Life is full of risks and uncertainties, is it not? The unforeseeable future is part of the underlying premise that fuels insurance systems all over the world. There are many different kinds of insurance products that range from life and medical to those liability insurances. Today is for tackling liability insurance in particular.
Liability insurance is the kind of risk financing that shields the purchaser or the insured from the liabilities posed by lawsuits. It stipulates that the insured is protected or covered for claims within the realms of the insurance policy.
Liability insurance is specifically designed to protect against third party claims for damages or loss whether due to contractual or intentional liability. The insurance liability coverage varies depending on the nature of the liability insurance.
Take for example a civil liability insurance which is commonly found in England and other European countries for professionals, clubs and even sports teams. While the civil liability insurance policy is in force, damages resulting from the conduct of the insured and claims against the insured will be paid for by the policy. Civil liability insurance also includes public liability, professional indemnity (error and omission) and product liability.
It is important to note that the price of liability insurance varies depending on the purpose and the extent of the insurance policy.
A general liability disclaimer is usually what any attorney would suggest to anyone who owns a business or practice that often deals with third parties. Liability disclaimers are otherwise called release of liability form, waiver of liability, disclaimer agreements and are commonly found in user agreements.
A liability disclaimer usually contains the following information:
- Party A (provider of activity/service/product, organization, etc.)
- Party B (participant, user, individual responsible)
- Signature lines
- Dates (signing and effectivity)
- Contact information of both parties
- Type of product, activity or service provided by Party A
- Conditions, stipulations and limit to liability
- Relevant laws governing the agreement
- Notations from the lawyers (as necessary)
At some point in our lives, we have probably been made to sign at least one liability disclaimer, whether at the amusement park, the gym or even online before installing an app.
Here are some examples:
- [Party A] does not provide liability insurance for the protection of individuals, groups, organizations, businesses, spectators, or others who may participate in the [activity]. It is understood that your participation in said [activity] does hereby release [Party A] from any and all actions, claims and demands for damage, loss or injury sustained by participating in the [activity].
- I, [name of party B], of sound mind and body do hereby declare that I am participating in the [event] out of my own volition. The risks involved in this participation are within my knowledge and as such, I understand that [Party A] is not liable for any loss, damage, or injury that this event may cause.
- The undersigned agrees and does hereby release from all liability and hold harmless [Business] and any of its employees representing or related to the [Business].
This liability release is for any and all
liability for personal injuries, including death and property losses or damage in connection with any activity or accommodation of the above mentioned business.
The undersigned does hereby further agree to abide by all the rules and regulations that are presented by [Business].
Informed Consent Form
A general release of liability form is to always come with a consent form or lien waiver that covers the details of a certain product, service, or activity. Informed consent form is more crucial for children under the legal age, participating in different events such as sports competitions, travel and even educational trips. A letter of consent to travel is usually required for minors who are travelling by themselves or without a parent or guardian to state that they have permission and the companions, travel agency and/or mode of transportation will not be liable for the minor.
Type of Waiver Forms
There are various types of waiver forms to suit different events. Here are a few of them:
- Sports Waiver Form – for participants (athletes, referees, scorers, ball kids, etc.) of any kind of sporting event. This commonly focuses on the risks of injuries or harm.
- Injury Waiver Form – often associated with sporting venues and sporting events, but can also be used in amusement parks, construction sites and other potentially hazardous work environments.
- Medical Waiver Form – usually signed before an operation is performed and commonly comes after a thorough check of medical history and performance of tests. This form will often state that the information given are true and correct and that the patient has been informed of the procedure and the risks involved but wishes to push through with the medical procedure.
- Hold Harmless Agreement – as the name implies, this type of waiver form simple holds one party as harmless and not meaning to hurt the other party, as such is not liable for any future claims.
Model Release Form
Release forms are also commonly part of liability insurance under the premise that information is vital and can be used for and against a certain person. Here are three kinds of model release forms:
- Media Release Form – an individual gives another person, company or media outlet the permission to use the images, videos, audio files, etc. that he or she owns. Alternatively, this kind of form is also used to grant the use of media containing images of a minor.
- Mutual Release Form – this kind of document lessens the hassle of needing to go to court should a professional or any legal go sour because it allows parties to cut ties amicably under specific premises. A prenuptial agreement is considered to be part of the big umbrella of mutual release documents.
- Insurance Release Form – includes waivers for product liability, event liability and business liabilities.
This is just an overview of the many concepts associated with liability insurance. For further details and costing, it is best to contact a lawyer and an insurance provider.