Connectional Interests
Board of Personnel Services
“From Where I Sit …”
“Church Rentals and Pitfalls” A national insurance company specializing in religious properties sent a recent notice indicating the potential liabilities churches may encounter by either renting unused spaces for long or short-term periods. Similar potentials may also arise even from the loaning of Church space. To ensure the greatest protection for your congregation, especially with rentals, you should secure a “written” agreement signed by both parties that include at least four primary provisions: 1) the renter should secure liability insurance for at least $1 million with medical payments of up to $5,000; 2) your church should be named as an “additional insured” on the renter’s liability policy and the renter’s policy should be listed as the primary policy and your church’s liability policy as secondary; 3) secure a certificate of insurance before the event or rental period begins which will serve as evidence of the liability coverage and your church listed as an additional insured; and finally, 4) there should be a holdharmless, indemnity, and defense clause that protects or favors your church regarding any liability claims arising from the renter’s use of your church property. This may seem like a lot to go through for a brief rental or for the use of your facilities, however, should the unexpected occur you will be happy that you took the time to ensure that these steps were taken. You should consult an attorney to prepare the rental agreement and the hold-harmless clause. It can then serve as a model for future occasions. You should also consult your insurance agent for suggested limits of liability coverage and medical payments to request of your potential renter. Your agent can also advise how to obtain from your renter the certificate of insurance that verifies the liability coverage and that lists your church as an additional insured on the renter’s policy. Whether renting or lending your sanctuary, fellowship hall, or any other area of your church facility or properties, you should, as noted in Luke 14:28, “count the cost” as you decide how much liability you wish to share with others. As always, you may contact our office with any questions, and we will be happy to steer you in the best direction. In my opinion, one should not let the potential of a mutually beneficial arrangement prove to be a costly experience in the long run. Or at least that’s the way it looks to me…
“From Where I Sit”
Tyrone T. Davis, D.Min, is the General Secretary of the Board of Personnel Services (Copies of earlier articles may be found on the Personnel Services Webpage of the CME Website at www.thecmechurch.org) 16
The Christian Index • March 2022
