If you’re reading this, you’ve probably embarked on a new journey as a business owner. Or perhaps you need some extra information. Well, you’re in the right place! 👀 Read this article to find out what a warranty disclaimer is and how it can help protect your business from liabilities.
A warranty disclaimer is a statement or clause in a contract that excludes or limits the seller’s responsibility for certain warranties. This typically means that the seller is not guaranteeing that the product or service will meet specific standards or perform in a particular way.
These disclaimers are often used to protect the seller from being held responsible if the product doesn’t perform as expected. However, it doesn’t always mean they can avoid responsibility for everything.
As a business owner, you need to be one step ahead and limit your responsibility, especially in cases of misuse of your website, content, product or services.
Here are some examples of user issues for which you could be held accountable:
👉🏽 In short, better to be safe than sorry! You need to make sure to protect your business from liabilities, and, ultimately, from financial or legal implications.
A disclaimer of warranty protects business owners from legal liability if their product or service malfunctions. See an example below:
Writing a warranty clause can be quite complicated, because it involves outlining the promises or guarantees that you are making about the product or service, as well as any limitations or conditions.
Here are the main elements of a warranty disclaimer:
Drafting a disclaimer of warranty can be quite complicated! Some key components of the statement can include that:
Be clear, concise, address the main liabilities and make your disclaimer easily accessible to users.
There are many different types of warranty disclaimers, but a generic warranty example to limit your responsibility can read something like this:
[Seller Name] guarantees that the product will be free from defects in materials and workmanship for two years from the date of purchase. If the product has a defect during this time, [Seller Name] will, at its discretion, either repair or replace it at no cost to the purchaser.
This warranty does not cover damage caused by misuse, accidents, unauthorized repairs, or normal wear and tear. To make a warranty claim, please contact [Seller Name] customer service at [contact details] within [X] days of discovering the defect and provide your proof of purchase.
For your warranty disclaimer to be legally valid, you need to make sure it can be found easily by users. Best practice is to:
As we mentioned, warranty disclaimers can have different purposes, such as limiting your liability or communicating to your customers that the product is not covered by warranties.
Let’s take a look at some examples.
Product warranty agreements define all the details about the warranty for a certain product, such as the duration of the warranty, what it covers, and what the company will or will not do in the event of a defect.
“[Product Name] comes with a limited warranty that guarantees the product will be free from defects in materials and workmanship under normal use for a period of [X] months from the date of purchase. This warranty does not cover damage resulting from misuse, abuse, accidents, unauthorized repairs, or alterations. To make a warranty claim, please contact our customer support team with proof of purchase. Our sole liability under this warranty is limited to the repair or replacement of the defective product at our discretion.”
This disclaimer is used when a company wants to make it clear that it offers no warranty of any kind on a product. This means the product is sold “as is,” and the company is not making any promises about its condition or performance.
“This product is sold ‘as is’ without any warranty of any kind, either express or implied. [Company Name] makes no representations or warranties regarding the performance, reliability, or functionality of the product. By purchasing this product, you acknowledge and agree that you assume all risks associated with its use.”
This clause limits the amount of compensation a company will provide if something goes wrong with the product. It essentially sets the boundaries for what the consumer can claim.
“To the maximum extent permitted by applicable law, [Company Name] shall not be liable for any indirect, incidental, special, or consequential damages, or for any loss of profits, revenue, or data arising out of or in connection with the use or inability to use this product. In no event shall our total liability exceed the purchase price paid for the product, or the replacement value of the product, whichever is less.”
Similar to the ‘No Warranty Expressed or Implied’ disclaimer, the “as is” disclaimer is commonly used to indicate that the product is being sold with no guarantees, warranties, or promises of quality or condition.
“This product is provided to you ‘as is,’ without warranty of any kind, either express or implied. [Company Name] does not warrant that the product will meet your requirements or that its operation will be uninterrupted or error-free. By purchasing and using the product, you agree to assume all risks associated with its use.”
The disclaimers above are just examples and may not always be suitable for your activity or business. For example, if you sell to consumers in the EU, you must guarantee at least a 2-year warranty (depending on the country), while there are countries (like Switzerland) where you can exclude the warranty altogether. Before you add your disclaimer, check your jurisdiction and its requirements, don’t just copy and paste!
Warranty disclaimers are a good way to protect your business, but a legally sound Terms and Conditions document can help you address all potential problems, not just warranty.
Terms and Conditions are not always mandatory but strongly recommended for setting how your product, service or content may be used, in a legally binding way. However, they become mandatory if you have an e-commerce, as they define the conditions of sale of your store.
🔍 Want to learn more? Read our post for 5 reasons why you need Terms and Conditions.
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