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Oxford commissioners press for indemnification, $2M lessee liability in OCC lease
Summary
At a special commissioners work session, Oxford officials pushed to add explicit indemnification and insurance requirements to short-form use agreements and long-term leases for the Oxford Community Center (OCC), including a certificate of insurance five days before events and $2 million minimum liability for lessees.
Oxford commissioners used a special work session to press OCC users for clearer indemnification and insurance protections that would shield taxpayers if a large injury or lawsuit arises. The Chair (speaker 3) told OCC representatives the town wants explicit hold-harmless language and insurance requirements in both long-term leases and one-off use agreements.
"The insurance requirements are $2,000,000 in aggregate of liability coverage that you name the OCC and the town as additional insurance," the Chair said, outlining a requirement that lessees name the OCC and town as additional insured and provide a signed certificate of insurance. Questioners and town staff emphasized that coverage must be delineated in a COI and that a lapse in coverage should trigger termination rights in a use agreement.
Commissioners and OCC representatives also debated whether indemnification shifts municipal exposure to private users if a defendant’s insurance is denied. A participant who asked about indemnification versus insurance cautioned that "indemnification is even if the insurance policy doesn't cover it, we're still on the hook" (speaker 6). Commissioners said the town’s obligation to protect public funds makes explicit indemnification necessary even as they discussed realistic limits when a private user lacks deep pockets.
The workshop concluded with general agreement on drafting language: short-form one-off use agreements should include the insurance and indemnification terms modeled on the Oxford Kids Camp lease for major long-term tenants, and the town will work with OCC staff to produce aligned language for staff review and a future agenda item.
