How to Write a Business Letter of Liability

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Man typing on laptop at work (Image: nisimo/iStock/Getty Images)

Some businesses offer potentially dangerous services to their clients. A skydiving company, for example, allows customers to jump out of an airplane on its watch. Despite taking numerous safety precautions, not every risk can be completely eliminated. To protect themselves, businesses can draft letters of liability that the customer signs. By signing the letter, the customer acknowledges and assumes the risks associated with the business’ services and agrees not to sue the business if an injury occurs during the course of the activity.

Determine the scope of the release of liability you'll ask your customers or clients to undertake. For example, a dog park may require its patrons to assume the risk of injury that may arise from other patrons or other dogs in the park, and stipulate that the dog park will not be responsible for losses or injuries to patrons using the park.

Title the document “Letter of Liability,” “Release of Liability” or something similar.

Draft the letter in the first- or third-person. Begin with language such as “I hereby acknowledge the risks and dangers associated with [business activity] and I am voluntarily choosing to participate.” Be specific regarding the activities and the risks associated with your business.

Include a paragraph where the undersigned acknowledges that she is releasing your business from liability and voluntarily agreeing to hold harmless and indemnify the business from any risks that the undersigned has assumed as a condition of the services.

For example, a climbing gym’s letter of liability may contain language that explains the climber is releasing the gym from liability associated with the risks of climbing, such as falls or loose climbing holds.

Conclude the letter with language that makes it clear the document is a binding legal contract. Warn the reader that he should not sign the letter if he does not understand its terms.

Include lines for the reader to sign and date the letter. Print the letter on company letterhead.

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