the main purpose of a general release of liability form is to protect a business entity from potential lawsuits. if you own a business and you conduct physical activities, having a general release of liability form is important because it protects you and your business from any potential lawsuits. even if the injury happened during normal operations, you won’t have to worry because your business wouldn’t be at fault. but if the injury happened because of negligence, you can’t use this document for your business’ defense. you should tailor-fit this document on a case-to-case basis. the most popular situation for needing a release from liability is when you sell your car.