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What is a Terms of Service Agreement?
A Terms of Service Agreement limits the liability of businesses by stating the rules to using the website.
When a website offers links to third party websites, a Terms of Service can help explain to users that the business is not responsible if a user clicks those links. So, if a third party link brings a user to a hacked website, the Terms of Service disclosure can help prevent you from being sued.
A Terms of Service agreement can also help you comply with consumer protection laws and reduce the likelihood of investigation by the authorities for violation of these laws. The UK has a stringent consumer protection law that requires specific disclosures to be made. Failing to make these disclosures could open you up to liability that could have been avoided with a comprehensive Terms of Service agreement.
There are many additional disclosures that a Terms of Service can make, but these two are the most popular and are easy ways to protect your website and your business.