February 27, 2020
When Your Facilities are in Use
When Your Facilities are in Use
By Peggy Wilson, Arthur J. Gallagher
MUSIC members are frequently approached by various groups to use the members’ facilities. These requests can range from using one room for a meeting, to sports events in the gymnasium and social events, such as reunions or chili suppers, in the cafeteria. The groups and uses can vary widely from member to member. Each of these requests can create potential liabilities for the MUSIC member so we have developed several methods to assist in eliminating or transferring the risk.
The following are several methods of assessing and dealing with the risks associated with having the public use your facilities. Here are the four we have selected:
- Facility Use Request Form – This is a form that you can have, those wanting to use your facilities, complete. When completed, you will have an understanding of the group and the event, and can use this to determine the best way to protect the entity against potential legal suits. There is a “SAMPLE” form, available on the MUSIC website. This is optional to you, but may find it helpful in staying consistent with all groups that utilize your facilities.
- Certificates of Insurance – We suggest that anyone that utilized your facilities should provide proof of their insurance. This is done by providing you with a Certificate of Insurance showing that they have general liability coverage. You should also request to be shown as additional insured to their general liability policy. This protects you in the event you are brought into a lawsuit where the organization/group are liable. Once you have approved the use of your facility by an organization you need to determine if they have insurance. If they do, you will need to obtain a Certificate of Insurance that confirms their coverage. You should also request to be named as an Additional Insured to their general liability policy. This should be shown on the certificate and an endorsement to the policy should also be provided to you.
- Hold Harmless Agreements – If a group or organization does not have insurance, depending on what your Board Policy states, you may have the option to allow them to sign a Hold Harmless. Be sure to always check your Board Policy, as you must follow your Board Policy. If you require those that use your facility to have insurance, one option is to direct them to the online TULIP program that MUSIC offers only to their members. This is one or two-day event insurance for eligible events that take place on your premises. If your Board Policy approves of signing a Hold Harmless Agreement, or waiver, samples are available and were developed by one of the law firms MUSIC uses. Hold Harmless Agreements may also be called Indemnity Clauses and are required in addition to insurance in construction or service contracts. These agreements are not intended to be used for construction or service contracts. Those should be crafted by your school attorney.
- Special Events Coverage – This coverage can be purchased through MUSIC’s online program, TULIP for those events that will be held on member’s premises only. By providing the required information, and selecting the type of event that is eligible from the dropdown, you will be provided an online quote that you can choose to purchase and pay for online. The policy provides $1,000,000 liability coverage for the short term needed. If you would like other options, please let the MUSIC Staff know and we will assist in the different resources available within the insurance industry. Please email us at email@example.com with any questions you may have on this coverage. (Note: This coverage is only for spectators at an event; it does not cover participants or performers of the event.)
These are ways to protect both the member and MUSIC, as a pool. It is up to each member how they choose to protect themselves from outside risks. All must follow your Board Policy to determine what you are required to do, but these are MUSIC’s recommendations.