Disclaimer: Definition, Types, Examples
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Disclaimers are legal texts that offer businesses protection from legal liability. While disclaimers can provide some level of protection, they do not completely shield a company from legal claims. Disclaimers are just one factor that may be considered by a court in determining liability. They shield a company from legal claims associated with user and third-party risk. In general, customers must usually agree to all terms and conditions before using a product or service. While it is common for businesses to require customers to agree to terms and conditions, it is not always a legal requirement. Whether or not a customer is required to agree to terms and conditions depends on various factors, such as the jurisdiction and the nature of the transaction.
In this article, we’ve shared what business owners should know about disclaimers in general:
What is a Disclaimer?
Disclaimers are legal texts that offer businesses protection from legal liability. They shield a company from legal claims associated with user and third-party risk. In general, customers must agree to all terms and conditions before using a product or service.
Here is an article which also defines disclaimers.
What is a Disclaimer Used For?
A disclaimer is used to protect your company from claims. You can utilize a disclaimer to limit the scope of your rights and responsibilities. Both parties can exercise and enforce these terms in a contractual relationship.
A disclaimer is also vital to protect you from third-party claims. They’ll let your users know that you’re not responsible for any damages related to the use of your website, services, products, and those with whom you affiliate.
What a Disclaimer Doesn’t Cover
If a consumer files a legal claim against your company, your disclaimers will provide you with the legal lifeline you need. However, disclaimers don’t shield you from acts of gross negligence. The level of negligence required to overcome a disclaimer may vary depending on the jurisdiction.
For example, if you’re a SaaS provider, you must ensure that you’re working in good faith to guarantee system uptime. This guarantee means that you’re upgrading equipment, conducting routine maintenance, and more. Customers can hold you liable for their associated losses when the system goes down too frequently due to carelessness.
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Types of Disclaimers
Contract law offers flexibility when it comes to using disclaimers. As such, there are several types of disclaimers that a business might want to know about and use.
Below, we’ve described ten different types of disclaimers:
Type 1. Third-Party Disclaimers
Most websites include links to other websites or services. It’s a way for the website to earn credibility, increase traffic, or build a brand.
These “third-party services” usually sponsor affiliate links strategically to generate revenue. This disclaimer informs users that your site contains third-party links, and users click them at their own risk.
Type 2. Warranty Disclaimers
Websites most often use warranty disclaimers. These disclaimers state what the website does and does not promise to users. They also acknowledge that you aren’t responsible for claims arising from service unavailability.
Type 3. Limitation of Liability Disclaimers
A limitation of liability specifies the extent of your responsibilities and obligations. This disclaimer is essential for safeguarding your website if a user encounters issues while using your site. Limitation of liability disclaimers make it clear that subsequent damages are not your fault.
Type 4. Industry-Specific Disclaimers
General liability disclaimers do not apply to all websites. Think about including industry-specific disclaimers if you have a website or blog that offers tips, advice, or sells products in certain types of industries that have industry-specific rules, regulations, or laws governing professional services:
- Finance
- Law
- Medical
Governing bodies and associations generally determine which disclaimers are necessary. Check with their offices if you have questions about your requirements.
Type 5. Shipping Disclaimers
Shipping disclaimers are for eCommerce websites that ship their products to customers. A shipping disclaimer limits your liability when something goes wrong, such as damage and delays, beyond your control.
Type 6. Product Return Disclaimers
Product return disclaimers, like shipping disclaimers, outline restrictions that apply to customer returns and exchanges. For eCommerce stores, it’s a must-have.
They’re usually found in a Return Policy. Some stores have many restrictions, while others have few. Others, such as final sale items, allow returns, and others don’t.
Type 7. Expressed Opinions Disclaimer
Expressed opinions disclaimers inform users that the author’s views and opinions are solely their own. They generally release a publisher from claims. Otherwise, readers might reasonably assume the opposite.
Type 8. Past Performance Disclaimer
Past performance disclaimers protect a company from former outcomes. For example, diet supplements may describe an average weight loss for a control group but don’t guarantee the same results for every customer. While the product or service works as intended, a company cannot become liable for every failure.
Type 9. Professional Advice Disclaimers
Advice from authors, doctors, lawyers, accountants, and business owners use disclaimers to protect themselves from specific legal actions. Professional advice disclaimers are helpful if users misinterpret published materials as guidance for their unique situation.
Many businesses purchase general or professional liability insurance to protect them after being hired. Your insurance company may require your customers to sign a release of liability with a release clause for enforceability purposes.
Type 10. Errors & Omissions (E&O) Disclaimers
Another major issue that many unwitting website owners face is accuracy. It’s common to publish factual errors and misleading content, but it exposes you to liability even when it’s unintentional. Use an errors & omissions disclaimer to protect you from these types of claims.
Image via Pexels by Karolina
What’s Typically Included in Disclaimer Language?
Disclaimer language typically includes terms and conditions that limit company liability. However, it’s hard to imagine what that looks like if it’s your first time drafting one.
