Liability waiver forms explained
As a small business owner liability waiver forms are critical to protecting you and your business.
You’ve probably seen a liability waiver form before. If you’ve ever joined a gym or signed up for a physical training session, you likely signed an activity waiver before working out. Similarly, if you ever rented bicycles or went on a family trip to the corn maze, these situations probably called for a liability waiver form.
This document is a special type of contract that is meant to do two things:
By signing on the dotted line, the attendee agrees both stipulations have been met on the release agreement.
The question then becomes: Why do you need to know about liability waiver forms?
As a small business owner, you’re on the other side of this contractual agreement. You’re now the one asking participants to read through the rules, guidelines, and waiver release form, and sign at the bottom.
To that end, there are many different types of liability waiver forms. These include but are not limited to:
Here’s the industry secret: These are all different names for the same thing. The language might vary slightly (an event liability waiver will be more specific to events, while a legal release of liability form might use more general language), but these are still doing two things: educating the signee and waiving the right to legal claims to avoid a lawsuit.
When do businesses need these waivers signed?
As a small business, you might not understand when a liability waiver form would ever be needed. Truthfully, they’re helpful more often than you might imagine.
First, let’s begin with the obvious scenarios: small businesses with inherent risk.
If your services involve physical activities, such as a fitness center or rock climbing gym, injury is going to be a major liability factor. Ensuring members participate in an introductory safety class and sign a liability waiver form can help them understand the risks and safeguard your business should any mishap occur.
If you own an ice skating rink or a private pool, this comes with the risk of accidents that could involve medical expenses. While participants see a fun daytime activity, you see a long list of potential liabilities as the service provider.
If your business involves working with young children, such as a youth ballet company, a liability waiver form can help cater to parents who are particularly protective (and litigious) as bodily injury may occur.
But small businesses don’t need to be in an injury-prone industry to use liability waiver forms. In fact, almost any business can find themselves in need of these contracts. Imagine these scenarios any business might find themselves in:
If you’re selling tickets to an event or conference online, you can (typically) have them sign the waiver at the same time.
The language in the liability waiver form is to protect you from third-party claims that you realistically shouldn’t be held accountable for. To that end, the attendee should know what they are responsible for when signing. Make sure to follow these tips and guidelines when drafting your liability waiver form:
This will help protect your small business on top of the coverage you gain from having the right insurance. Speaking of…
Many business owners make the mistake of conflating the liability release form with general liability insurance. These two are not the same and do not provide the same level of coverage:
If general liability insurance and professional liability insurance is what you’re after, then meet Thimble. As the ideal choice for small businesses and independent contractors, we offer affordable policies with on-demand coverage. This means you can purchase insurance by the hour, day, week, or month. It’s insurance that works when you do.
60 seconds is all you need to go from zero defense against liability to having a Certificate of Insurance on hand.
Pairing this coverage with a liability release form will ensure you have the protection you need should any legal claims be made against you. That’s Thimble—covering all angles.
Our editorial content is intended for informational purposes only and is not written by a licensed insurance agent. Terms and conditions for rate and coverage may vary by class of business and state.