St. Paddy's celebrations present exposures

While St. Patrick's Day parades and other festivities are entertaining for onlookers, public risk managers need to look at reducing exposures and preventing losses — which involve careful pre-planning, event coordination and contractual risk transfer, says one insurance provider.

“Pre-planning of an event is crucial for identifying possible exposure and risks,” noted Bruce Lunning, senior risk control liability specialist at Travelers. “Small cities and towns should be in control of all aspects, including planning the parade routes to training any volunteers working at the event about what activities are allowed.”

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A written checklist can ensure that all areas are being addressed, according to Mr. Lunning, who said such a list provides documentation for future reference.

Also important, he said, is to coordinate with other departments and groups during the planning process, such as law enforcement, the fire department, medical providers and emergency service groups. Coordination with these groups can help reduce liability, he noted.

Finally, festivities 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, said Mr. Lunning.

“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,” he 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 added.

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

These important risk control considerations should go into the planning and execution of every special event, Mr. Lunning advised.

Thus, identifying exposures prior to the event and coordinating with key players to ensure that insurance requirements are met can result in a successful St. Patrick's Day event in your city, he added.