Every disclaimer is unique, which means that the language in each one is different. As such, the best approach understands what type of disclaimer you need and shaping it based on the principles below:
Relevant Terms and Conditions
Disclaimer language typically includes information that is suitable for the specific situation. It should also be relevant to the end-user or customer.
Clear Legal Language
It’s wise to make your disclaimer clauses unambiguous. There’s an ongoing misnomer that complicated agreements are better. This assertion isn’t true.
Transparent terms and conditions help users quickly find information that they need. This simple feature alone can avoid many future problems.
Application Matters
It would help if you also prioritized a full review of your disclaimers before publishing. Analyze the text to ensure that words cannot be misapplied or misunderstood.
People often misinterpret information, which isn’t your fault, but you can lessen the chance of dealing with a complaint in the first place.
Fact-Based Wording
Ensure that your disclaimers are factual. You also can’t apply disclaimers to non-legitimate business purposes and still expect them to achieve enforceability. Write your disclaimers so that they are accurate, honest, and fact-based.
Disclaimer Examples
Knowing which type of disclaimer to use is one of the most challenging aspects of using one. How would you know if you have the right kind? We recommend, at a minimum, reviewing real-life disclaimer examples to help you solidify your understanding, especially for more complicated situations.
Here’s an example of how a lawyer would apply a disclaimer to their website:
- Marc is a lawyer in New Mexico
- He is building a website for his law firm
- Marc plans to share legal information that attracts website visitors
- He’s concerned about visitors interpreting his website as legal advice
- Marc limits his liability by placing a disclaimer in the footer of his website
- He decides to use an industry-specific disclaimer for lawyers
- The legal industry uses professional advice disclaimers in general
- Visitors understand that they may not sue Marc for his website content when he applies a professional advice disclaimer to his website
Take the guesswork out of creating a disclaimer. Hire business lawyers or contract lawyers to help you draft your to help you prepare a myriad of liability waivers.
They’ll not only help you work through crucial legal issues, but they’ll also help you handle the process entirely. From offering thoughts on a consent form to the contract signing, speak with a legal professional for the best result.
Get Help with a Disclaimer
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ContractsCounsel is not a law firm, and this post should not be considered and does not contain legal advice. To ensure the information and advice in this post are correct, sufficient, and appropriate for your situation, please consult a licensed attorney. Also, using or accessing ContractsCounsel's site does not create an attorney-client relationship between you and ContractsCounsel.
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I offer flat/fixed fees rather than hourly work to help lower your legal costs and align our interests. I specialize in contract law and focus on making sure your contract is clear, protects your interests and meets your needs. You can expect fast, straightforward communication from me, making sure you understand every step. With my experience, you'll get a detailed review of your contract at a fair, fixed price, without any surprises. I have over 30 years of business and legal experience that I bring to your project. I graduated from The University of Texas School of Law with High Honors in 1993 and practiced at Texas' largest law firm. I have founded companies and so understand how to be helpful as both a lawyer and business owner.
"Had a great experience working with Darryl. He was thoughtful, direct, responsive, and most importantly able to quickly understand a complex business and regulatory structure without overcomplicating things. Really appreciated his practical approach and ability to explain things clearly. Highly recommend."
Rhea d.
Rhea de Aenlle is a business-savvy attorney with extensive experience in Privacy & Data Security (CIPP/US, CIPP/E), GDPR, CCPA, HIPAA, FERPA, Intellectual Property, and Commercial Contracts. She has over 25 years of legal experience as an in-house counsel, AM Law 100 firm associate, and a solo practice attorney. Rhea works with start-up and midsize technology companies.
"Rhea is very knowledgable, quick, and provides great communication."
Michael M.
www.linkedin/in/michaelbmiller I am an experienced contracts professional having practiced nearly 3 decades in the areas of corporate, mergers and acquisitions, technology, start-up, intellectual property, real estate, employment law as well as informal dispute resolution. I enjoy providing a cost effective, high quality, timely solution with patience and empathy regarding client needs. I graduated from NYU Law School and attended Rutgers College and the London School of Economics as an undergraduate. I have worked at top Wall Street firms, top regional firms and have long term experience in my own practice. I would welcome the opportunity to be of service to you as a trusted fiduciary. In 2022 and 2023, I was the top ranked attorney on the Contract Counsel site based upon number of clients, quality of work and number of 5 Star reviews.
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I'm an attorney available to help individuals and small businesses in Georgia with initial business set-up, required filings, tax strategies, etc. I'm also available to draft, review, and negotiate contracts of many types, both personal and professional. I can draft and file real estate quit claims as well. My legal and business experience and expertise includes small business startups, information technology, technology innovation, real estate transactions, taxes, intellectual property, electrical engineering, the business of video game development, business requirements definition, technology consulting, technology companies, liability waivers and reduction strategies, and the electric utility industry. I work part-time for a local law firm and part-time in my solo practice. I'm also an adjunct professor teaching business law. In addition, I'm part owner, legal counsel to, and a board member of a virtual reality video game development company. I am a member of the Georgia Bar Association. Please reach out if you need attorney, documentation or consulting help in any of those areas!
