Special Events Require Special Attention

Ann Hansen
Director of Operations
Public Risk Insurance Agency

Special events sponsored by public entities or allowed to be held on public property can present additional and sometimes uninsured exposures.   Do you have a written procedure to handle these activities?   Special events can cause a multitude of possible exposures.   Let’s take an example of a civic group that wants to hold a parade and festival at your local park.   Ask the following questions:

            Q Who will provide security?

            Q Will there be fireworks?

            Q Will there be animals performing or on display?

            Q Will food be sold?

            Q Will alcohol be sold?

            Q Does the expected attendance cause traffic problems within the area?

These are just a few of the exposures that need to be addressed in order to protect your governmental entity and the citizens that will be attending.   The best possible answer is that you transfer the liability of these exposures to the sponsoring group.   Obtaining a Certificate of Insurance and being named as an Additional Insured on the policies of the sponsoring group and vendors that are participating should be your first option.   Do the departments within your organization know what to look for on a Certificate of Insurance?

            Q What limits are acceptable?

            Q Which lines of coverage are necessary?

            Q Are you listed as an “Additional Insured”?

            Q Does the insurance company have an acceptable rating?

If you do not have written procedures regarding insurance requirements, now is the time to put them in place and then make sure all your departments know and understand them.   It is important for the public to know, too.

If the renting organization does not have insurance, consider these options: you can require them to purchase a Special Events Policy applicable to the sponsored event; for a private party, such as a wedding or reception, the individual’s homeowners policy may be extended to cover liability from the event; or, you can decline to allow the use of your facilities for any group without proper insurance.   The costs for Special Event Policies vary greatly, and are based on the type of event and limits of liability written.

For events that you are sponsoring, the same questions apply.   Do you know if your coverage agreements or policies extend protection for these activities?   Before you schedule that next parade, sporting event, art festival, or rent the local hall out for a wedding, call your insurance agent and have them review your current coverage agreements with you.   Be sure you know what coverage may or may not be in place.   We all have a common goal to see that there are no surprises when a claim occurs.

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