Churches, Don’t Take Chances When Lending Out Your Space

Events at your church pose various risks

As wonderful as it is to welcome people onto church premises, allowing other, nonaffiliated groups to share church spaces, such as classrooms and parish halls, poses a range of risks. Whether these risks take the form of damage to church property, theft of items on the premises, or potential injury, it’s important that churches have the insurance they need to handle any of these possible adverse events.

Events held on church property, indoors or outdoors, likely fall into one of two categories: regular events or special events. Regular events might be classes or community meetings, while special events could include weddings or large social dances.

Another factor to consider is whether the event is being held by a church member or someone not affiliated with the church. An event organized by someone not affiliated with the church may potentially carry more exposures to damage or liability claims.

Assess your property and establish a policy

Before lending out church space for any kind of event, you should first assess the property to make certain that there are no areas that could pose a hazard and leave you open to liability if someone were to become injured. Ensure that the building’s maintenance has not been neglected – a leaking roof, for example, could lead to a puddle where someone could slip and fall. Keeping up with building maintenance will help protect both your church members and members of the community.

It’s also a wise idea to establish a general policy for church leaders or board members to review regarding property use, both to streamline future rentals and to make sure everyone using church facilities gets the same treatment and rates. Such an internal policy for the church can give you clarity on how to plan for lending church premises and facilities and can answer many questions before they arise.

Written agreements are key

Outside this policy for church leadership, it’s also crucial that you have the parties who are borrowing or leasing the space sign a written agreement. Both the party using the space and the church will then be on the same page regarding what kinds of activities are and are not allowed (can wedding guests, for example, consume alcohol on the premises?); where responsibility lies for various items before, during and after the event (e.g., cleaning); and event details such as the length of the event and the number of attendees. Within your written agreement, be sure to include an indemnity clause that releases the church from liability.

Potential discrimination against anyone you might lend church space to or what events you might allow on the premises can also leave you vulnerable to legal action. Before agreeing to lend out your space to external groups, make sure that any restrictions you might have on the property use do not conflict with any applicable anti-discrimination laws.

Four common insurance options

Regarding the insurance for a given event, there are four common options.

• An event may be covered under the church’s own general liability policy. This is often the case for small regular community events, like a weekly class.
• An event may require special additional insurance that the church purchases. In this case, the church may wish to pass the costs of the special insurance on to the party organizing the event.
• An event may require special insurance, but the church can request that the event organizers purchase insurance for the event themselves and name the church on the policy as an insured party. In this instance, it is a good idea to ask for verification to ensure the church is covered.
• An organization with its own standing coverage may be allowed to use church property once or on an ongoing basis. In this case, you should ask that the church be listed on the organization’s policy as an insured and request a certificate of liability insurance from the group.

Work with your insurance professional on some standardization for insurance procedures, requirements and coverage for lending or renting your facilities. It will make it easier on all parties and will help protect your organization, members and individual leaders from financial loss.

We can help 

Ensuring that your church is properly protected when lending out its space is crucial to avoiding unexpected liabilities. MinistrySure specializes in insurance solutions tailored for churches, helping you safeguard your property, finances, and reputation. Contact MinistrySure today to discuss the best coverage options for your church and get expert guidance on risk management.