The document discusses strategies for municipalities to manage risks associated with special events, including developing policies and applications to understand event details, implementing controls like security and medical plans, and using insurance, hold harmless agreements, and contracting to transfer liability to event organizers. It provides an overview of common event exposures, risk factors to consider, and insurance requirements to protect the municipality.

1. Managing and Insuring Your
Event Risks
Phil Cromer
Risk & Safety Services Manager
Municipal Association of South Carolina

2. Types of Special Events
• Parades • Block parties
• Cultural programs • Social events
• Festivals/Celebrations • Religious gatherings
• Musical concerts • First Amendment
• Community activities Rights activities
• Athletic events • Political events
- Any activity where large numbers of persons gather
- Activities for which licenses and permits are required

3. Who Are The Players?
• City/Town • Other Third Parties
– Dept./Director/Staff – Civic/service
– City-sponsored organizations
committee – Charities
– Promoters
• Non-Profit – Private/individual
• Chamber of – Social/fraternal
Commerce/Business – School
– Religious
– Political

4. Determine Entity’s Role /
Involvement
• Entity manages event
• Entity sponsors the event
• Organization works on behalf of the
entity
• Entity provides property/facilities/
equipment

5. Special Events = Special Exposures
• Organizations outside • Temporary set up and
of the entity location
• Short term exposures • Road/street closures
• Hazardous activities • Crowds of people
(entity has little or no
• Impact on non-
experience)
participating citizens
• Insurance issues and businesses
– Potential for uninsured
losses
• Reputation damage
• Stress on city services
• Disruption of regular
operations

6. Most Frequently Cited Risk Factors of
Special Event Organizers
• Sale and consumption of • Inexperienced security
alcohol
• Dangerous or hazardous
• Size of the crowd activity
• Threat of over-capacity • Weather conditions
crowds
• Lack of an evacuation
• Inexperienced organizers plan
• Poor communication • Free and uncontrolled
among interested parties admission

7. Specific Types of Exposures
• Liability • Loss of Income
– Premises (including sidewalks,
streets, parking lots, grassy areas, • Planning and setup of event
trees, etc.)
– Civil Rights • Volunteers
– ADA
• Amusement rides
• Injuries (fatal/non-fatal)
• Weather issues
• Security issues
• Parades
• Alcohol-related incidents
• Animals
• Crowd/traffic control
• Other exposures: candy,
• Fireworks food, baseball, X-Games
• Permitting • Reputation
• Terrorism

8. Boy breaks leg in parade mishap
Published Tuesday, December 08, 2009 8:34 AM
By Dan Brown
Berkeley Independent
“This is not the first accident involving the Moncks Corner Christmas Parade.
Several years ago a child ran into parade traffic to retrieve candy thrown
from a parade float and was struck by a vehicle. Since that incident parade
policy prohibits the throwing of candy from parade floats. “

9. Who is to blame?

11. S.C. Statutes
• South Carolina Tort Claims Act
• Outlines immunities for governmental entities
• Provides caps on damages
• South Carolina Recreational Use Statute
• Provides a gross negligence standard for land
utilized for recreational purposes without charge
• S.C. Amusement Rides Safety Code
• Requires sponsor of a fair or carnival or owner of
the land where located to make a visual inspection
of each amusement device at least once each
week during period of operation

12. Strategies for Success
(1) Identify and Analyze the Risks
– Adopt a special events policy
– Develop an application process to gather info
– Comprehensive planning and review
• Activities/unique characteristics/related events
• Location/resources/regulations & requirements
• Target audience/special needs/staff & volunteers
• Management/emergency response/security
• History/weather/perils

13. Special Events Policy
 Provides guidance for managing and regulating events on municipal
property
 Purpose: (1) to protect the health, safety, and property of
participants and attendees; (2) lessen impact of event on non-
participating citizens and businesses; (3) ensure appropriate parties
bear the costs of the event, and (4) lessen the burden on the
municipality and its operations
 Policy should outline:
– Role of the entity (municipality)
– What types of events are permitted
– Where these events are permitted
– How the entity’s name may be used to promote events
– What coverage and limits of insurance are required
– What services will be provided/required
– What fees are applicable

14. Special Event Application
 Outside parties should be
required to complete a
special event application.
 The application must be
comprehensive so that all
pertinent information is
gathered.
 The applicant should
specify any service,
material, or property that
is expected to be
provided by the entity.

