Facility Rental: Best Practices for Non-School Use
As community hubs, school districts often open their doors to outside organizations for events, activities, and gatherings. This facility rental for non-school use can benefit the community, but it also comes with potential risks. School administrators must take proactive steps to protect district property, reduce liability exposure, and ensure compliance with state laws.
Whether your district is renting out fields, gyms, auditoriums, or classrooms, it’s important to have clear procedures in place to safeguard your facilities and financial interests.
Why Protection Measures Matter
Allowing outside groups to use school property can expose the district to physical damage and liability risks. Without proper agreements and insurance requirements, districts may face costly claims or disputes.
The best protection starts with clear policies, contractual safeguards, and appropriate insurance requirements for all facility users—whether they’re for-profit, nonprofit, or school-affiliated groups like PTAs, PTOs, or booster clubs.
Facility Use Agreements
Every rental should be governed by a written facility use agreement. This agreement should:
Require proof of general liability insurance with specified minimum limits.
Name the school district as an additional insured on the renter’s policy.
Clearly state that the district is not liable for personal injury or property damage arising from non-school use.
Be signed before any use of the facility.
Certificate of Insurance
A Certificate of Insurance should be submitted prior to the event or rental period. The certificate should confirm:
Coverage is current and meets required liability limits.
The school district is named as an additional insured.
Applicable auto liability and workers’ compensation coverage is in place if relevant.
Recommended Insurance Requirements
While each district’s legal counsel should review specifics, common requirements include:
General Liability Insurance: $1,000,000 per occurrence for bodily injury and property damage.
Business Auto Liability: $1,000,000 combined single limit for bodily injury and property damage (including owned, hired, and non-owned autos).
Workers’ Compensation & Employer’s Liability: $500,000 per accident/disease/policy limit.
Coverage should remain in force throughout the term of the agreement.
Hold Harmless and Indemnification
Including a Hold Harmless and Indemnification clause in the facility use agreement provides an added layer of legal protection, ensuring that the renter assumes responsibility for claims resulting from their activities.
State Law Considerations
Public school districts are subject to unique legal limitations regarding liability and indemnification. Districts cannot waive governmental immunity or contractually assume liabilities beyond those allowed by law. It’s important to work with legal counsel to ensure contracts comply with state laws while still protecting the district’s interests.
Renting school facilities can strengthen community ties—but it should never put your district at unnecessary risk. With well-structured agreements, clear insurance requirements, and legal oversight, you can open your doors while keeping your people, property, and mission safe.
