Business owners often are self-appointed risk managers. You identify risks and make informed decisions that benefit your company’s economic health. Liability waivers are a risk-management tool you should consider.
A liability waiver is a simple agreement between you and your customers. A waiver says if they sustain an injury because of your business operation, they cannot compel you to pay them. Waivers do not relieve you of all liability. Rather, they are an important tool for situations that are clearly out of your control.
A waiver is a contract
Liability waivers are not secret, backdoor agreements. They are simple, up-front contracts. Ordinary people sign liability waivers every day. Hotels include them in check-in documents. Gyms place them in membership agreements. You sign them every time you rent a car. You even see brief liability waivers on the back of concert tickets. While liability waivers once were difficult to enforce, they are now more acceptable and accessible.
Waivers must meet guidelines
A stand-alone waiver meets the Uniform Commercial Code definition of a contract. Once your customer signs it, it becomes a “...total legal obligation which results from the parties’ agreement…” If you routinely execute customer or vendor contracts, you can have the existing contract modified to include specific waiver language. Like any agreement, it must meet specific guidelines.
- Your wording and intent must be clear about waiving specific types of legal liability.
- The waiver should be visually clear, not added in small or illegible print.
- An enforceable waiver must have a valid signature of the subject of the waiver agreement.
Liability waivers help you manage risk
When you manage your company’s risk, you should consider using every available tool. You hire professional employees to elevate your company’s standing. You market only quality products and services because you don’t want to risk a bad reputation. You purchase liability insurance to handle your negligence exposures. Your commercial auto policy pays for damage due to vehicle accidents. Performance bonds give your business credibility to help attract new clients. Liability waivers are just another way to manage business risks efficiently.
