Dealing with Outside Organizations and Insurance Coverage for Events: It is what you

don’t know that may hurt you…

Reid Sandner, CPCU, ARM, ALCM, AUExecutive Vice President

Willis of Pennsylvania

MARCH 2012

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Who is Using Your School Facilities Student Groups

Faculty Groups

Parent Groups

Community Groups

Volunteer Groups

Athletic Associations

For Profit Outside Groups

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Why Are They Using The Facility Educational

Community Programs

Athletic Events

Profit Potential – Is there a charge?

Outreach

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Where In The Building Or What Part Of Facility Will They Be Using Gym

Auditorium

Computer Lab

Library

Consumer Science

Manual Arts

Cafeteria

Pool

Class Rooms

Outdoor Fields/Stadium/Astro Turf

Playgrounds

Parking lots

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When Are They Planning To Use It Workday

Weekend

After school

During school

Will there be interaction with students

Will staff be present during their use

Who will secure premises when they are done

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Accord Certificate General Liability

Workers Compensation

Excess/Umbrella Coverage

Effective/Expiration Date

Cancellation Provision

Additional Insured Status

Activity

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Potential Problems

Additional Insured Policy Language

Policy Coverage/Exclusions

Other Insurance Clauses

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Ways of Dealing with Risk

Avoidance

Loss Prevention

1. Hold Harmless

2. Indemnification Clause

Insurance

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Facility Use Request Form Samples

Facility License Agreement

The ____________school district, (hereinafter referred to as the "school district") gives ___________(hereinafter referred to as the "user"), permission to use ________________. The school district shall retain possession of the premises at all times. This is a revocable license and user's authority to use the facilities is subject to the following terms and conditions.

1. User shall have access only to the following: __________________________

2. User shall have access to the facilities described in paragraph 1 hereof only on the following dates and at the following times: _________________________

3. The school district, through its officers and agents, including police, may remove any objectionable person or persons from school district premises.

4. This license is automatically revoked if user brings or allows to be brought onto school premises any weapons, alcohol or any substance controlled by law.

5. User may use the facilities described in paragraph 1 hereof for the following purpose(s) only:

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Facility Use Request Form Samples6. In consideration of this license, user shall pay the school district prior to use the

following fees: ___________________.

7. User may not cause or permit any damages to school district premises, property, furnishings, fixtures or equipment, and will not do or allow anything to be done which would damage or change the finish or appearance of the premises or its furnishings, fixtures, or equipment. User is liable for the cost of repairing damage which may be done to school district property, including, by way of example and not limitation, furnishings, fixtures, or equipment. The school district shall determine the amount of the damage and the reasonable cost to repair any damage done. User shall pay this amount within 10 days of being notified of the amount. User may not bring or permit anyone to bring onto school premises anything that increases the risk of fire.

8. User holds the school district harmless from all claims for injury to or the death of any person, and for damage to or the loss of any property arising out of or attributed directly or indirectly to the operations or omissions of the school district. User indemnifies the school district for all damage to property belonging to the school district and for all injuries to or the deaths of any representative or employees of the school district resulting from all acts or omissions of user.

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Facility Use Request Form Samples

9. The school district is not responsible for user's property. All protective services desired by user must be arranged by user. The school district is not liable for the acts or omissions of any protective services engaged by user.

10. This license may be revoked by the school district at any time and for any reason, with or without cause.

11. User shall provide the following insurance:___________________

12. User shall comply with all applicable laws.

13. The school district may remove from its premises and facilities and dispose of or store, at its sole discretion, any personal property left behind by user or those participating in user's function or activity.

14. User may not obstruct the halls, ramps, entrances or lobby of the building. User shall keep the passageways clear at all times.

