What does a liability waiver cost? Any business that is seeking protection from liability may ask this question. Let’s explore liability waiver costs and review general information about liability waivers and how they work.
How Much Does a Liability Waiver Cost?
A liability waiver, sometimes called a hold harmless agreement or indemnity agreement, is a legal contract that absolves one or both parties of legal liability for any damages or injuries that occur during a specific activity.
Liability waivers are most frequently used when a business offers a risky or dangerous service or activity to customers – skydiving, for example. When a customer signs a liability waiver, they agree that they recognize the risks involved with their actions and agree to relieve the business of responsibility if any injuries or damages occur.
A well-written and comprehensive liability waiver is essential for a business if there is any risk of potential injury to customers. This agreement could save a business a substantial amount of money if they are ever faced with a liability lawsuit from an injured party. However, courts tend to favor plaintiffs in cases involving liability waivers, so an experienced lawyer must write the contract.
A lawyer who has experience drafting and reviewing liability waivers will know what the contract needs to include to protect your business best and absolve you from any responsibility should an accident occur.
According to ContractsCounsel’s marketplace data, the average cost of a project involving a liability waiver is $458.23.
What’s Typically Included in a Liability Waiver
Liability waivers will look different for different types of businesses and activities. Therefore, it is important to consult with your attorney so they can ensure that your waiver is explicitly tailored to your business and activities.
In addition to custom terms, the typical liability waiver should include the following information:
- Names and addresses of the business
- Name and address of the customer
- Which party is being protected and which is accepting risk
- The date of the agreement
- Information about the activity like the date and location
- A full description of the activity specifically including associated risks
- The duration of the agreement
- Signatures of all parties
Your liability waiver will need to include all necessary elements of a legally binding contract to be upheld in court. An experienced lawyer will know state and local laws concerning contracts and liability waivers.
Types of Liability Waivers
There are several types of liability waivers that a business can use. Although each one may be tailored for a specific purpose, they all accomplish the same goal: educating the customer about risks and waiving the right to legal claims for damages.
Three liability waivers commonly used include a general liability waiver, an event liability waiver, and a mutual liability waiver.
- General Liability Waiver. A general liability waiver protects one party (usually the business) from responsibility for injury or damages during a specific activity. The waiver must specify the activity and risks. In addition, the customer must understand they are waiving their legal right to a claim. For example, when a person goes skydiving, they will sign a liability waiver that says they understand that skydiving is a dangerous activity. Therefore, in an accident, they will not sue the skydiving company.
- Event Liability Waiver. Companies that host specific events use event liability waivers, like a triathlon. All participants will need to sign a liability waiver to compete, agreeing not to hold the company hosting the event liable for any injuries.
- Mutual Liability Waiver. Some liability waivers are called reciprocal agreements. In this case, both parties agree to absolve each other of liability.
Examples of Liability Waiver Projects
Liability Waiver Drafting Service
Liability waivers are vital documents for any business that participates in a risky activity and must be drafted correctly. Any business that requires a liability waiver should consult with a lawyer to draft this legal contract.
When an experienced lawyer drafts your liability waiver, you can rest assured that the contract will be legally binding and include all pertinent information and provisions.
Your lawyer will meet with you, learn about your business's services, and then draft a custom-tailored liability waiver that you can use with your customers.
Liability Waiver Review Service
Liability waiver templates can be found online; however, your business may not be fully protected if you use a “one size fits all” waiver. If you choose to find or draft your own waiver, you should hire a lawyer to review the document before using it.
Each state has different laws about liability waivers. These waivers will also vary based on the business and activity. Your local lawyer will know all the state laws that a contract must adhere to and can help you customize your waiver to best suit your business.
Drafting Liability Waiver Costs
Hiring a lawyer to draft a liability waiver will come with costs. The lawyer will charge their client for any time spent working on the project, including consultations and communications with the client and revisions after the draft is complete.
ContractsCounsel’s marketplace data shows the average liability drafting costs are $476.50 across all states and industries.
Liability Waiver Review Costs
A lawyer will also charge for review services, although typically less than drafting services. The lawyer will use their time and legal expertise to ensure your liability waiver is complete and legally binding.
According to ContractsCounsel’s marketplace data, the average liability waiver review costs are $350 across all states and industries.
How Do Lawyers Charge for Liability Waivers?
Hourly Rates for Liability Waivers
Many lawyers prefer to bill their time using an hourly rate fee structure. The lawyer will provide an hourly rate to be approved by the client and log time in a timesheet. At the end of the project, the lawyer will send an invoice to the client for the time spent on the liability waiver. This fee structure ensures that lawyers are paid for their work, especially if the project takes longer than expected.
ContractsCounsel’s marketplace data shows the average hourly rate for a waiver of liability lawyer ranges from $250 - $350 per hour.
Flat Fee Rates for Liability Waivers
Flat fee billing structures are becoming increasingly popular for contract drafting projects, like drafting a liability waiver. When using a flat fee rate structure, a lawyer will provide a flat-fee rate to the client for the project. The benefit of flat fee billing is that it gives certainty to the client on the project's total cost. However, it is essential to ensure the client knows what’s included with the fee before starting the project, as it may not involve rounds of revisions.
ContractsCounsel’s marketplace data shows the average flat fee rate for a liability waiver is $458.43.
Get Help with a Liability Waiver Project
Do you need help with a liability waiver? If so, post a project in ContractsCounsel’s marketplace to receive flat fee bids from business lawyers to handle your project. All lawyers on the ContractsCounsel’s platform are vetted by our team to make sure you are provided with top tier service.