Every business owner dreads lawsuits. Not only do they mean wasted time, but they can also cause significant expenses. Having to contact legal counsel can be expensive, even when your business didn’t do anything wrong. Can having customers sign a waiver help you avoid lawsuits?
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Do Waivers Prevent Lawsuits?
As far as whether a waiver will block lawsuits against your business, the answer is no. Even someone who has signed a waiver can still sue you. At the same time, with a signed waiver in hand, you have a much stronger legal position.
In addition, using waivers does discourage lawsuits. After all, if people know ahead of time that they’ll probably lose the case, why would they go through the hassle and expense of starting a lawsuit? The costs of hiring a lawyer are just as expensive for them as for you.
Should Your Business Use Waivers?
Not all businesses need to have waivers ready to go. For example, a retail store isn’t going to have every person who walks through the door sign a release form before they buy products. That’s why stores have liability insurance instead.
On the other hand, if you offer services that have an element of risk or make injuries more likely, liability waivers are practically essential. Here are some examples:
- Tour businesses
- Dive shops
- Resorts
- Equipment or vehicle rental businesses
- Wedding venues
If your business offers similar services, you should have every customer fill out a liability waiver or release form. You don’t want the responsibility if the person makes a mistake and injures themselves.
How Do You Use Liability Waivers?
If possible, have customers sign a waiver as soon as they make a reservation. In any case, you need a signed waiver before allowing customers to participate in any activities or use your facilities.
With electronic waiver software, such as Smartwaiver, it’s relatively easy to send and manage liability release forms. You can create a customized waiver that addresses your business’s needs, and then send it via email to customers. Once the client returns the signed form, you’re good to go. You just need to keep a copy of the document for your records.
How Do You Get Customers To Fill Out A Waiver?
Make it clear to customers ahead of time that they can’t use your services without signing a release. That way, if they don’t want to assume the liability for potential injuries, they can simply choose not to participate.
Activities such as scuba diving, skydiving, kite surfing, or boating all carry a measure of risk, and it’s not fair for your business to be liable for accidents that clients are responsible for. As long as you handle the waiver process with tact and professionalism, the majority of customers are happy to sign without problems.
What Does A Liability Waiver Need To Be Legally Binding?
Keep in mind that your waiver needs to meet certain standards to be a trustworthy legal document. When customizing your form, pay attention to the following details.
Easy To Understand
A key requirement for waivers in court is that a reasonable person can understand the language. Otherwise, the person can argue that they didn’t know what they were signing. Make sure the document spells out the terms in everyday words, not legal jargon.
Thorough
While a good waiver is simple, it should also be informative. Explain key points, such as:
- Description of activities or services
- List of possible risks, including death
- Mention the location of the provided services
Many waivers also include terms such as “all risks known and unknown” to cover injuries in addition to your list.
Reasonable
You also have to be reasonable in the liability protections you seek. The basic idea is that customers agree not to hold you responsible for accidents or injuries when they use your gear, equipment or services. Don’t try to add countless provisions, such as having the person pay fees in the case of negative publicity.
Signed
Always check filled-out forms for a signature. Unless the person signs, the document isn’t enforceable. You can avoid problems with a simple reminder, such as: “Hey, it looks like you forgot to sign this form by accident. Can you send it back when it’s filled out? Thanks!”
Waivers may not completely prevent lawsuits, but they do protect your business. Take the time to create one right away.
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