Five Reasons Why Your Website Needs a Terms of Use Agreement

1. Limiting Liability From Errors

Protecting yourself and your business is one of the most important reasons to have a terms of use agreement. Most agreements contain a clause or disclaimer aiming to lessen the website owner’s liability from errors in the website’s content. In theory, this reduces the strength of any case a website visitor could make for injury or property damage if allegedly impacted by erroneous information.

The internet is full of websites with flawed information. The American legal system makes it relatively easy for businesses and consumers to sue each other in court over a negative experience or impact. It’s also relatively common for companies to be sued over baseless claims even at times when no wrongdoing occurred. Website owners should be prepared for this and take seriously the inherent (and sometimes unfair) risks of operating in such a public way.

2. Limiting Liability From User Content

If your website involves user interactions such as a comments section, social media functions, chat rooms or forums, a terms of use agreement can serve to insulate the website from user-generated content. This is especially important if users can freely upload digital media of their own to an online platform.