Rental Hall Agreements

Many Emergency Service Organizations (ESOs) have social halls, picnic pavilions, meeting rooms and other facilities that are available for use by the public. While these are typically good sources of revenue and are also a
good public relations tool, they also present additional liability exposures to the ESO.

For ESOs that rent facilities to others, VFIS recommends the use of a contract that details the terms and conditions of the rental and provides that the lessee/renting party will hold the emergency service organization harmless in the event of injury or other damages related to the use of the facility. When reviewing Rental Agreements, VFIS Risk Control has found that many contracts may not be appropriately worded with necessary protections or are incorrectly completed, often with provided spaces left blank.

This communiqué offers risk management guidelines to assist emergency service organizations in managing their liability exposures relating to rentals. It includes a sample rental contract with a hold harmless agreement that may be used in whole or as an example for an ESO. It is recommended that the agreement, whether sampled or developed, be reviewed by a local attorney.

Consider including the following points if developing a form:

• Make certain that that all parties who are actually responsible for the event are listed and obtain appropriate signatures.
• Define what is being leased including rooms, halls, picnic grounds, ball fields, additional structures, accessories, equipment and cooking facilities.
• Be aware of what type of events are going to take place and the events/activities are described in detail on the agreement in writing. It is important to know what kind of activities the renting party intends to have and specify any activities that the ESO does not want to have taking place on the premises.
• The laws of the state govern the leasing agreement. The parties shall agree that if any provision of the agreement is held to be invalid or unenforceable, all other provisions shall continue in full force and
effect.
• Require a Certificate of Insurance and a copy of the renter’s insurance policy showing the existence of liability insurance. Individuals will also be required to provide such insurance protection.
• Have a hold harmless and indemnification clause included in the contract to protect the organization’s officers and members against any demands, causes of actions or any other claim of the renting party, its members, agents, employees, subcontractors, patrons, guests or invitees arising out of or relating to the
leasing party’s rental.
• Include a statement explaining that the ESO has the right to cancel the agreement if the renting party or other individual fails to comply with the terms and conditions of the rental agreement.
• Inform the leasing party, that the ESO reserves the right for its members, representatives and agents to have free access and the right to enter the premises.
• Specifically list the amount of any deposit required, when the deposit is required to be paid and what takes place for the deposit to be returned.
• Indicate the maximum capacity of the facility and strictly adhere to local building codes.

• If alcohol is served/consumed, a licensed bartender or certified and trained person is required in accordance to applicable state liquor laws. This includes, but is not limited to, obtaining the appropriate
  state license and appropriate insurance coverage for the event. Post written liquor rules and regulations within the event area.

Have forms/contracts reviewed by an attorney for compliance with local laws and suitability to the particular needs of the ESO involved. Once developed, the contract may be used for all events (this would include times
when the facility is provided for use without a charge or being used by a member for a private party). Provide a copy of the contract to the lessee and keep the original on file.

This is a sample guideline furnished to you by VFIS. Your organization should review this guideline and make the necessary modifications to meet
your organization's needs. The intent of this guideline is to assist you in reducing exposure to the risk of injury, harm, or damage to personnel,
property, and the general public. For additional information on this topic, contact your VFIS Risk Control Representative at (800) 233-1957.

Available Resources

• Certificates of Insurance
• Rental Agreements