Ask the Experts: TULIP Coverage

Does my district need special coverage for special events held on rented-out district property?

While the district doesn’t need special coverage for such events, the event organizer may be well-advised to obtain it. Summer is filled with endless activities such as festivals, and outside organizers often host these exciting events at district facilities. This can be a huge headache for the district if someone is injured or if there is damage to property. Many districts use waivers and/or request organizers to provide their own insurance and require the district to be an ‘additional insured’ on those policies.

While waivers can add a level of protection against claims, the district could still be found responsible for some costs associated with damages or injuries that take place on premises. In this situation, the Pool may pursue recovery of any losses for which the at-fault party was responsible, which could potentially be an extreme cost to the uninsured organizer. Both parties would essentially have to deal with the claim’s financial burdens.

Fortunately, there is an option for renters to purchase coverage for these types of events. The CSD Pool has selected OneBeacon Entertainment as the coverage of choice for “Tenants Users Liability Insurance Program” (TULIP) coverage. This third party liability coverage protects both the district and renter against claims from injured guests and includes an option for property damage to the facilities. In addition, there is no charge to the district since the renters/users pay for the policy. This program is separate from the Pool’s coverage, so participation is optional and based on your district’s needs and how your facilities are used.

How does it work?

Pricing for a TULIP policy is based on the type of event, the number of days coverage is needed, number of attendees, and any special requirements such as liquor liability. If an organizer is using a district’s property for a week-long sports camp, the activities involved will naturally add more to the premium.

The CSD Pool does not profit from any TULIP coverage but facilitates our members’ use of it as a service. To set up the policy, we provide OneBeacon with an application that includes the locations of your facilities and a brief description of the services provided.

Once the application is finalized and accepted, the district will have access to an online account where either the district or the renters can purchase coverage for specific events. OneBeacon will also automatically issue a certificate of insurance and send directly to both the district and the renter. OneBeacon’s TULIP Program requires a commitment of at least $1,000 in total annual premium per year in order to keep the policy active; however there is no penalty if this minimum is not met.

It is completely up to the district if they would like to enforce this type of coverage on uninsured renters/users. As always, we suggest consulting your attorney regarding waivers and insurance requirements. If your district is interested in more information or would like to set up coverage under the TULIP program, contact your broker or email the Pool, or visit OneBeacon’s website here.