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Brittany T.
Brittany is an experienced attorney specializing in transactional and complex contract matters including but not limited to SaaS development and product implementation, technology/data agreements, licensing, and compliance. She has over 7 years of experience providing strategic legal advice to individuals and business clients of all sizes, from start-ups to large corporations. Brittany has a strong understanding of the legal issues related to technology and software and is well-versed in drafting and negotiating contracts ranging from software licenses to data sharing agreements. She is a highly-skilled negotiator and is adept at finding creative solutions to challenging legal issues.
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Disclaimer
California
What are the legal requirements for including a disclaimer on a website?
I am a small business owner and I recently launched a website to promote and sell my products. I have heard that including a disclaimer on my website can help protect me from potential legal issues. However, I am unsure about the legal requirements for including a disclaimer. I want to know what information should be included in the disclaimer, if it is mandatory, and if there are any specific regulations or guidelines that I need to follow.
Randy M.
While California law doesn’t explicitly require every business to post disclaimers, certain legal notices are absolutely mandatory. And having the right disclaimers in place can make a huge difference in protecting your business. The Non-Negotiable Requirement: Privacy Policies If your website collects any kind of personal information from visitors, and chances are it does, you’re required by California law to have a clearly posted privacy policy. This requirement comes from the California Online Privacy Protection Act, or CalOPPA. It doesn’t matter whether your business is physically located in California. If someone in the state can access your site and you’re collecting things like email addresses, customer contact forms, or even just using Google Analytics, you’re covered under this law. The policy needs to be labeled “Privacy” in a way that’s easy to see. That means the word should be in capital letters and at least the same size as surrounding text. It also needs to be clearly accessible from your homepage. If you don’t comply, the state can hit you with a $2,500 fine for every violation. That can add up quickly. CCPA and the Higher Bar for Larger or Growing Businesses Then there’s the California Consumer Privacy Act, or CCPA, which brings even more requirements into play. For 2025, your business may fall under CCPA if your annual revenue reaches $26,625,000, if you process personal data from 100,000 or more California residents, or if half your revenue comes from selling consumer data. It’s important to know that “sharing” now includes things like behavioral advertising and cross-site tracking. So even if you’re a smaller company using ad cookies, you might still be required to comply. And the penalties? They’ve gone up as well. Administrative fines can reach $2,663 per violation. Intentional violations can cost up to $7,988 each. Consumers can sue if there’s a data breach, and damages range from $107 to $799 per incident. Why Disclaimers Still Matter Even though they aren’t always legally required, disclaimers are an important part of managing risk. Here are a few you should seriously consider: Limitation of Liability: This lets users know your website and products are provided “as is” without guarantees. It protects you if someone misuses your content or products. Professional Advice Disclaimer: If you offer any sort of informational content, like guides or blog posts, be clear that the material doesn’t constitute legal, medical, or professional advice. Product Disclaimers: If you sell physical goods, note that specifications may vary and you aren’t responsible for misuse. Third-Party Content: If your site links to other websites or displays third-party content, make it clear you aren’t responsible for what users encounter once they leave your site. California-Specific Legal Notices to Include In addition to your privacy policy and disclaimers, California expects businesses to provide several other notices: 1. Your business name and contact info, including email, phone number, and physical address. 2. Refund and return policies if you sell products or services online. 3. An accessibility statement, especially important as lawsuits under the ADA continue to rise. 4. A “Do Not Sell or Share My Personal Information” link if your business meets CCPA thresholds. Accessibility Is a Growing Concern California hasn’t yet mandated WCAG 2.1 Level AA compliance for all private businesses. Still, the increase in ADA-related lawsuits, along with new federal rules applying these standards to government websites, make this a smart area to address now rather than later. Data Broker? You May Need to Register If your business collects consumer data and either sells or shares it with third parties, California may classify you as a data broker. That means you’ll need to register annually with the California Privacy Protection Agency. The fee is $6,600, and starting in 2026, you’ll also be expected to publish annual reports and take part in a centralized deletion system for consumers. How and Where to Post Legal Notices Make sure your privacy policy is clearly labeled and linked in your website’s footer. Disclaimers can either live on a separate “Disclaimer” page or be included in your Terms of Service. What matters most is that these notices are easy to find and written in plain, understandable language. The Final Analysis Disclaimers may not always be legally required, but they offer vital protection. Privacy policies are absolutely mandatory if your business collects personal data from California residents, and the cost of non-compliance can be substantial. Given how quickly the legal landscape evolves, it’s a good idea to schedule a privacy policy review at least once a year. If you’re not sure whether your current notices are sufficient, consider speaking with a California business attorney. A quick legal review now can prevent major problems later.
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