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Facility Use Request Form Samples

15. User agrees to pay all attorney fees incurred by the school district for actions arising from this license.

16. User agrees that no illegal, indecent, lewd, obscene or immoral conduct will take place.

___________________________________________School DistrictBy: _______________________________________

_______________________________________USERBy: _______________________________________Title: _______________________________________Date: _______________________________________

(Provided by the Pennsylvania School Boards Association)

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Facility Use Request Form Samples

Application and Agreement

Application is made to use school district property or facilities as follows:

I. Requesting organization/individual:2. Full legal name:3. Address:4. Telephone number:5. Contact person:

Name:Address:Telephone number:

6. Date of request:7. Facility requested:8. Equipment/services requested:9. Dates and hours requested:

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Facility Use Request Form SamplesIf granted permission to use the above property or facility and, if any, equipment or

services, it is agreed by and between the school district and the requesting organization/individual as follows:

1. The requesting organization or individual granted use will abide by all policies, rules and regulations of the school district on the conduct and deportment of persons in or on school district premises or facilities, whether now or hereafter adopted.

2. The use of the property or facilities shall not, in any way, interfere with the operations of the school district or any of the programs or activities of the school district. If required for school district purposes, it is understood that the right is reserved to the school district to withdraw or rescind the grant of the use of the property or facilities on short notice.

3. Weapons, alcoholic beverages and controlled substances shall not be brought onto school district premises or into school district facilities. Smoking is prohibited in all school district buildings.

4. School district property, facilities and equipment will be used in a careful and prudent manner so as to prevent loss, defacement or damage. Good order and discipline shall be maintained by the requesting group/individual.

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Facility Use Request Form Samples

5. The property or facilities will be vacated by the time set forth above and shall be left in as good a condition as when the use began. Unless payment is made for cleanup and cleanup is specifically requested, the property or facilities will be left in a thoroughly clean condition by the requesting group/individual. Performance of clean up by the school district will not diminish or eliminate any liability for damages of the requesting group/individual.

6. The request organization (and the undersigned officer, agent or representative thereof individually and jointly and severally with the organization) or individual, agrees (a) to pay for and assume all and full liability for any loss or damages to persons or property or claims therefore resulting to or arising from the use of school district property or facilities by such organization or individual (and those granted access to the facility thereby) whether from an occurrence at the property or facility itself during such use, before or after such use, going to and from such use, in or about available parking areas, or otherwise; (b) to reimburse and/or hold harmless the school district, its board of directors, and the members, agents and employees thereof from any such loss, damage or claim, including, but not limited to, its or their attorneys' fees; and (c) to pay any attorneys' fees and costs paid or incurred by the school district to enforce any obligations imposed under this paragraph or otherwise herein.

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Facility Use Request Form Samples7. The requesting organization/person shall provide to the school district, at least ten

(10) days prior to the date of the first use, two copies of liability insurance policies for bodily injury and property damage in the minimum amount of $_______for injury and property damage insurance covering the use with a company licensed to do business in Pennsylvania. This policy must be taken out in the name of the requesting organization/person and the school district. Failure by the requesting organization/person to obtain insurance shall not diminish or eliminate any liability of the requesting organization/person.

8. The school district is not responsible for the property of the requesting organization/person or of any property brought on school premises or in school facilities in connection with the use of school property or facilities by the requesting organization/person. All protective services desired by the requesting organization/person must be arranged by the requesting organization/person subject to the approval of the school district. The requesting organization/person shall be liable for the acts or omissions of any protective services engaged. The school district is not liable for the acts or omissions of any protective services engaged.

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Facility Use Request Form Samples

9. The requesting organization/person shall comply with all applicable laws; all requirements of the police and fire departments and other municipal authorities, and shall obtain and pay for all necessary permits and licenses. The requesting organization/person shall pay all taxes required.

10. The school district may remove from its premises/facilities any personal property

left behind by the requesting organization/person or by anyone using the facilities.

11. The requesting organization/person shall not obstruct the halls, ramps, entrances of lobby of any building nor permit any chairs or movable seats to be or remain in the passageways and will keep the passageways clear at all times.