15. Strategies for Success
(2)Develop Risk Controls
– Ensure compliance with applicable laws,
regulations, contractual obligations, and
industry standards
– Written plans should be developed for critical
areas:
• Health / safety
• Participant behavior / crowd control
• Security
• Parking and traffic

16. Site Evaluations
Identify potential hazards and
develop methods to control
Establish emergency and evacuation
plans
Train all staff and volunteers in
evacuation procedures
Develop contingency plans to deal
with emergencies or weather
changes
Make sure facilities are accessible to
persons with disabilities

17. Property Maintenance
Entities can be held liable for injuries arising out
of property that is poorly maintained or in
disrepair.
Abate known hazards on property owned and
maintained by the entity prior to the event.
Trash control

18. Medical Services
Staffed by trained personnel
Sufficient transportation
Coordination with police and fire officials
Determine access and egress routes for facility
Designate a spokesperson for dealing with the
media to address good or bad outcomes

19. Crowd Management
Different approaches depending on the size
of the event – arts & crafts festival vs. rock
concert.
If serving alcohol, it helps to have a secure
area
Temporary seating should be installed by a
professional.
Well placed signs identifying key areas
- first aid / restrooms/ exits

20. Security
Event security
Personnel needed
Training required
Maps of facility or event area
Communication procedures
Transportation
Handling of adverse behavior of crowds or individuals
Information booth
Coordination with local authorities

21. Strategies for Success
(3) Select Risk Financing Strategies
Purpose –To transfer the responsibility for
paying losses to the external or outside
hosting entity(s) or parties.
– Two options or methods of risk financing:
• Insurance
• Contractual transfer
– Hold harmless and indemnity agreements
– Lease provisions

22. Build Moats of Protection Around Your Entity
• Certificate of
Insurance
• Additional Insured
Status
• Hold Harmless
Agreements
• Indemnity
Agreements

23. Insurance
• Purchasing insurance is one way of transferring some
financial aspects of risk to another organization (insurer)
in exchange for a premium. Insurance, however, is not
a substitute for a commitment to managing risk.
Preventing harm to persons served by your organization
as well as protecting the organization’s assets and
reputation is the purpose of risk management.
• Managing your risks is a cheap and effective insurance
policy.

24. Insurance
 Request certificates and
additional insured
endorsements from all
parties involved.
General Liability, Automobile Liability
(as needed), and Workers’
Compensation and Employer’s
Liability (if appropriate) should be
required for businesses and
organizations participating in the
event.

25. Sample Insurance Requirements
TYPE Coverage Limits (Minimum)
GENERAL LIABILITY Bodily injury, property $1 Million / occurrence
damage and contractual
liability from their “work”
AUTOMOBILE Injury and damage from $1 Million combined
LIABILITY their operation of autos single limit per accident
(AS NEEDED)
WORKERS’ COMP & Work related injury or Statutory and $1 Million
EMPLOYER’S illness for their per illness and injury
LIABILITY employees
(AS APPROPRIATE)

27. Insurance
 Have proof of additional insured status through
a certificate of insurance policy endorsement or
broker confirmation letter.
 Policy should be primary to any coverage by the public entity
and the public entity’s coverage will not contribute.
 Request a certified copy of the policy and review
it, particularly the exclusions.
 Ensure that outside parties provide entity with
hold harmless/indemnification and defense
agreement in favor of the entity.

