Accidents and injuries at holiday parades and special events may not be common, but they can illustrate how a city-sponsored celebration can go wrong.
A young boy who was a passenger on a float fell off and was fatally struck by a vehicle at a 2018 Labor Day parade in Windsor, Colorado. At the 2019 Memorial Day parade in Scotia, New York, a woman waiting to begin marching in the parade was fatally hit by a vehicle that unexpectedly accelerated.
Risk management is a critical consideration for all forms of city-sponsored special events, including festivals, concerts, sporting events and fireworks displays. Risk coordinators and key municipal staff should form a special events committee and start special events planning far in advance. Key stakeholders such as police, fire and public works should meet to determine the types of special events that occur within the city, identify risks, develop effective controls, and assess the potential impact on the city, residents and local businesses. Also, city officials should consider designating one staff member to serve as a coordinator of all special event activities and oversee the special events committee.
When planning events, cities need to answer several questions to determine how best to protect both residents and city assets. First, what could go wrong at the event? What preventive measures can be taken against these negative outcomes? If something does go wrong, how will the city or town pay for it?
"Drafting a special events policy and having it reviewed by the city attorney is a key way to manage the risk that a special event can create," Heather Ricard, director of the Municipal Association of SC's Risk Management Services, said. "Another good practice is for cities to require applications for third parties wanting to use city property for an event, so that the city can properly manage any liability aspects of the event."
Most liability insurance policies have exclusions that can impact special events, and city officials should be familiar with the exclusions stipulated in their policies.
Activities commonly excluded by liability coverage
- Bungee jumping and similar amusement devices
- Fireworks displays
- Skateboarding
- Parachuting and hang gliding
- Airplane, helicopter or ballooning rides and shows
- Archery
- Mechanical amusement devices
- Zoos
- Traveling carnivals and circuses
- Rodeos
- Trampolines and rebounding equipment, commonly known as bounce houses
- Concerts organized and promoted by third parties
Hiring a contract event coordinator or contractor to host a special event may take the burden of planning the event off city staff. However, the municipality should vet and screen the contractor to ensure the contractor has the experience and expertise to oversee the event. The city should obtain a copy of the contractor's insurance policy prior to the event and call to verify coverage with the issuing agent the day prior to the event. Be on the lookout for activities that aren't covered by the city's insurance policy and ensure that the contractor's policy covers activities excluded by the city's insurance. If not, the city could be held liable in the event of a claim. Be careful not to exercise too much control over the event and the contractor, this could result in the event no longer being managed independently.