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Facility Use Request Form Samples

12. The requesting organization/person assumes responsibility for the acts of all participants and/or spectators for liability, injury or property damage.

13. Alteration or relocation of items or components mechanical or otherwise is prohibited unless prior written approval has been granted by the school district.

14. A rental charge in the amount of $ ______, a service charge of $__________ and a clean-up charge of $________ shall be paid at least ten (10) days in advance of the use of school district premises or facilities.

15. The requesting organization/person shall provide the following policing, traffic management and crowd control:

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Facility Use Request Form Samples

Date of request: ________________

_____________________________Signature_____________________________Printed name and title

The above application is [ ] approved [ ] denied, subject to the following additional conditions:Date of Action: _________________

______________________________School District

By: ___________________________ President

By: ___________________________ Secretary

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Risk Financing Techniques

Use of Facilities by Community Groups

Most schools allow community groups to use their facilities. This is one area where you may receive no tangible benefits, yet, you do face potential loss. If a participant or spectator in an activity sponsored by one of these groups is injured, you may be held liable for damages. As owner of the premises, you always face secondary liability in these circumstances. However, you may have primary liability if the group sponsoring such an event does not have their own insurance coverage.

In these circumstances, your liability policy will respond. You must remember, however, that your policy is subject to experience rating which means that losses are compared to premiums and premiums will increase when losses occur. For this reason, it is important to limit losses and avoid situations where you are assuming loss unnecessarily.

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Risk Financing TechniquesOne answer to this problem would be to prohibit use of your facilities for any non-school activities. This may be difficult, if not impossible, as schools tend to be the focal point of many communities. The best answer then is to devise a system which will protect the school. We recommend the following three-step procedure for this purpose.

1. Require certificates of insurance from outside groups which use your facilities. Requiring a certificate of insurance from the group is important to verify the existence of their liability coverage. This is an indication of their ability to pay in the event of loss. We recommend that you require they carry an amount of insurance at least equal to the limits of your liability policy.

2. Have your school named as an insured on the sponsoring group's liability policy. Having your school named as an additional insured on the community group's policy provides additional protection. In the event circumstances are such that you cannot avoid liability, you can look to the group's policy to participate in the loss.

3. Require a signed release from the sponsoring group. A signed release is important as it shows the intent to transfer liability back to the party with primary responsibility, that is, back to the sponsor of the activity. The release should be a legal document, therefore, it should be drawn up by your attorney. Generally, the wording should state that the group saves and holds you harmless from any and all liability for injury or damages resulting from the group's activity in your facilities.

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Risk Financing TechniquesTo be effective, all three steps should be followed and the procedure strictly enforced. This can be accomplished by handling all requests for use of school premises through the business office. The business office can provide a building use request form to any group that wants to use the school. In addition to the three requirements we have already outlined, this form could set forth the rules and regulations which govern the use of school facilities. This may represent some inconvenience to the group requesting use of your facilities; however, it is important to avoid loss situations whenever there is a practical alternative.

The importance of this procedure can be seen in an example of a loss that occurred in one school. A community group requested use of a building for an athletic activity. They had a policy of obtaining waivers of liability but it was not enforced. A participant was injured and a large lawsuit resulted naming the sponsor and school as defendants. The liability in this situation is complicated because a school official opened the building for the group and remained as a spectator.

The sample an the following pages provides an example of what we feel should be included in a Building Use Request Form, but as with any legal agreement, the advice of legal counsel should be sought in developing the exact wording.

