What is a release of liability and what should I watch out for before signing?

A release of liability (also called a settlement release or general release) is the legal document you sign when you agree to settle your personal injury case. It is a binding contract in which you give up your right to pursue further legal action against the released parties in exchange for the agreed-upon settlement payment. Once signed, a release is almost always final and irrevocable — you cannot reopen the case if your injuries turn out to be worse than expected. Before signing, carefully review: (1) which parties are being released — a release that covers "all persons and entities" could inadvertently release third parties who also bear liability; (2) the scope of claims released — it should cover only the specific claims in this case; (3) any confidentiality provisions; and (4) whether the settlement amount is clearly and correctly stated. Never sign a release without your attorney's review and without ensuring your injuries have stabilized enough to understand your full damages.