Equine Law Blog

My Risk Management Program is My Liability Release

Well-intentioned horse owners and equine professionals sometimes expect a well-written release of liability (sometimes known as a “waiver”) to be their sole weapon in their efforts to avoid liability. Acting on the mistaken belief that those who sign releases cannot bring lawsuits, some people even consider cancelling their liability insurance policies.

Can a release of liability – even if well-worded – prevent all lawsuits from occurring? Definitely not. Here’s why:

• People who sign releases can, and sometimes do, file lawsuits. Sometimes their cases fail, but sometimes they do not. Without adequate liability insurance, you will pay the cost of a legal defense, which could be tens of thousands of dollars, out of your own pocket.
• As well-drafted as your document might seem, it could become the subject of a legal challenge when the signer claims that its language is invalid or unenforceable.
• The applicable state might not enforce the release based on the manner in which it was signed. That is, state law might prevent parents from binding their minor children to the terms of the document.
• The signer might only be a minor child, which renders the document voidable.
• In a legal challenge, the signer might claim to have been defrauded into signing the (well-worded) document and, as a result, seek to have the document stricken.

A release of liability is not a substitute for liability insurance. Use well-worded releases of liability that conform to the requirements of your state as well as your operations, and maintain proper liability insurance for your activities.

As you develop your personal risk management program, contact a knowledgeable lawyer and insurance agent.

Categories: Liability