About this Checklist
Exercise groups, election boards, Alcoholics Anonymous, and other worthwhile organizations may ask to use your building for meetings or other events. Before saying “Sure!” consider how you will protect your ministry from liability for related damages or injuries. The key issue with loaning or renting church buildings to outside organizations is that your church can be held liable for accidents or injuries, even if your ministry is not the event sponsor. A secondary issue is security. Ministry items could be damaged or stolen while the building is open for other groups’ events. If you haven’t taken steps to secure valuables, your ministry may bear the cost of replacing missing items. This checklist covers the following questions:
Is the borrower’s reputation well established and generally accepted by your community?
Do you have a signed Facility Use Agreement with the outside group?
Does the agreement contain a “hold harmless,” indemnity, and defense clause for any liability claims resulting from the borrower’s activities on your premises?
If you have a Facility Use agreement, did your attorney review it to make sure it complies with your state laws?
Does the agreement require that the borrower have a Certificate of Insurance (COF) public liability insurance policy with at least a $1 million limit of liability coverage and a $5,000 limit of medical payments coverage?
Does the agreement require that your organization be named as an “additional insured” on the borrower’s policy for liability damages resulting from its activities on your premises?
Does the agreement require the borrowers to furnish you with a certificate of insurance that proves coverage and shows your organization as an additional insured?
Will the group’s activities cause undue wear and tear on your facilities?
Are the group’s activities of a high-risk nature in which people might be easily injured?
Will the group be confined to one specific area of your building, or will multiple rooms be required?
If the group using your facility works with children or youth, will there be adequate adult supervision?
Posted 2022
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.
