Many recreational service providers, including gyms and rock climbing centres, offer their customers opportunities to participate in activities that have the potential to cause injury or even death.

If you provide recreational services, you’ll need to ensure your terms and conditions cover you for these risks.

Otherwise, you’ll increase your chance of getting sued and being liable for large sums of money. 

Clauses in your business’ terms and conditions can exclude your liability for death and injury. 

However, doing this correctly is difficult because the laws in this area are very complex.

Before you add any exclusion clauses into your business terms and conditions, it’s important to know what they are and how they can protect you. 

What Is An Exclusion Clause?

An exclusion clause has the potential to fully exclude your liability if something goes wrong while a customer is using your service.

Exclusion clauses can be found in a lot of simple customer contracts. They’re particularly common in the terms and conditions of businesses that provide recreational services. 

However, inserting an exclusion clause into your business’ terms and conditions isn’t always  simple due to the range of laws and regulations that may apply. 

Here are three key areas to consider if you’re thinking of adding an exclusion clause to your business’ terms and conditions.

Negligence

Negligence can often be a difficult area of law to navigate.

As a recreational service provider, you owe a duty to your clients that your services will be of a particular standard and that you will not be negligent. 

You may exclude liability for negligence if you draft your contract correctly. However, if your negligence also means a breach of a consumer guarantee under the consumer protection laws, there are very specific provisions on how that may be done. 

Generally speaking, if you are able to correctly exclude the consumer guarantees, you will also exclude your liability for negligence. 

What To Take Away…

As a recreational service provider, it is important to know what steps you can take to exclude your liability for death and injury. This is a very complicated area, so if you’re considering how best to protect your business, give us a call or email us at [email protected] and we’ll happily help you out!

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