TULIP insurance: What is it & who needs it
A TULIP policy covers tenants and users of a property, usually in the case of an event. This guide will walk you through what you need to know about TULIP liability insurance.
If you’ve ever kept a garden, you might’ve dreamt of one day protecting and insuring all your plants, down to each and every flower. Unfortunately, there isn’t much insurance tailored specifically to flowers—at least not yet.
TULIP insurance, despite its name, does not cover tulips. It covers tenants. And users…
Specifically, a TULIP policy covers tenants and users of a property, usually in the case of an event. This guide will walk you through all you need to know about TULIP liability insurance, from what it covers to how it interacts and synergizes with other kinds of insurance you might already have.
In insurance terms, the acronym TULIP generally stands for a version of tenant users liability insurance policy (or protection, or program, depending on the provider). It’s also sometimes called “events coverage.”
It functions as additional insurance in conjunction with policies held by the owner and tenants (or users) of a venue, protecting against mishaps or problems that aren’t covered by the preexisting policies.
A TULIP policy provides coverage for third-party claims pertaining to special instances in which a venue is rented out to a user, typically for an event. The policy term may span only the one special event itself, or it may be a longer-term policy that covers a number of events.
The third-party claims covered often fall outside the normal coverage provided by the venue owner’s and renter’s basic insurance policies, so the TULIP liability insurance fills the gap.
TULIP insurance involves a very specific set of circumstances. This makes it a bit complex. To understand how TULIP coverage works, let’s first establish who the relevant parties are. Then, we’ll look at what is and isn’t covered. Finally, we’ll look at what influences costs of TULIP liability insurance.
A TULIP plan involves many parties. Technically speaking, a TULIP policy puts three main parties together:
In practice, the owners are often institutions with spaces big enough for events, such as universities, churches, concert halls, or other cultural centers. The third party users may be cultural producers, such as music festival organizers, or other events-based collectives or outfits.
The TULIP policy protects the owner and user against third-party claims or lawsuits filed by guests or attendees. Typically, these claims relate to the event that the TULIP policy covers.
Let’s look at what exactly these claims involve.
The kinds of claims that a TULIP policy covers have to do with risks inherent to the event.
Specifically, TULIP insurance covers third-party claims related to personal or bodily injury sustained as a result of attending the event. For example, if a concert-goer were to fall down stairs while climbing to their seat, associated legal and medical costs may be covered.
Importantly, claims related to personal injury on a property that are not related to the event may not be covered. For instance, injuries related to parts of a property not leased for the event would likely not fall within the coverage limits.
The specific costs of a given policy depend upon the risks involved. These risks are calculated by the type of event, the venue, and the relevant parties.
For instance, some events have higher or lower risk, due to factors including but not limited to:
Size and conditions of the venue – The size, shape, and capacity of a venue, along with its characteristics (spacial, material, etc.) influence the level of risk.
Number and qualities of guests – The expected number of attendees, or guests, is important. Also, the relative risks associated with individual guests may also be a factor. If populations predisposed to risky behaviors (adolescents) or who are at-risk themselves (those with disabilities, the elderly, etc.) are expected to attend in high volume, costs may be impacted.
Nature of the event – The kinds of activities that comprise the event may be grounds for higher or lower costs. A large and rowdy rock concert or martial arts competition would likely be considered riskier than a small-scale book fair. Some factors that may affect cost include:
Insurability of parties involved – The overall risk profile, including insurance and claims history, of the owner and user may also impact costs.
Given that not all events are created equal, TULIP policy costs can vary. At the end of the day, it’s all about how much risk is inherent to a given event and the space it’s hosted in.
If you’re a venue owner looking to rent out your space, or an organizer looking for a space to rent, you know that the events in your future carry a certain amount of risk. But, as they say in show business, “the show must go on”—so you need to cover those risks!
As complex as TULIP liability insurance might be, not all insurance has to be that way. Here at Thimble, our mission is simplifying insurance coverage for small businesses.
Most importantly, we’re revolutionizing insurance by making these policies customizable to your exact, unique needs. Like TULIP plans, our offerings can cover your short-term needs, down to the hour, day, or month. We provide insurance that works when you do, so you don’t pay for coverage you don’t need.
Finally, our coverage is extremely easy to get. Click “Get a Quote” or download the Thimble app, and you can go from no coverage to being protected from liability in 60 seconds.
If you’re going to work at an event (perhaps as a vendor), then you’re going to want to ensure that you have a policy that works on your terms. Whether that’s event insurance, general liability insurance, and professional liability insurance, we have a plan that can help protect you.
Now that you have all you need to know about tenant users liability insurance policies, you’re well equipped to make a decision about whether a TULIP plan is right for you.
Get covered with confidence. Then, deliver an unforgettable experience that’ll have people lined up around the block waiting to get in.
Written on May 14, 2020 | Modified on: August 23, 2021
Our editorial content is intended for informational purposes only and is not written by a licensed insurance agent. Terms and conditions for rate and coverage may vary by class of business and state.