Definition - What does Release mean?
A release is a settlement between two parties that prevents one of the parties from further pursuing claims or court litigation or action against the other party. After covering damages, insurance companies often make a person sign a release form to protect themselves from future pay-outs.
Insuranceopedia explains Release
A release or settlement release is often signed in exchange for money given to a person after an accident involving damage to a body or property. The insurance company pays this money because they want to absolve themselves and their policyholder of any claims filed in the future. This is done by making the one injured or the owner of a damaged property sign a settlement release.
Once signed, the person harmed or the owner of the damaged property can no longer sue the one who did the damage or ask for more money to compensate for it. That is why people are cautioned to read the settlement release thoroughly or consult a lawyer because the release is a legally binding contract (the form is also called a "release contract").