(Provided by Utica National)

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Risk Financing TechniquesTHE ADMINISTRATION IS RESPONSIBLE FOR USE OF ALL SCHOOL FACILITIES. IN ORDER THAT

THEY MAY CONSIDER YOUR REQUEST FOR THE USE OF SCHOOL, FACILITIES, KINDLY COMPLETE THE FOLLOWING FORM:

XYZ SCHOOL

2 Elm Street

Middleburg, Any State 12345

Phone – 372-4100

I. BUILDING USE REQUEST:

The __________________________________________(Organization) requests the use of the school

__________________________________(Room or Rooms) at _______________________(School)

For the purpose of ____________________________________________________________________

on_____________ (Day), _____________(Date) from ____________ to _________(Time)

Will activity be open to public ____________Yes ____________ No

Admission will/will not be charge; proceeds will be used for: ________________________________

_____________________________________________________________________________________

Name, address and telephone number of person responsible on this occasion:

_____________________________________________________________________________________

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Risk Financing TechniquesII. INSURANCE INFORMATION

Do you (the requesting organization), have an in-force public liability policy?[ ] Yes[ ] No

If yes, what are the limits of liability?

Bodily Injury $ _____________Property Damage $ ________________

III. RULES GOVERNING USE OF FACILITIES BY COMMUNITY GROUPS:

A. No smoking is allowed except in designated areas.

B. No drinking of alcoholic beverages is permitted.

C. Activity shall be restricted to that area for which permission is granted.

D. The activity shall not extend beyond the hours approved in the request.

E. All programs shall be planned so they do not interfere with the regular day school schedule.

F. The organization using the building shall be responsible for moving its equipment into and out of the building.

G. The supervisor in charge of the activity shall be present before the activity is due to start and remain with the group until all have left.

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Risk Financing TechniquesH. In the absence of the building principal or administrative personnel, the custodian is

charged with the responsibility of the building.

I. School authorities must have free access to all rooms at all times.

J. Where custodial assistance must be hired, a charge will be made and must be paid within 30 days.

K. Room(s) or facility used by applicant will be carefully examined after use. The applicant will arrange for prompt payment of any loss or damage occurring as a result of use of school property.

L. No school property or equipment is to be altered or removed from the premises.

M. The using organization shall be required to furnish public liability insurance with limits at least equal to those of the school. (See Item II).

N. A Certificate of Insurance, with proper limits of liability, shall be submitted as evidence of insurance coverage at least three days in advance of the event and must designate both the using organization and the school (legal name) as insureds. The absence of such a certificate will preclude use of the facility.

O. This license is revocable at any time by school authorities.

P. No reservation will be made until this application is returned and approved by the school's senior administrative official.

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Risk Financing TechniquesI agree on behalf of the above indicated organization that all members and guests will observe the above regulations and that we, individually, and as an organization, will assume full financial responsibility for any and all damages done to (name) school property during the above indicated period of use. We also agree that our organization will at all times hereafter indemnify the above-named school against any loss, damage or expense of any kind, which said school may sustain or incur because of use of the above described building by our organization and we will further hold said school harmless for loss of any kind in connection therewith.

Signed: __________________________(Requesting Officer) Date: ____________

(Dis)Approved:______________________ (School Official) Date: ____________

(Provided by Utica National)

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Sample School Facility Use Agreement_________________________________________________________(herein after referred to as the User(s)) and ____________________________________________ School District (hereinafter referred to as the School), agree to allow the following described room(s) or facility(ies):

_____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

to be used by User(s) subject to the following terms and conditions which are agreed to by the respective parties.

1. The facility(ies) will be available for use on the following dates and times:

Dates from: ____________________through _______________________________Between the hours of ____________________AM/PM and ___________________________AM/PM

Purpose/type of function(s):

________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

Number of people attending:_________________________

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Sample School Facility Use Agreement2. The User(s) to pay a use fee of $_______________ per _______________, the fee to be

paid To__________________________________ on or before_____________________________.

3. The User(s) to pay a bond/ deposit of $ ________________________ refundable at the expiration of the agreement provided that the facility(ies) used has/have been left in an appropriate condition.

4. The User(s) to observe the following opening and securing arrangements:

______________________________________________________________________________________________________________________________________________________________________________________________________________________________

5. For the purposes of this agreement, the User(s) to use only those parts of the buildings or grounds specified above, and the entrances to those parts.

