Organizations often face situations that involve risks for which they could be held liable. A non-liability or release agreement is a contract in which an individual agrees to waive the right to seek recompense or take legal action in the event of a harmful event. One common use of non-liability agreements is to protect organizations against lawsuits in the event someone becomes ill or is injured while engaging in an activity involving the organization.
A non-liability agreement can be used to protect a company or other organization against claims based on almost any sort of risk. The person who waives the right to make a claim must receive some consideration in return. For example, a member of a workout facility gets access to the facility in return for signing a release of liability if she is injured while exercising. The non-liability agreement must specify the specific activities involved and the risks. It needs to include an acknowledgement by the individual that she understands the risks and agrees to give up the right to make a legal claim in the event she suffers a loss due to the specified risks. Other examples of the use of non-liability agreements include organizations that want to protect themselves against claims by employees or volunteers.