Many cities and towns are gearing up for Memorial Day and Fourth of July celebrations. These types of celebrations are a great way to showcase your city or town. However, if fireworks are involved, liability for the city becomes a possibility.
If fireworks are going to be part of your special event festivities, make sure the vendor your city uses has proper insurance. This includes workers" compensation, auto liability and general liability coverage with limits of coverage equal to or greater than those carried by the municipality.
It is also important for the city to be named as an additional insured on both auto liability and general liability. The certificate of insurance should come directly from the insurance agent or insurance carrier. It would be wise to call the agent/carrier on the last business day before the event to make sure coverage is still in force. The carrier likely will not notify the city if coverage is cancelled between when the certificate was issued and the day of the event.
The most important reason to use an insured vendor is virtually all insurance coverages for municipalities specifically exclude fireworks as an exposure. It would also be unlikely that a municipality could find separate coverage for this exposure as the city is not in control of the business nor the operators.
Beyond the professional fireworks display, cities should also consider the liability associated with their local ordinances regulating the discharge of fireworks.
While state law allows local officials to regulate fireworks within their municipal boundaries, they cannot prohibit their use. Local officials can establish specific areas (a Fireworks Prohibited Zone), as defined by state law, where fireworks cannot be discharged. They can also regulate the time when fireworks may be discharged provided violations are enforced using a civil, rather than criminal, penalty.
Beyond the boundaries of those zones, a city cannot ban fireworks or criminalize their discharge because it is a lawful activity. Consequently, a 2011 South Carolina Attorney General opinion suggests local officials make violations of local fireworks ordinances punishable only with civil penalties, much like the penalties found in smoking prohibitions.
A municipality can limit its liability by checking its local fireworks ordinance to ensure it does not prohibit or criminalize the use of fireworks in conflict with state law.
- In 2011, fireworks caused an estimated 17,800 reported fires, including 1,200 total structure fires, 400 vehicle fires, and 16,300 outside and other fires. These fires resulted in an estimated eight reported civilian deaths, 40 civilian injuries and $32 million in direct property damage.
- In 2012, U.S. hospital emergency rooms treated an estimated 8,700 people for fireworks-related injuries; 55 percent of these injuries were to the extremities and 31 percent were to the head.
- The risk of fireworks injury was highest for young people ages 15-24, followed by children under 10.
- On Independence Day in a typical year, far more U.S. fires are reported than on any other day, and fireworks account for two out of five of those fires, more than any other cause of fires.