Liability Waiver
- CS Shirish Bhootra
- Apr 22, 2023
- 4 min read
Written by Malla Greeshma, Student
Introduction
A liability waiver is a legal contract that acknowledges the risk to the customers before the risk activity, and the customer is accepted all the terms and conditions of the agreement. It protects the company from civil suits and other compensations for injuries, damages, and other losses from the activities of the risks.
What is a liability Waiver?
Liability waiver, also known as waiver of liability and hold harmless agreements, is legal liability among the parties the participant agrees, in advance of an incident occurring for harm relating to various risks, including a company's negligence and made aware of the inherent and other risks associated with the activity. A liability waiver binding document gives awareness about the risk to the customer and protects the company and business from civil suits.
For example
If ‘A’ wants to climb a mountain, so he approaches B’s company to participate in the activity, so B’s company makes a contract between both of them and gives awareness about the risk before the activity.
When should you use a liability waiver?
The Liability waiver is used mostly by the business or company to protect themselves from civil suits and damage claims from any inherent risk activities.
A liability waiver is mainly used in.
Program in the adventure space.
Travelling, participating in an adventure activity like mountains, sky rides, etc.
What are the different types of liability Waivers?
General release of liability
A General Release form is often used when one person claims against another party. This general release liability covers all the civil claims filed against the most common dispute cases.
Motor vehicle accident
If the person is responsible for the accident, he gives compensation to the affected person. However, here both parties are at fault. Sometimes, either party agrees to settle the issue without filing lawsuits and other claims. This form can be used to settle disputes for any current or future injuries and damages.
Activity waiver
If people agree in a contract to acknowledge dangerous activity before the risk event occurs by signing the waiver, they agree not to take legal action if something goes wrong.
Damage to personal property
If sometimes damages happen to the home, apartment, or other personal belongings, use this form to create an agreement for one party to pay for repairs while the other party renounces the right to seek further legal remedies.
Mutual release
In some cases, both parties are responsible for causing damages or harm. Rather than blaming each other and arguing with each other in court, the parties accept it and give up the legal right to sue for damages are injuries.
Personal injury
Personal injuries are the release of liability after someone gets hurt because they signed the contract before the activity occurred.
Liability waivers include
A legal document is more important than any local contract, so drafting the contract with rules and using clear language.
• Inherent Risks
Inherent risks are those that people take when engaging in specific activities.
• Assumption of Risk
The assumption of risk indicates that the participating customer understands the risks or associated dangers of using company products or services. This will help to reduce the participant's claim that they don’t know about the risks before the activity.
• Release Clause
Release clauses state that the company doesn’t feel responsible for the liability burden after any harmful event occurs accidentally, mistakenly, or negligently. The company should mention this clearly there and straight forward to the customer to understand the terms and conditions of the agreement and their rights of them.
• Indemnification
Indemnification clauses are acknowledgements made by participants. They agree to pay the legal costs and attorney's fees if their actions result in someone filing a lawsuit against the company. So, this is an important essential component to knowing about lawsuits from third parties.
• Insurance
The liability waiver should clearly state that the company liability insurance policy doesn’t cover participant damages.
• Choice of Law
Choice-of-law assigns the venue and forum laws by which the legal liability waiver recognizes. Since here the parties may live in separate geographic locations, this helps you clear any doubts or confusion regarding applicable rules and regulations.
How to Write a Liability Waiver?
Writing a liability waiver may seem like having a contract drafting can effectively reduce the chance of making legal mistakes.
Include the identification of the parties for better communication.
Include all inherent risks associated with your products or services
Consist of all associated future threats that may arise after the activity
Consist of compiling company liability insurance policies for the customer
Consist of which governing laws you want to apply to company waivers
The sign in the liability waiver is needed that the customer agrees to the understanding of the agreement.
Conserve copies of the signed liability waiver agreement and other supporting evidence for any further disputes.
Conclusion
A liability waiver is commonly used in the risk management areas like Traveling, a program in the adventure space, participating in adventures activity, Bungee jumping, or operating motor vehicle races, etc., so this liability waiver is also known as a harmless agreement for the company or business to protect themselves from the civil suits and damages caused by accidentally, mistakenly and negligently to the customer and if any damages happen to a customer, themselves liable for damages or injuries by the activity, even they are responsible for the third party damages also, here company is not responsible for any damages or injuries by the liability waiver.
Reference
https://www.ehs.ucsb.edu/programs-services/risk-management/waiver liability
https://legaltemplates.net/form/release-of-liability-waiver/
https://www.adobe.com/sign/hub/document-types/what-is-a-liability waiver-form
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