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Ask the Experts: TULIP Coverage

Insurance topics can be confusing. This is where we hope to fill in those blanks by answering common questions about our coverages and programs.

My district rents out facilities for events. Should we require that users carry their own insurance?

Many districts host events and activities at their facilities, from weddings and seminars to sporting events and day camps. With all of these events, it is important that the district require the renter or user to carry insurance coverage. Third-parties without liability insurance often opt for Tenant Users Liability Insurance Protection (TULIP), which insures both the event organizer as well as your district against potential claims made by event attendees.

Naturally, the cost of coverage depends upon the type of event in addition to its duration and the estimated guest count. Food or alcohol service would also be attached to the TULIP premium. Many insurers offer TULIP programs that can scale to meet the requirements of both the district and the organizers.

While most insurers will cover a broad range of events, they may not sanction an event or activity deemed high-risk. The criterion used for high-risk evaluation is at the insurer’s discretion, meaning that an activity judged as high-risk by one carrier may be permitted by another.

For example, an insurer may exclude coverage for activities involving pets due to potential veterinary legal liability claims. Meanwhile, another insurer may offer coverage due to their experience with claims of that kind. Some insurers may only provide coverage only if there are no bounce houses or trampolines. It all depends on what the insurer defines as high-risk, and as such, your district may want to choose one insurer and develop a program with them.

After preliminary information is provided to the insurer regarding the district’s facility, the district will be set up in the program with a master certificate. From there, any prospective renter or user can obtain the coverage quickly. A certificate of insurance will then be issued to both the user and the district for each specific event.

Although event organizers and district managers may take necessary precautions to ensure safety standards are met for any special event, unforeseen circumstances can place your district at risk of liability for damages or injuries.

Due to its cost-efficiency and convenience, TULIP is the foremost choice in terms of liability coverage for third-party activities or events at your facilities. If your district is interested in more information or would like assistance on how to set up coverage under a TULIP program, contact your broker or email the Pool for more information.

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