6. The User(s) is to ensure that any furniture and equipment moved during use of the premises is replaced, that the premises will be left in a clean and tidy condition, that proper care will be taken of the premises during use and any damage from such use, whether caused by negligence, recklessness or the willfulness of the User(s), or the servants, agents or invitees of the User/s), is repaired at the User(s) own cost.

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Sample School Facility Use Agreement7. The School reserves the right to terminate this agreement immediately by notice in

writing at its absolute discretion if clause 6 is contravened by the User(s) (or the servants, agents or invitees of the User(s)) at any time.

8. The User(s) is to take out and maintain current throughout the term of this agreement a public risk insurance policy with a reputable insurer, having an A. M. Best rating of A- or better, in which (a) the School is indemnified in an amount not less than $2 million for any claims whatsoever (including injury to persons or damage to property) arising out of the use of the School premises by the User(s); (b) the School is named as an Additional Insured under the policy; and (c) the policy or a certificate of insurance must be produced to the School prior to use of the facilities. User(s) and the School agree that any insurance policies procured by User(s) that provide benefits or protection for the School shall be primary and that any policies procured by School that might happen to provide protection or benefits to the School arising out of User's use of the School premises shall be excess.

9. The User(s) agrees that no hazardous materials, including but not limited to, flammable materials or liquids, fireworks, pyrotechnic devices, explosives, poisonous materials or plants, strong acids or caustics, or dangerous animals will be brought onto the premises or used in any way while occupying any portion of any School owned property except as specifically listed below:

______________________________________________________________________________________________________________________________________________________

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Sample School Facility Use Agreement10. The User(s) agree that no amusement rides or attractions, including but not limited to, trampolines of any type, enclosed or air supported structures of any type, climbing walls, climbing ropes, firearms or shooting activity, bow and arrow shooting activity or equipment or devices related thereto will be brought onto the premises or used in any way while occupying any portion of any School owned property except as listed below:

________________________________________________________________________________________________________________________________________________________

11. The User(s) must give written notice to the School of any accident resulting in bodily injury or damage to property of the School or others occurring on School premises or in any way connected with the use of School premises within 24 hours of the accident. The notice must include details of the time, place and circumstances of the names and addresses of any person(s) witnessing the accident.

12. The User(s) to observe the following extra conditions:

____________________________________________________________________________________________________________________________________________________________________________________________________________________________________

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Sample School Facility Use AgreementIn addition, the User(s) undertakes and agrees to indemnify and hold harmless the school, school board, school board elected and appointed officials, administrators, principals, teachers and all other school employees, volunteers or representatives, and all persons and bodies corporate acting for or on behalf of them, against all liability, claims, demands, actions, suits, damages, proceedings, costs and expenses (including reasonable attorney fees) whatsoever (including injury to persons and damage to property) for which they may be or become liable directly or indirectly arising out of the use of School premises by the User(s) (or the servants, agents or invitees of the User/s)), and for such further sums in excess of those contained in any insurance policy procured by User(s) relating to the use of the School premises or for such amounts as may not be payable under any such insurance policy. Accepted on behalf of (User(s)):

______________________________________________

By: ___________________________________________

Title:. ___________________________________________

Date: ___________________________________________

Contact person _________________________________________

Telephone Number ______________________________________

E-mail address__________________________________________

___________________________________________School District

By: _____________________________________________________

Title: ____________________________________________________

Date: ___________________________________________________

You may make and distribute copies of this publication for your internal use provided that you always: reproduce our copyright notice and any other notice of rights, disclaimers, and limitations, and provided that no copy in whole or in part is transferred, sold, lent or leased to any third party. This facility use agreement is simply an example of such an agreement. This sample should not be construed as being our recommendation or endorsement of facility use policies or agreements that are appropriate for your particular school. In providing this sample to you, we are not intending to provide legal advice. You should review and develop your school's policies and agreements with the advice of your own legal counsel.

(Provided by Ohio Casualty)