The rental of function halls at Elk Lodges may help keep the roof over your head, but it is important to know that any time you rent the hall to a member or non-member, the Lodge is taking a risk of liability for whatever may happen during the rental. The Grand Lodge outlines specific things that must be done to protect the Lodge in the Elks Liability Insurance Program Manual. This This applies to anyone
renting the facilities for a single event and/or on a long-term basis; anyone working on your premises (or during a sponsored event); and any independent contractor performing services for your Lodge, be they a building contractor, restaurant or bar concession, or corporate reception. A contract with a hold-harmless provision must be obtained, and the Lodge must be named as Additional Insured.
Your lease/rental agreement must include a list of insurance requirements and a hold-harmless provision establishing the responsibilities of the tenant/renter with respect to liability claims arising out of the event and/or their use of the Lodge facilities. The tenant/renter should provide you with evidence of insurance that names the Lodge as an “Additional Insured” before they are given access to the Lodge facility (being named as an Additional Insured on the user’s policy will provide the Lodge with liability protection under the user’s policy, which will help keep the costs of your program down).
Any entity or individual—including a Lodge member—renting or using the Lodge should provide a signed indemnity agreement that includes language similar to the sample indemnification form found on the next page. Anyone renting or using the Lodge should also name the Lodge as additional insured on their liability policy. If this cannot be done, Gallagher’s Facility Rental Program at www.elks.org/resources/accident/ provides General and Liquor Liability coverage that includes the Lodge AND the user/renter as named insureds (Lodges can call Gallagher at (800) 421-3557 for more information on how to obtain such policies).
Those who do not comply with this procedure cannot be allowed to use the Lodge facilities. What information do you need?
It is important to establish your priorities as to who should be allowed to use the Lodge and in requesting and reviewing evidence of insurance.
The evidence of insurance should include:
- Name of insurance company
- Named Insured and address
- Description of Coverage — Comprehensive General Liability, including
Products, Contractual Liability insuring the indemnification and Workers’
Compensation - Policy numbers
- Policy periods
- Limits of Liability
- Description and location
- The Lodge name, number and address as Certificate Holder and an indication the Lodge is named as Additional Insured
- Notice of cancellation provision
- Authorized signature
In addition, Lodges seeking indemnification from renters and contractors can use the following language in their agreements:
Indemnity for Groups or Individuals Renting/Using/Leasing Lodge Facilities For valuable consideration, the receipt whereof is hereby acknowledged, (the facility user) does hereby agree to indemnify and hold harmless the (Lodge name/number) from any and all claims, costs of defense or expenses arising out of (description of activities), except for the sole negligence of the Lodge. (The facility user) further agrees to name the (Lodge name/number) as additional insured under their general liability policy, which will be obtained from an insurance company the Lodge finds satisfactory and provide the Lodge with:
(1) a separate endorsement reflecting the Lodge’s status as an additional insured.
(2) a provision in the policy for thirty (30) days’ notice of cancellation or material change; and
(3) evidence of the following insurance coverage (such coverage and certificate must be issued without any disclaimers or limitations)
As an alternative for those who do not want to obtain insurance on their own, a policy that policy that provides General and Liquor Liability coverage and includes the Lodge AND the user/renter as named insured can be obtained from the link below:
Through this online application form, you can obtain insurance on a per-event basis, and even pay for the coverage online.
For more information on the Elks Insurance Program visit: Safety and Insurance (elks.org)