Certificates of Insurance, Additional Insured Status, and Facility Use Agreements:
Important Risk Management Tools for Churches and Ministries
Churches and ministries often open their facilities to community groups, outside organizations, ministries, schools, nonprofits, and special events. While sharing your facilities can be an effective way to serve your community, it can also create additional liability exposures that should be carefully managed.
From an insurance and risk management perspective, it is important to understand the role that Certificates of Insurance (COIs), Additional Insured status, and Facility Use Agreements play in helping protect your ministry.
What Is a Certificate of Insurance (COI)?
A Certificate of Insurance (COI) is a document that provides evidence that an insurance policy exists at the time the certificate is issued.
Think of it as a "snapshot" or "bird's-eye view" of an organization's insurance coverage. A Certificate of Insurance typically includes:
- Name of the insured organization
- Insurance carrier information
- Policy numbers
- Effective and expiration dates
- Types of coverage
- Policy limits
- Additional insured status, if applicable
It is important to understand that a Certificate of Insurance is generally issued for informational purposes only and does not typically amend, extend, or alter the coverage provided by the actual insurance policy.
How Do I Obtain a Certificate of Insurance?
You may be asked to provide a Certificate of Insurance when entering into a contract, leasing facilities, hosting an event, or participating in activities where another party wants confirmation that your ministry maintains insurance coverage.
If your church or ministry needs a Certificate of Insurance, you can generally request one through your insurance agent, broker, or insurance carrier. In many cases, certificates can be issued at no additional charge, although carrier practices may vary.
The certificate can then be provided to the requesting party as evidence of current insurance coverage.
When Should a Church Request a Certificate of Insurance?
As a best practice, ministries should consider requesting a Certificate of Insurance whenever:
- Facilities are leased or rented to outside groups.
- Community organizations use church property.
- Contractors are performing work on church premises.
- Vendors are providing services.
- Special events are hosted by third parties.
- Written agreements transfer responsibilities between organizations.
Obtaining a Certificate of Insurance can help verify that the other party maintains insurance coverage and may provide valuable information regarding policy limits and coverage types.
However, churches should recognize that the existence of a Certificate of Insurance alone does not guarantee coverage for a particular claim or loss. Coverage determinations ultimately depend upon the policy language, endorsements, exclusions, facts of the loss, and carrier interpretation.
What Is an Additional Insured?
Some agreements require one party to be added to another party's liability policy as an Additional Insured.
Generally speaking, an Additional Insured endorsement may provide certain liability protection to the additional insured party arising out of the named insured's operations, acts, or activities, subject to the terms, conditions, limitations, and exclusions of the policy.
Being named as an Additional Insured does not make the church a policyholder and typically does not give the church authority to:
- Cancel the policy
- Change coverage terms
- Modify limits
- Renew the policy
Because endorsement wording varies significantly among insurance carriers and policies, ministries should work with their insurance professional to understand the scope of protection being provided.
When reviewing Certificates of Insurance, it is prudent to verify that any required Additional Insured endorsement has actually been issued when contractually required.
Facility Use Agreements:
A Critical Risk Management Tool
Before allowing an outside group, organization, ministry, business, or individual to use church property, a written Facility Use Agreement should be strongly considered.
A properly drafted agreement can help establish expectations, define responsibilities, and support your ministry's broader risk management strategy.
Because legal requirements vary by state and jurisdiction, churches should consult competent legal counsel when developing or revising facility use agreements.
A Facility Use Agreement Should Typically Address:
- Areas of the facility being used
- Dates and times of use
- Purpose of the activity
- Rules and operational requirements
- Responsibility for property damage
- Insurance requirements
- Safety expectations
- Indemnification provisions
- Defense obligations where appropriate and legally permissible
- Hold-harmless provisions where appropriate and legally permissible
A written agreement can help reduce misunderstandings and provide important documentation if a dispute arises.
Recommended Insurance Requirements
From an insurance and risk management standpoint, churches may wish to discuss with legal counsel and their insurance professionals whether facility users should be required to:
- Maintain commercial general liability coverage or other appropriate insurance for their operations.
- Provide evidence of insurance through a current Certificate of Insurance.
- Name the church as an Additional Insured when appropriate.
- Maintain insurance limits consistent with the nature of the activities being conducted.
- Provide updated insurance documentation upon policy renewal if the relationship continues.
Specific insurance requirements should be based on the exposures associated with the activity, contractual requirements, carrier recommendations, and legal advice appropriate to the jurisdiction.
Why Risk Transfer Matters
One of the most important concepts in ministry risk management is risk transfer.
When a church allows another organization to use its property, there is often an assumption that the outside organization will be responsible for its own operations. However, if proper agreements and insurance requirements are not in place, the church may find itself drawn into claims, litigation, or insurance disputes arising from the activities of others.
A useful rule of thumb is this:
When you rent or lend your facilities, you may also be increasing your liability exposure.
Without appropriate risk transfer measures, claims may ultimately affect the church's insurance program, claims history, loss experience, and future insurance costs.
For this reason, from an insurance perspective, we generally recommend that ministries consider implementing reasonable risk transfer strategies, which may include:
- Signed Facility Use Agreements
- Hold-Harmless agreements where legally appropriate
- Indemnification provisions where legally appropriate
- Certificates of Insurance
- Additional Insured status when appropriate
- Ongoing review of facility usage activities
The objective is not to avoid ministry opportunities but to ensure that responsibility for operations remains with the organization conducting those activities whenever possible and legally permissible.
Final Thoughts
Certificates of Insurance, Additional Insured endorsements, and Facility Use Agreements are important tools that can help churches and ministries better manage risk and document expectations when third parties use church facilities.
While these tools can enhance a ministry's risk management program, they should be viewed as part of a broader strategy that includes sound policies, ongoing training, legal review, and periodic consultation with qualified insurance professionals.
Every ministry's circumstances are unique, and insurance, legal, and contractual considerations should be evaluated based on the specific facts and exposures involved.
You don’t have to navigate this alone. Our team at Republic Insurance Group exists to support ministries and nonprofits with clarity, stewardship, and confidence. We don’t simply identify risks — we help you understand and address them in ways that free you to lead boldly.
Serving ministries isn’t just our profession. It’s our calling.
Our mission is simple: to help ministries pursue their God‑given work with wisdom, courage, and faith.
If you’re new to Republic Insurance Group, visit Locations, select your office, and connect with us at:
https://www.republicinsurancegroup.com/contact
We’d be honored to walk with you.
Important Disclaimer
This article is provided solely for educational and informational purposes and should not be interpreted as legal, insurance, risk management, financial, or other professional advice.
Laws, regulations, court decisions, insurance policy provisions, underwriting requirements, and carrier guidelines are subject to change and may vary based on jurisdiction and specific circumstances.
Insurance coverage determinations can only be made after a review of the specific facts, applicable policy language, endorsements, exclusions, and carrier interpretation. Nothing contained in this article should be construed as a guarantee, representation, or confirmation of coverage for any claim, event, activity, or loss.