If you’re running a business that carries a risk to your customers, it’s a good idea to have a waiver in place.

A waiver will protect your business from risk if anything happens to your customers as a result of your business activities.

A waiver could be an important document for many businesses. So let’s go through why you might need it!

What Is A Waiver?

A waiver is a legal document that your customers sign before engaging with you. It proves that they are aware of any risks that may be associated with your business.

Sometimes, a waiver is also referred to as a ‘disclaimer’ or ‘release form’. 

Put simply, a waiver does two things:

  1. Informs your customers of the risks of your business
  2. Prevents your liability from these risks

When Do I Need A Waiver?

If your business offers goods or services that have risks associated with them, you should think about having a waiver in place to ensure your customers are aware of these risks.

For example, if your business is involved in any recreational or high-risk activities, a waiver is a strong way of limiting your liability if anything bad were to happen.

It’s important to understand that a waiver does not replace your customer contracts (such as your terms & conditions or your service agreements). 

A customer contract is a much more comprehensive document, which can include terms around payment, delivery, supply, termination and other rights.

In many cases, a waiver can simply be incorporated into this customer contract.

However, if your business involves high-risk or recreational activities, having a stand-alone waiver is a safer option.

This is because, in the eyes of the court, having a separate waiver signed by your customer can make a stronger case that the customer was aware of these high-risk activities (that is, if you do actually end up in court).

How Do I Use A Waiver?

A waiver is a type of legal document called a deed.

Unlike usual contracts like agreements, a deed cannot be signed electronically. A deed requires a physical signature, as well as a witness to that signature.

Therefore, if you’re thinking of getting a waiver for your business, it’s important that you understand how it needs to be executed.

This is why most businesses with recreational or high-risk activities (such as gyms or electrical scooter providers) will have a physical waiver that the customer needs to sign before engaging.

Need Help?

If you’re not sure whether you need a waiver, or if you’d like to explore other ways to protect your business from risk, we’re here to help!

Feel free to reach out to our friendly team on 1800 730 617 or at team@sprintlaw.com.au

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