Open Your Doors, But Not Your Risk

from The Insurance Board Spring 2019 Newsletter

Churches frequently extend the use of their premises to third parties for one-time only events such as weddings, and for recurring events such as AA Meetings. The use of church premises for these activities exposes the church to liability in the event someone is injured on church premises, or inadvertently causes damage to the church.

It is recommended that when outsiders use the church premises, the church obtain a signed Facility Use Agreement and obtain a Certificate of Liability Insurance from the party. The Agreement spells out who is responsible for what, and the Liability Insurance is there to pay for accidents that result in Bodily Injury or Property Damage.

What if the third party does not have insurance? Through a product called TULIP (Tenants and Users Liability Insurance Program), a third party can obtain liability insurance specifically for use of your church. TULIP allows the Tenant or User entity to purchase a low-cost general liability product to cover their liability related to the utilization of the church premises, protecting the entity as well as protecting the church by providing an extra layer of insurance protection and including the church as an additional insured.

Upon approval of a short application, and premium payment from the third party user, Insurance Board is able to provide TULIP coverage. If your church is a participant in the IB program and has interest, please contact your agent for more details.