The competitiveness of a company depends on all the costs that a business incurs. That is why entrepreneurs seek to minimize risks. One of the ways is the release of liability forms. Previously, this method was used by large companies only. Nevertheless, smaller enterprises have also come to appreciate the advantages of using the document. The main advantage is that it covers different types of risks.
What is the Release of Liability Form?
The release of liability form is a document that is filled out by the company and the client or two organizations. With valid seals and signatures, the agreement releases the parties from liability for errors resulting from the use of products or services.
If a customer, buyer, or service beneficiary suffers damages, the company is not liable for it. It does not accept any claims, having completely secured itself at the initial stage of cooperation.
This is relevant in the field of active entertainment, sports, and recreation. For example, a client of the organization can be injured both during a leisurely horseback ride and at a large-scale motorcycle race. The injured person will certainly try to get compensation. However, companies don’t want to compensate for the damage caused, so when they sign a contract for services, they provide a release from liability template to sign.
Clients are not recommended to take any risks. If such a document is signed, it is better to use the service subject to the availability of insurance. This option is the best choice, and in the event of an emergency situation will enable the affected party to get at least some payouts.
Why Do Business Owners Sign a Liability Waiver Form?
A liability waiver form is an official document that allows business owners to save their budgets. Does this mean that the agreement is only used by dishonest entrepreneurs? Is it for those who don’t want to protect the client when providing a service? Of course, such a point cannot be ruled out. However, for the most part, every business owner strives to do everything possible to preserve the health and peace of mind of the client.
Nevertheless, it is impossible to foresee absolutely everything. If we consider horseback riding, it requires a young healthy horse with a calm temperament, as well as an experienced instructor. However, problems cannot be eliminated even with all the requirements being met and regular checks of the animal conducted by a veterinarian. For example, the horse will stumble, and the rider will not manage to stay in the saddle. There is no violation on the part of the service provider but all the blame will be laid on it. To avoid such situations a liability waiver form is signed.
Release and Waiver of Liability: Basic Features
A waiver of liability is a document where the business owner is not liable for natural risks when it is signed. However, the business owner may still face legal action because of negligence on his or her part or on the part of an employee he or she hired. It all depends on the jurisdiction where the agreement is signed.
Such types of agreements cannot be used in the following cases:
- risk to life (medical activities);
- intentional misrepresentation;
- dependent position of one of the parties (teacher-student, employer-subordinate).
For a document to be valid, all risks must be specified, including those that are indirectly related to the activities. There must be no fine print or other things that could be interpreted as deceiving the client.
As for the release of liability form, it is a similar document. The same items are filled out here. The difference is that in this case, it is possible to transfer liability to a third party. That is, the business owner will not compensate for the damage, while another company will do it instead (for certain reasons).
Waiver Software for Competent Drafting
If you have never had to fill out a release of liability form, use specialized software. This will eliminate mistakes when compiling the document because templates are already built into the library. All you need to do is enter relevant information about the company and the client, and, if necessary, delete any irrelevant points.
One of the most popular waiver software options offered in the market is Pandadoc. Its advantage is an intuitive interface, and the possibility of using it on computers and smartphones. It is distributed free of charge, so you can experience the advantages of working with the software without any investment.
PandaDoc can be integrated into the corporate software for synchronous operation. In this case, you won’t have to reinstall all existing software, so there will be no unplanned downtime.