As attorneys, we completely appreciate when business owners contact us to inquire about the kinds of contracts that they should have in place to protect their business. Ranging from vendor contracts to employment contracts, there are plenty of gray areas that need to be addressed to ensure that the business has terms in place to reduce its exposure, risks, and liabilities. One such term is a waiver of liability, and recently, we have seen a tremendous uptick in the desirability of business owners to implement waivers as they interact with customers or clients, particularly in forward- or client-facing businesses (think, service businesses, retailers, training facilities, etc.).
A waiver of liability is the relinquishment of the customer’s right to seek to hold a business liable for damages suffered by the customer. You may be familiar with a waiver of liability if you have ever gone skydiving or joined a gym or attended a fitness class. In advance of engaging in the activity, the business will require the customer to sign such a waiver and give up their rights to pursue a claim for injuries sustained by way of the activity.
These waivers are typically enforced by courts, but there are certain instances where a waiver is unenforceable. If a business owner is negligent and fails to exercise reasonable care in the performance of the activity for which the waiver is required, or another liability exists that has no connection with the specific activity (think, a customer trips and falls in a parking lot because of the owner’s failure to maintain the lot with reasonable care), then the waiver may not be enforced because it does not cover the ultimate activity that resulted in injury.
Waivers can be included within greater contracts or can be used in standalone situations. Also, waivers can be created and completed online as well, which helps efficiently obtain these waivers from prospective customers and clients. For business owners, it is important to consult with an attorney to determine whether a waiver of liability is appropriate for the activities that you engage in with customers, thereby creating a pocket of liability.
Disclaimer: The information contained in this post is not, nor is it intended to be, legal advice. You should consult an attorney for advice regarding your individual situation. We invite you to contact us and welcome your calls and communications. Contacting us, however, does not create an attorney-client relationship.
