Website Terms of Use: How do I limit liability?

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Table of Contents

• What should be included in a ‘Limiting Liability’ clause?
• Conclusion

Website Terms of Use are a set of terms which govern how your website is to be used.  It is important for businesses to have Website Terms of Use as it explains to website visitors how they can and cannot use your website. On top of this, this important document limits liability for your website, including for information, outages and third party links or information and to meet your obligations under Australian law and regulations. Speak with a business lawyer today about how to limit liability through your Website Terms of Use.

With technology being so easily accessible, most websites are also easily accessible. While this may be a good thing, as it allows your business to be exposed to a wide audience, there are also considerable risks. Some of these risks can be mitigated with a strong set of Website Terms of Use with a clear disclaimer and limitation of liability clause. It is important for your business to limit liability, as without a limitation of liability, your business may find itself susceptible to large claims for damages. With the assistance of a business lawyer this outcome can surely be prevented.

What should be included in a ‘Limiting Liability’ clause?

If your business provides information, such as financial information, health information, or any other form of information, but you do not intend for such information to be advice, your Website Terms of Use needs to make this distinction clear. You should indicate that any information on the website is general information only, and is provided purely for the convenience of the users. You should also state that the information has been provided without taking into consideration the personal circumstances of any user, and that the information is not a substitute for professional advice.

To further limit liability, the Website Terms of Use needs to make clear to the users that your business will not be liable for any loss, damage, costs or expense, whether direct, indirect, incidental, special and/or consequential including loss of profits, suffered by a user or any third party, or claims made against a user or any third party which result from the use of the website or reliance on any information on the website.

However, it is important to note that a limitation of liability clause can only provide limits to the extent permitted by law. Therefore, the Website Terms of Use, should make reference to the Australian Consumer Law, and state that representations, guarantees, and warranties, other than those expressly set out in the Website Terms of Use, are excluded, to the extent that is permitted under the Australian Consumer Law and any other applicable law.

Conclusion

It is essential when drafting your Website Terms of Use that you include well-drafted limitation of liability. This could reduce to chance of issues arising in the future and limit any unexpected consequences stemming from what is on your website. If you would like any assistance, place contact one of our business attorneys.