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Using disclaimers can be an effective way to limit your business’ legal liability. Different types of disclaimers are appropriate for different business situations. Knowing the options available to you can help avoid disputes with customers or clients. This article will explain what a disclaimer is and explore common types of disclaimers.
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What is a Disclaimer?
A disclaimer is a statement that intends to set or limit your obligations in a legal relationship. The term ‘disclaimer’ implies some risk exists, which the provider of the disclaimer is unwilling to take on.
Often, people use disclaimers outside of the standard terms and conditions that the parties to a contract agree to. The purpose of a disclaimer is to make individuals aware of particular risks, and then seeks to limit your responsibility for being liable for such risks. A disclaimer can help protect your company or business against potential liabilities specific to your business.
Copyright Disclaimers
A copyright disclaimer protects your intellectual property rights. If you run a website, it can communicate to parties that everything on your website is yours. The clarity this disclaimer provides can prevent misconceptions and direct users to use your work properly. This can help you hedge against a potential copyright infringement and could be a useful way of avoiding having to take legal action.
This type of disclaimer can help avoid a potentially costly legal process, as it lets people know that you have intellectual property rights. Although copyright disclaimers are not legally required, as your work is automatically protected, it will support your ownership in court if someone attempts to take your materials. It shows that you are aware of the law and are ready to protect your rights through a legal claim.
One way of using a copyright disclaimer is to place a copyright notice on your website. For instance, this will usually involve:
- a copyright symbol;
- the year of publication; and
- the copyright owner’s name.
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Website Disclaimers
In addition to using disclaimers on websites to protect intellectual property, you can use disclaimers for various other aspects of your website. A website disclaimer is important for businesses to protect themselves legally and set clear expectations for website users.
Another important aspect is content disclaimers on websites. Many businesses provide a range of content online, but it is all general information and should not be relied upon as specific advice. These disclaimers are vital for all businesses that provide information online, such as financial companies, health companies or any other business with informative content on their website.
Confidentiality Disclaimer
Confidentiality disclaimers let people know that information or a message you have given (for example, a message to an email address) is only for a specific audience. This disclaimer helps protect the confidentiality of the information disclosed and sets clear expectations for the recipient regarding their responsibilities in handling the information. For example, this type of disclaimer lets the recipient of a message know:
- who the message is for;
- why they should not forward it to others; and
- who the recipient should contact if they have received the message by mistake.
To provide a clear disclaimer, you must determine what information qualifies as confidential for your business. This may include trade secrets or financial data. The disclaimer works like a reminder that you know your legal rights and are willing to use legal action if a party breaches confidentiality. However, you cannot use a confidentiality disclaimer as a substitute for a legally binding confidentiality agreement. In many situations, the recipient does not actually agree to be bound by confidentiality obligations. Depending on the circumstance, you may need a lawyer to create a tailored agreement or disclaimer to protect your business.
Financial or Legal Advice Disclaimer
A disclaimer regarding financial or legal advice might clarify that you do not intend for the other party to rely on the advice provided. This type of disclaimer means you will not be liable for professional negligence if the advice causes the other person to lose money by, for example, influencing their investment decisions.
Although this type of disclaimer can be useful if you advise in specific situations, it will not always fully disclaim your legal liability if you are giving professional advice in a professional capacity. If you are unsure whether you have received unreliable financial or legal advice and it has caused a loss, you should contact a lawyer who can advise you of your rights.
How Do I Create a Disclaimer?
There are various ways to create a disclaimer for your business. One option is to use a disclaimer template. These are often available online; you can find some on the UK government website.
Key Takeaways
Disclaimers are a good way of alerting others of your legal rights. They signal that you are willing to take legal action. Note that different types of disclaimers will apply in different business contexts. You can find disclaimer generators and templates online for simple types of disclaimers. However, contacting a lawyer to help you with disclaimers is a good idea, as they can ensure the best protection.
For assistance drafting disclaimers for your business, our experienced contract lawyers can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on 0808 196 8584 or visit our membership page.
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