Q: How can we avoid issues with lending facilities to outside groups?

A: Knowing who will be using your facility and for what purpose can help avoid risk management issues.

Keep your church in safe condition. Work with an attorney to create a written agreement for the use of the facility.

A written agreement should:

• Describe what parts of the facility will be used, the times and days of usage, and the purposes for which the facility will be used.

• Contain detailed insurance requirements for the group using your facility.

• Include a hold-harmless, indemnity and defense clause for any liability claim.

In addition, we recommend that insurance requirements should:

• Include at least a $1 million limit of liability coverage in a commercial liability policy.

• Require that your church be listed as an additional insured for liability damages that are a result of the group's activities on your premises.

• Mandate that the other party provides your church with a certificate of insurance as proof of coverage.

Posted 2021

The information provided in this article is intended to be helpful, but it does not constitute legal advice and is not a substitute for the advice from a licensed attorney in your area. We strongly encourage you to regularly consult with a local attorney as part of your risk management program.