It’s likely that you have had times where you’ve had to sign a form before undertaking a new activity. Although it feels as if you’re signing your life away, there’s a good reason that these documents exist. Whether it’s a simple game of paintball or a martial arts tournament, these activities involve an element of risk.
Acknowledging this risk is important – and even more important is that this is in writing. Subsequently, people often sign liability waiver forms which indemnify a party from liability in the event that anything happens.
This article will cover what a liability form is, and how it can protect your business from legal action.
Businesses that provide services which involve risk need to ensure that:
- Your customer understands the risks involved in undertaking the activity
- Your customer is still willing to undertake the activity
A liability waiver is a legal document which protects someone who wants to reduce their risk of liability. Reducing liability is important for businesses, especially those that facilitate risk-related activities.
This is in case there are any accidents or injuries that happen while a person is doing the activity.
Your customer will ordinarily be able to commence legal proceedings if harmed on your ‘watch’. A legal action such as this would likely result in the business having to pay damages to the plaintiff.
However, signing a waiver of liability means that a person is generally waiving their right to sue you or your business.
Why you need it
As a business owner, it’s in your best interests not to be liable when an incident occurs on your premises or during your event. Liability waivers shift the responsibility from your business to your customer.
However, there are some exceptions.
If you were negligent, you can still face legal action in the event that a person is injured or killed.
You run a bungee jumping business and have for many years. However, in that time you have not updated your equipment, more specifically the harnesses which ensure that people don’t fall. A customer does the jump and the rusted harness snaps. The customer suffers multiple severe injuries and has to pay $22,000 in medical and surgical fees.
In this case, your business would be liable for injuries sustained by your customer. This is because not updating equipment which is instrumental in ensuring your customer’s safety is negligent. By not ensuring your equipment is safe, your customer is put at risk.
You cannot waive liability for not having various alarms such as smoke detectors or fire escapes in place.
If your service is considered ‘crucial’ and causes harm (such as if the water supply is contaminated), you would unlikely be able to rely on a liability waiver.
Superior bargaining power
Having superior bargaining power could easily pressure or force your client into blindly agreeing to their terms, of which could be a liability waiver. In scenarios like this, there is the potential for these waivers to not stand, most likely pending a court decision.
Many public sector institutions have specific statutory duties which cannot be delegated away.
Liability waivers need to be clear in their expression and their intentions. They must be specific and not overly vague so as to generalise
Fraud or misrepresentation
If, for example, your rock climbing business advertised assisted climbing but forced its customers to free climb.
In general, it is always best to have a liability waiver form in place. Not only will this protect your business, it will also protect customers by ensuring that they fully understand the risk they’re engaging in. This is one instance where it’s better to be safe than sorry.
If you’re involved in sports-related matters and require a liability waiver form, it is important to seek advice with a sports lawyer. Further, a civil litigation lawyer can advise you on negligence and liability in a broader context.
Still unsure about liability waiver forms? Contact a LawPath consultant on 1800 529 728 to learn more about customising legal documents and obtaining a fixed-fee quote from Australia’s largest legal marketplace.