What is a 'liability waiver' in relation to personal lines insurance?

A liability waiver is a legal document that individuals sign to relinquish their right to pursue a claim for negligence against another party. This means that when a person signs a liability waiver, they agree not to hold the other party responsible for any injuries or damages that may occur, typically in the context of activities that carry inherent risks, such as sports or recreational events.

By signing this document, the individual acknowledges the risks involved and accepts them, thereby protecting the party organizing the activity from future litigation related to those risks. It is important in personal lines insurance because it can significantly affect liability claims and the overall risk exposure for insurers. Liability waivers are also often used to clarify the responsibilities and expectations of all parties involved, reducing the likelihood of misunderstandings and legal disputes.

The other options do not accurately define a liability waiver, as waivers do not provide additional funding, increase premiums, or guarantee coverage.