Many business owners ask themselves do I need liability insurance for my business if my customers sign a waiver, and the answer is yes. A waiver or release form is a contract designed to shift liability away from the business with the consent of the customer.
Waivers are meant to significantly alter the legal landscape from a place where the business is responsible for a place where responsibility lies more with the customer. However, if a customer makes a liability claim, release forms may not always be enforced. If a business is found grossly negligent, the legal bodies overseeing the claim may ignore the waiver altogether.
That said, it’s possible a waiver could help your business avoid some liability claims. However, consider seeking legal counsel first. Have a qualified attorney draft your waiver and get guidance on how and when to have customers sign the waiver.
Still, waivers are not impervious and may leave your business vulnerable to liability claims. If a customer does make a claim against your business, and the waiver is not enforced, business liability insurance can help cover the costs of the claim.