December 3, 2019
When Your Facilities Are In Use
Peggy Wilson – Client Services Supervisor
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, to 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 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 to be completed by each group wanting to use your facilities. 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. (Note: There is a “SAMPLE” form, followed by a blank form. You can fill in the key blocks on the blank form in advance and then copy it for use as needed.)
- Certificates of Insurance – 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.
- Special Events Coverage – If the facility user does not currently have insurance, they can purchase it through MUSIC’s online program TULIP for those events that will be held on the member’s premises only. By providing the required information, and selecting the type of event that is eligible from the dropdown, the facility user will be provided an online quote that they 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.)
- Hold Harmless Agreements – In addition to proof of insurance or the purchase of a special events policy, the facility user should sign a Hold Harmless Agreement. If the Facility Use Request Form is used, then there is already a hold harmless agreement included. However, if that form is not used Here are three sample agreements developed by one of the law firms MUSIC uses. NOTE: Hold Harmless Agreements may also be called Indemnity Clauses and are required in addition to insurance in construction or service contracts. The enclosed agreements are not intended to be used for construction or service contracts. Those should be crafted by your school attorney.
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 Service to determine which has already been selected for you, but these are MUSIC’s recommendations.