Why the Church Stays Exposed

As the owner and occupant of the premises, a congregation owes a duty of care to people who come onto the property. That duty does not transfer to an outside group simply because the group organized the event.\n\nIf someone falls on an icy walk, trips on a torn carpet, or is injured by a failing handrail during an outside group\'s event, the congregation is a natural defendant. If the outside group\'s own activity causes the injury, the congregation is still likely to be named, because plaintiffs name the property owner.\n\nTwo separate protections address that. Insurance from the outside group, with the church named as an additional insured, puts their carrier in the position of defending the church for claims arising out of their activity. An indemnity and hold harmless provision in the facility use agreement creates a contractual obligation for them to cover the church. The two work together: the indemnity creates the obligation and the insurance funds it.\n\nWithout both, the congregation\'s own policy absorbs the claim, the deductible, and the loss history, and the premium consequences arrive at renewal.

• Premises liability stays with the property owner regardless of who runs the event
• Additional insured status puts the outside group\'s carrier in front of your policy for their activity
• An indemnity provision creates the obligation; the insurance makes it collectible
• Without both, your policy and your loss record absorb the claim

What a Facility Use Agreement Should Contain

A facility use agreement does not need to be long. It needs to be used consistently, which is the part most congregations miss.\n\nIdentify the user, including a responsible individual with contact information, not just an organization name. Describe the specific space, dates, and times. Describe the permitted activity, specifically, and state that other activities are not permitted.\n\nRequire insurance. For a recurring organized group, commercial general liability at a stated limit with the church named as an additional insured, evidenced by a certificate before the first use and at each renewal. For a one time private event such as a family reception, a special event policy is usually available inexpensively and is the right answer.\n\nInclude an indemnity and hold harmless provision running in the church\'s favor. Include a provision allocating responsibility for damage to the building and its contents. Address alcohol explicitly, because alcohol changes the exposure and may be excluded by your own policy. Address minors explicitly, including whether the group\'s own screening and supervision policies apply and whether your policies apply to their volunteers.

• Name a responsible individual, the specific space, and the permitted activity
• Require general liability insurance at a stated limit with the church as additional insured
• Use a special event policy requirement for one time private events
• Include indemnity, hold harmless, and property damage responsibility provisions
• Address alcohol and activities involving minors explicitly
• Require immediate incident reporting and define cleanup and securing responsibilities

Review Your Facility Exposure

If your building hosts outside groups and you are not certain what agreements and certificates are on file, that is worth sorting out before the next incident. We work with churches, mosques, synagogues, and faith based organizations on property, liability, abuse, and governance coverage. Schedule a conversation at calendly.com/grandbayfinancial.\n\nThis article is for general information and is not a substitute for policy language or professional advice.