Insurance underwriter highlights the importance of liability waivers

For operators offering activities or services that pose a risk of injury to the participant, a liability waiver is recognised as a valuable tool to protect against being sued for damages.

A recent advisory note from Carter Newell Lawyers, advises that liability waivers are a document given to a customer by a service provider which attempts to reduce or remove its liability for an injury which may occur while participating in that activity is commonly referred to as a liability waiver.

When it is signed by a participant, the intention is that it forms a contract between the service provider and the participant which can be relied upon at a later time if necessary.

There are national consumer protection laws which allow a service provider who provides a ‘dangerous recreational activity’ to enter a contract with a participant to waive the liability of the service provider if the participant suffers a personal injury.

Precision Underwriting, an insurance underwriting agency specialising in public liability insurance for the leisure industry, encourages clients to use waivers to have their patrons acknowledge a heightened risk of injury or in some cases acknowledge that they are undertaking a ‘dangerous recreational activity’.

Precision’s Senior Underwriter, Paul Douglas notes that “we are seeing an increased use of online booking systems for leisure industry clients, who are looking to incorporate a waiver of liability, however, we are concerned whether the manner in which the waiver is being completed is going to be useful in the defence of a claim.”

To seek some clarity on this issue, Precision Underwriting contacted award winning specialist law firm Carter Newell Lawyers, asking Rebecca Stevens of the firm’s Brisbane office for advice around waivers in general and what is required to incorporate the waiver for group and family bookings where the person making the booking may be signing on behalf of multiple participants.

However, in recent advice provided by Dr Betul Sekendiz, founder of Fitness Industry Risk Management Consulting, she warns “the enforceability of waivers in Australia is complicated and court decisions are likely to be lenient towards the injured in the absence of evidence of reasonable due care for safety.”

Click here to view Carter Newell Lawyers’ advice.