Municipal RMs Need St. Patrick's Day Plan, Not A Shamrock

NU Online News Service, March 12, 1:29 p.m. EST

St. Patrick's Day parades and other festivities may mean entertainment for the public, but for municipal risk managers they represent a need for pre-planning, coordination and contractual risk transfer, said an insurance expert.

Bruce Lunning, Travelers senior risk control liability specialist, explained that "pre-planning of an event is crucial for identifying possible exposure and risks."

He said small cities and towns should be in control of all celebration aspects including planning the parade routes and training any volunteers working at the event about what activities are allowed.

According to Mr. Lunning, a written checklist can ensure that all areas are being addressed. Additionally, this list provides documentation for future reference.

Coordination during the planning process with law enforcement, the fire department, medical providers, emergency service personnel and other groups can help reduce liability, he said.

Festivities, he noted, will often include active involvement of contractors, vendors and concessionaires as well. Municipalities should therefore consider risk transfer, insurance requirements and permits as crucial points of risk management.

"Vendors of beverages and food should be required to have the proper licenses and permits for compliance with local ordinances and regulations, especially if they sell alcoholic beverages," Mr. Lunning advised.

It's critical to address risk transfer in these situations, requiring the contractor to provide evidence of insurance coverage and naming the municipality as an "additional insured," he said.

The municipality should require limits adequate for the exposures presented by the particular event. A contractor who provides fireworks, for example, should be required to have higher limits than a small music ensemble as the exposure is greater, Mr. Lunning explained.

These important risk control considerations should go into the planning and execution of every special event. Identifying exposures prior to the event and coordinating with key players to ensure that insurance requirements are met can result in a city's successful St. Patrick's Day, he counseled.