Managing and Insuring Your Event Risks. Venyke Harley & Leigh Polhill Municipal Association of South Carolina

Transcription

1 Managing and Insuring Your Event Risks Venyke Harley & Leigh Polhill Municipal Association of South Carolina

2 Obviously, we need to be paying attention to risk management issues

3 Special Events Special Exposures Organizations outside of the entity Short term exposures Hazardous Activities the entity has little or no experience Temporary set up and location Crowds of people

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

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7 Who is to blame?

8 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

9 Strategies for Success Adopt a special events policy. Conduct pre-event planning using a committee or event coordinator. Administrative controls Traffic and parking Security Site evaluation Crowd management Medical services Use an application to help regulate and properly manage events sponsored by outside (third) parties.

10 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.

11 Request certificates and additional insured endorsements from all parties involved. Insurance - If at all possible, general liability insurance ($1,000,000 minimum) should be required for businesses and organizations participating in the event.

12 Insurance Have proof of additional insured status through a certificate of insurance policy endorsement or broker confirmation letter. Request a certified copy of the policy and review it, particularly the exclusions (more in a second ). Ensure that outside parties provide entity with hold harmless indemnification and defense agreement in favor of the entity.

13 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 Purchase Special Events coverage for sponsored events. If entity-sponsored, check your insurance coverage document for exclusions to coverage (more later)

14 Sometimes, you get mixed signals...

15 Exclusions Why? There are any number of reasons why something might be excluded: a. To avoid covering uninsurable losses (nuclear war) b. To avoid insuring losses that could be easily prevented (intentional damage) c. To eliminate duplicate coverage d. To eliminate coverage that most do not need (bungee jumping) e. To eliminate coverage for exposures that require special handling by the insurer (skateboard steam boilers) f. To keep premiums reasonable this overarching reason for all exclusions. If you covered everything, nobody would be able to afford insurance. parks,

16 Typical Special Events Exclusions Aircraft, Helicopter, Ballooning Rides Aircraft, Helicopter, Ballooning Shows

17 Typical Special Events Exclusions Automobile, Motorcycle, watercraft, aircraft racing or stunting

18 Typical Special Events Exclusions Archery Lifeguard operations (Contracted)

19 Typical Special Events Exclusions Skateboarding

20 Typical Special Events Exclusions Bungee jumping of any description

21 Typical Special Events Exclusions Firework displays

22 Typical Special Events Exclusions Parachuting or Hang Gliding

23 Typical Special Events Exclusions Concerts organized and promoted by outside parties

24 Typical Special Events Exclusions Rodeos

25 Typical Special Events Exclusions Trampolines and rebounding equipment (including inflatable devices)

26 Typical Special Events Exclusions Traveling Carnivals, Circuses

27 Typical Special Events Exclusions Temporary mechanical amusement devices

28 What is typically not excluded? Events Sponsored by the Member (?) Activities NOT Excluded Food Sales Seminars Receptions Business meetings Activities NOT Excluded (cont.) Exhibitions Picnics/ Banquets Climbing Walls Animal Petting Bicycle Races Sporting events

29 (6) Certificates of Insurance, Hold Harmless Agreements, Additional Insured Status, Indemnification Agreements

30 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 of 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.

31 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

32 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 handicap accessible.

33 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.

34 Traffic Control & Parking Larger functions may require off site parking - Arrange for shuttle of patrons - Special parking instructions for event participants vs. attendees Training for parking attendants in collection of fees or traffic flow, maintaining access routes for emergency vehicles.

35 Crowd Management Different approaches depending on the size of the event arts & crafts festival vs. rock concert. Temporary seating should be installed by a professional. Well placed signs identifying key areas - first aid / restrooms/ exits Trash control

36 Event security Security Personnel needed Training required Maps of facility or event area Communication procedures Transportation Handling of adverse behavior of crowds or individuals Information booth Work With Local Law Enforcement Agencies (?)

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38 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

39 Important to success of events Volunteers Can create their own liability exposures May require additional training to conduct their tasks in a safe manner Money handling Event instructions and accurate information Traffic control and parking Volunteers who will be operating vehicles owned or leased should have their MVR checked

40 Volunteers Should be screened, trained, and adequately supervised. Should be added to the entity s liability policy as additional insureds so the policy will respond in the event of a liability claim arises out of volunteer activity.

41 Volunteers Volunteers are not covered under the state workers compensation act except under specific circumstances auxiliary police officers, constables, volunteer firemen, etc. Purchasing an accidental medical insurance reimbursement policy should be considered.

42 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.