peculiarity is that each provision of the contract has to be considered separately. And if one of them doesn’t take effect or turns out to be invalid, the other clauses can be used to resolve legal issues.
When Does a Waiver of Liability Enjoy Full Legal Validity?
If you’re not sure if your document will be correct and fully enforceable, use the release from liability template. Use the template to avoid mistakes and make sure your agreement is as good as it can be. Keep in mind the following important tips:
- how legal this type of document is in your country/city/state;
- the waiver should be drafted as a stand-alone document;
- the agreement must be closely related to your business. photocopies taken from someone else’s agreement (from another line of business) will not work;
- all risks associated with your business should be described in full;
- the wording should be clear and concise, understandable to others;
- only adult persons should sign the document.
Make sure that all points are met. Then you will protect yourself from lawsuits filed by your clients.
Waiver Software: Advantages
Waiver software enables you to streamline your document flow and significantly reduce the time it takes to create and sign agreements. Software like Pandadoc has proven its efficiency in the business sphere. This is due to the simplicity of perception, and the possibility of using it on computers and smartphones. Thanks to the library of templates, you can open the necessary agreement, fill it with personal data, verify it, and send it to the client to sign.