Liability waivers protect your business against lawsuits for negligence. Find out how to use one for your business.
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updated September 1, 2023 · 3min read
Many business owners are concerned about being sued by customers or clients for injuries that happen on their premises or while engaged in the activities or events their business runs. The best way to protect yourself from such lawsuits is to create a hold harmless agreement (HHA), also called a liability waiver or release.
A liability waiver is a document your clients sign to indicate they understand all the possible risks involved in entering your premises or using your services. If your business offers kayak tours, for example, risks might include drowning, injury, hypothermia, sunburn, exposure, getting lost, and so on.
The waiver provides complete notice of all the possible scenarios of what could go wrong so that clients can provide knowledgeable consent to participate. By signing the waiver, the customer acknowledges they received notice, they know what could happen, and they won't hold you responsible should something go wrong.
Hold harmless agreements are not always valid, so it is important to work with an attorney or liability waiver template when creating yours. Situations where such documents may not be valid include:
Even if you have your customers sign a liability waiver, it won't protect you if your business is grossly negligent, although it may protect you in most circumstances against ordinary negligence.
Negligence means a failure by your business to take the reasonable care a reasonable person in a similar situation would take. Ordinary negligence is often unintentional and caused by oversight. For example, if your staff is unaware of spilled water on the floor of your gym and a member slips and falls, a waiver would most likely protect you.
Gross negligence is an extreme indifference or disregard for the safety of others, such as not providing a lifeguard at your gym's pool and someone drowns. In this instance, a waiver would not protect you.
You can create a separate liability waiver or insert a liability waiver clause into a contract. Both options are valid.
The waiver should:
Although there are ready-made HHAs available online, they may not work in all jurisdictions or situations. To ensure your document provides you the best protection possible, be sure to consult with an attorney.
by Brette Sember, J.D.
Brette Sember, J.D., practiced law in New York, including divorce, mediation, family law, adoption, probate and estat...
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