What to Include in a Waiver: The 7 Essential Elements Every Business Needs

Whether you run a fitness studio, a bounce house rental company, a dog grooming service, or a skydiving operation, the moment a customer participates in your activity, you take on risk. A liability waiver is the most fundamental tool for managing that risk. But not all waivers are created equal. A poorly drafted waiver can be worse than no waiver at all, because it gives you a false sense of security while providing no actual legal protection.

This guide covers the seven essential elements that every liability waiver should include, regardless of industry.

Element 1: Identification of Parties

Every waiver must clearly identify who is releasing whom. This means naming the participant (full legal name, date of birth, contact information), the business being protected (full legal business name, any DBAs, entity type), and additional protected parties such as owners, officers, directors, employees, agents, volunteers, contractors, and affiliates.

If your waiver only names "ABC Adventures" but you personally get sued as the owner, the waiver may not protect you individually unless you are explicitly included in the release language.

Element 2: Description of the Activity

The waiver must clearly describe the activity or service. Vague descriptions like "recreational activities" have been challenged successfully in court because participants argued they did not understand what the waiver covered. Describe the activity in concrete terms: what the participant will be doing physically, what equipment or facilities are involved, and the general environment.

Element 3: Assumption of Risk

The assumption of risk clause is where the participant acknowledges that the activity involves inherent risks, understands what those risks are, and voluntarily chooses to participate. This is the most scrutinized section in court.

To be effective, this section must enumerate specific risks relevant to your activity, include a catch-all such as "including but not limited to the risks described above," state that participation is voluntary, and acknowledge that risks may result in serious bodily injury, permanent disability, or death. Courts have found waivers unenforceable when they downplayed the severity of potential outcomes.

Element 4: Release of Liability

This is the operative clause where the participant gives up their right to sue. It should state clearly that the participant releases the business from liability for any claims arising from participation and that this release applies to claims arising from the negligence of the business or its employees.

The negligence provision is critical. In most states, a waiver that does not explicitly mention negligence will not protect the business from negligence claims, which are the most common type. The word "negligence" should appear prominently and clearly.

No waiver can release a business from liability for gross negligence, recklessness, or intentional misconduct. Do not try to include such language; it may undermine the enforceability of the rest of the waiver.

Element 5: Indemnification Clause

An indemnification clause goes further than a release. Where the release says "I will not sue you," the indemnification clause says "If someone else sues you because of me, I will cover your costs." This is relevant for group activities where one participant's actions injure another, for minors where a parent signs but another family member later brings a claim, and for third-party claims such as a participant's insurance company seeking subrogation.

A typical indemnification clause states that the participant agrees to indemnify, defend, and hold harmless the business from any claims, lawsuits, or expenses brought by the participant, their family members, heirs, estate, or any third party.

Element 6: Signature and Date

A waiver without a signature is just a piece of paper with words on it. Include the participant's signature, the date of signing, the participant's printed name, and optionally a witness or staff confirmation.

For digital waivers, electronic signatures are accepted as equivalent to handwritten ones under the federal ESIGN Act and state-level UETA laws. Additional metadata strengthens enforceability: IP address, device information, geolocation, and timestamp are all useful evidence. WaiverDrop automatically captures this metadata with every signature, providing a detailed audit trail without extra effort.

Element 7: Governing Law and Jurisdiction

This section specifies which state's laws govern the waiver and where disputes must be filed. Waiver enforceability varies dramatically by state. If your business operates near a state border or serves customers from multiple states, you want to ensure your home state's laws apply. A jurisdiction clause prevents a plaintiff from filing suit in a jurisdiction more favorable to them.

Best Practices for Enforceability

Use clear, plain language. Courts favor waivers written clearly enough for an average person to understand. Aim for an eighth-grade reading level.

Use conspicuous formatting. Key provisions should be set apart visually with bold text, larger font, or separate signature lines. Courts have invalidated waivers where important language was buried in dense small text.

Do not combine the waiver with other agreements. Mixing waiver language into a registration form or terms of service creates ambiguity.

Sign before the activity, not after. A waiver signed after the activity is generally unenforceable because the participant already received the service.

Keep signed waivers on file. Retain them for at least the length of your state's statute of limitations for personal injury claims, typically two to six years. WaiverDrop stores all signed waivers securely with unlimited retention, so you never have to worry about lost or degraded records.

Have an attorney review your waiver. Waiver law is state-specific and evolving. An attorney licensed in your state can ensure compliance with local requirements.

The Bottom Line

A liability waiver is not a magic shield. It will not protect you from every possible claim, and it cannot excuse reckless conduct. But a well-drafted waiver containing these seven essential elements gives you a strong first line of defense, sets clear expectations with your customers, and provides documented evidence that participants understood and accepted the risks involved.