A well-written terms of use agreement should have several main elements. It should cover potential legal disputes, how the website protects users' privacy, and explain how it follows applicable law. The terms should be comprehensive enough to ensure that both the website and the users are covered in all plausible situations.
Website owners can see several benefits from having a terms of use page. They can reduce potential legal fees, increase website visitor confidence, and ensure users follow their rules. A well-written terms of use page can be the difference between a website succeeding and going out of business.
Elements of terms of use
Your website is your intellectual property, and it's up to you to protect it. There are three important sections that any terms of use agreement needs to have. These include a liability section, a privacy policy, and a section about the governing laws and regulations. Also, many websites have a passage within the liability section requiring users to go to binding arbitration rather than court if they have a legal dispute with the website.
Liability
A well-written website terms of use agreement has to cover liability. This part of the terms should lay out what the website is liable for and what it is not liable for. Of course, you want to reduce the website's exposure to liability as much as possible. However, there are certain situations in which the website may be exposed to liability concerns. Having a lawyer help you draft your entire terms of use document is a good idea. However, at a minimum, you should have a lawyer write the liability section of your terms of use.
A layman is not likely to know precisely what types of liability the website can afford and what liability exposure is inevitable. This part of the policy also has to make it clear that the user accepts these terms of liability when they accept the terms of use agreement as a whole.
This document will be legally binding, meaning it will reduce the website's exposure to liability as long as it is written per all applicable laws. This is perhaps the most crucial element of the entire document, as it can save your site thousands in potential legal costs and settlements.
Insurance companies that offer liability insurance will also require your website to include this section in the terms of use. You may also want to include a provision that requires users to go to arbitration rather than court if they have a legal dispute with the site.
Privacy policy
This is the only section of the terms of use agreement that every website is required to have. It is essential to explain how you will safeguard your users' data. If you are going to be sharing your users' data with other companies, you need to make this clear in the privacy policy. This is because you will need your users' informed consent to do so.
If you want to avoid legal fees, you do not necessarily need to get a lawyer to help you with this part, as the laws regarding website privacy policies are relatively straightforward. There are even many templates available online that you can use to craft a valid and law-abiding privacy policy.
However, if you have already engaged an attorney, it is not a bad idea to have them look over your privacy policy.