28. Insurance
 Certificates of insurance may not always be
practical for all participants
- Artists and craftsmen
- Hobbyists
 REQUIRE certificates of insurance from all
food/beverage vendors, entertainer promoters,
or race coordinators
 If entity-sponsored, check your insurance
coverage document for exclusions to coverage
(bungee jumping, amusement rides, etc.)
Consider purchasing Special Events coverage
for entity-sponsored events

29. Special Exposures
 Entertainers/Concert promoters
 Equipment suppliers
- Mobile bleachers
- Stages
- Decorations
 Vendors
- Food
- Alcohol
 Private security or other services
Legal counsel should be involved in
preparation and review of all contracts!

30. Private Use of Public Facilities
• Establish what types of groups and activities will and will not
be allowed to use public facilities
• Be careful not to use criteria that could be viewed as illegally discriminatory
• Consult legal counsel when setting terms of use
• Have a formal permit procedure process
• Information about the group, event, and name of contact person
• A fee schedule (if applicable) should be part of permit
• Rules and regulations
• Have in writing and furnish to user’s representative at time of permit
application
• Have representative sign acknowledgement of receipt and understanding
• Insurance requirements
• Establish insurance requirements, including requirements for
certificates of insurance and hold harmless agreements
• TULIP Program
• Security
• Ensure buildings and grounds are secure
• Inspect for hazards

31. What Events Are Covered Under My
Liability Insurance Policy?
Most liability policies do not contain a general exclusion
for special events. Coverage will apply to city activities
associated with a special event unless that particular
activity is itself excluded. Keep in mind that there are
exclusions for several kinds of activities often
associated with special events or community
celebrations.
Important
Check your liability coverage document
for exclusions!!!

32. Typical Special Event Exclusions
• Aircraft, Helicopter, Ballooning Rides
• Aircraft, Helicopter, Ballooning Shows

33. Typical Special Event Exclusions
• Archery
• Lifeguard operations
(Contracted)

34. Typical Special Event Exclusions
• Automobile, motorcycle, watercraft, aircraft
racing or stunting

35. Typical Special Event Exclusions
• Bungee jumping of any description

36. Typical Special Event Exclusions
• Skateboarding

37. Typical Special Event Exclusions
• Firework displays

38. Typical Special Event Exclusions
• Parachuting or Hang gliding

39. Typical Special Event Exclusions
• Concerts organized and promoted by
outside parties

40. Typical Special Event Exclusions
• Rodeos

41. Typical Special Event Exclusions
• Trampolines and rebounding equipment
(including inflatable devices)

42. Typical Special Event Exclusions
• Traveling carnivals, circuses

43. Typical Special Event Exclusions
• Temporary mechanical amusement
devices

44. Typical Special Event Exclusions
• Waterslides over 10 Feet (contracted only)

45. Two basic ways to handle the liability
exposure associated with excluded
activities:
1. Purchase special event coverage from an insurer who
specializes in that type of risk
2. Hire an independent contractor to conduct that
particular operation
• Hold harmless and indemnity agreement needed
• Require appropriate types and limits of coverage
• Have city named as “Additional Insured” on
policy
*Remember to obtain copy of their insurance
policy to insure the activity is covered and not
excluded!

46. Waivers or Pre-Event Releases
 The voluntary and intentional relinquishment of a known
right, claim or privilege.
 Advise and/or enhance a participant’s assumption of the
specific risks involved with the event in which they are
participating.
 Lawsuits arising out of these events can be better
defended when waivers/pre-event releases are used.
 Not a strong defense in a court of law.

47. Contract the Event
To an independent party such as an event
coordinator or contractor.
CAUTION: Too much control over the
independent contractor can spoil the independent
relationship.
Agree upon goals but do not retain the power to
control specific details of the work.

48. Conclusion
Special events must be carefully managed so
that the safety and health of the participants
is paramount, the protection of public
property is considered, and the impact on
non-participating citizens is minimized.
Departments within the locality must work
together to ensure a safe event and to
eliminate liabilities arising out special events.
Proper guidance and risk control procedures
can reduce the likelihood, as well as the
severity, of incidents that may occur.