Special Event Insurance PolicyMEMORANDUM
May 1, 2002
TO:
FROM:
SUBJECT:
The Honorable Mayor and City Council Members
Michael C. Van Milligen, City Manager
Special Event Insurance Policy
In 2001 changes were made to City Policy that required organizations to obtain
insurance for special events. This included parades and festivals on public property.
This has inadvertently created a hardship for certain events, and a committee has
reviewed the concept of a tiered-system of insurance requirements.
Low risk events would not require insurance from the sponsoring group. The City is
currently insured for these activities and no supplemental insurance is deemed
necessary. Consistent with A.P. 3.26, the City Manager has the authority to modify
insurance and indemnity requirements.
In addition, for event sponsored by a not-for-profit organization where insurance is
required, the City would provide $3,500 annually to Dubuque Main Street Ltd. so they
could consider grant applications to help fund the insurance requirements.
I respectfully request Mayor and City Council approval of these policy changes.
Michael C. Van Milligen
MCVM/jh
Attachment
cc: Barry Lindahl, Corporation Counsel
Cindy Steinhauser, Assistant City Manager
-,vt
MEMORANDUM
April 22, 2002
TO:
FROM:
Michael Van Milligen, City Manager
Cindy Steinhauser, Assistant City Manager
SUBJECT: Special Event insurance policy
Discussion
In August 2001, Administrative Policy 3.26 Standard Insurance Requirement for City
Contracts, Leases and Agreements was revised to establish new insurance
requirements for all City contracts, leases and other formal agreements. This policy
was updated after a review committee consisting of Barry Lindahl, Pauline Joyce and
Ken TeKippe met with the City's insurance advisors Frank O'Connor and Dick
Friedman. The impact of the change in AP 3.26 also affected the Special Events
Agreement and Application. The Special Events Agreement and Application is an
application process used by citizen groups to request a special event, such as a parade
or festival, on public right of way. Previously the City simply required a signed
indemnity agreement but no proof of insurance and therefore ineffective risk
management. This application was developed by a steering committee consisting of
representation from the Police, Health, Parking, Engineering, City Clerk and Legal
departments of the City of Dubuque. Also participating on this committee was Dan
LoBianco representing Dubuque Main Street and festival interests. After a lengthy
process of evaluating existing festivals and researching application forms in other Iowa
communities, the committee developed the Special Events Agreement and Application
packet with insurance requirements. This packet was approved by City Council in
October 2001.
Recently two citizen organizations requested Special Events Applications to host
parade (St. Patrick's Day and Memorial Day) and were notified of the new insurance
requirements. In researching this requirement with their respective insurance agent the
result was a cost of approximately $500 for parade insurance. In the past, neither
organization had acquired insurance for their parade and so this was a large, additional
expense for their event.
On April 19, Ken TeKippe, Barry Lindahl, Sue Winter, Dan LoBianco and I met with
Frank O'Connor, one of the City's local insurance advisors. The purpose of our meeting
was to discuss the revised insurance requirements and their impact of all types of
special events held on public property, including, festivals, parades, walk-a-thons, vigils
or memorial services, neighborhood events, rallys, retail events, fireworks, etc. and to
develop a tiered-system of insurance requirements. According to AP 3.26, the City
Manager has the authority to modify the insurance and indemnity requirements and we
wanted to develop a list of criteria for use in deciding whether to deviate from the new
requirements. Attached is correspondence from Frank O'Connor regarding this matter
and the important distinct between events where we should require insurance versus
events that could be excluded, in summary events requiring insurance and an
indemnity are as follows:
A. All indoor events should provide certificates (i.e. Five Flags)
B. Outdoor events where income is derived by anyone, where food or drink is
sold or given away, events involving animals or any event of "high risk"
exposure such as fireworks, wall climbs, dunk tanks, unlicensed vehicles etc.
This would be extended to include parades based upon requiring a street
closing and the number of moving vehicles in and out of crowds.
Low risk events, such as a rally or march, memorial services, weddings and
neighborhood picnics, for example, would not require insurance from the sponsoring
party(ies). Some of the events, however, would still be required to fill out the Special
Event Application form and sign the indemnity form. As indicated in the attachment from
Frank O'Connor, the ICAP liability coverage document provides protection to the City
and a "concessionaire". The definition of concessionaire is broadened to include any
concessionaire, other than a fireworks exhibitor, authorized by the City. The coverage
would be for "liability arising out of operations performed on City premises during events
sanctioned or sponsored by the City provided such operations are performed in
accordance with the City's written guidelines" (i.e. the special event application form).
Based upon this information, the City could take several approaches to address
insurance coverage and indemnity requirements for events:
1)
For events such as parades, memorial services, etc. on public right of way, no
additional insurance will be required by the organizer. Those events which
represent a Iow risk of personal injury or damage to City property, the City
Manager shall have the authority to waive the indemnity requirement. If,
however, these events need a permit, they shall be required to complete the
Special Event Application and Agreement.
2)
For events that 1) involve alcohol or fireworks, 2) the public pays a user fee,
or 3) where there is a commercial use (i.e. the sale of products including food
and beverages) the organization sponsoring the event shall procure an
insurance policy that meets the language outline in AP 3.26 and listed in the
Special Event Application and Agreement and sign the indemnity form.
3)
in addition, for events sponsored by a not-for-profit organization and where
insurance is required, the City could develop an "insurance grant" through
Dubuque Main Street Ltd. (DMSL). Basically the City could increase the
purchase of service agreement to DMSL by $3,500, to help subsidize
insurance costs for special events. DMSL would take applications from
organizations hosting a parade along the normal parade route. Attached is a
proposal from Dan LoBianco, Executive Director of DMSL, outlining the
criteria they will use in evaluating the grant request. As grant requests are
approved, reimbursement would be coordinated with the Special Events
Application that the organization is required to submit to the City.
Recommendation
I would recommend that we modify the Special Events Application and Agreement to
require insurance for events involving alcohol or fireworks, user fees or where there is a
commercial use, I further recommend that the City Council amend the purchase of
service agreement with Dubuque Main Street Ltd. for the purposes of establishing an
event insurance grant,
Cc: Barry Lindahl, Corporation Counsel
Ken TeKippe, Finance Director
Pauline Joyce, Administrative Services Manager
Sue Winter, Permit Clerk
Dan LoBian¢o, Dubuque Main Street Ltd.
Page 1 of 1
Cindy Steinhauser
From:
To:
Sent:
Subject:
"Frank O'connor" <foconnor@oconnor-insurance.com>
'"Cindy Steinhaus"' <csteinha@cityofdubuque.org>; "'Barry Lindah?" <balesq@mwci.net>; '"Ken
TeKippe'" <ktekippe@cityofdubuque,org>
Monday, April 22, 2002 5:15 PM
Certificates of insurance--Special Events
During the past weekend I wrestled with our meeting of last week concerning
"insurance requirements" for Special Events. I've concluded that not every
Special Event needs evidence of insurance from the organizer/sponsor.
Distinctions need to be identified among events. Sponsors of all indoor
events (Five Flags etc) should provide certificates. Some outdoor events
need to provide certificates of insurance and others could be excluded.
1. The ICAP liability coverage document provides protection to the City
and a "concessionaire". In the definition of"Who Receives Benefits", the
definition of member is broadened to included "any concessionaire, other
than a fireworks exhibitor, authorized by you (the City), but only with
respect to liability arising out of operations performed on your premises
during events sanctioned or sponsored by you, and provided such operations
are performed in accordance with your written guidelines."
If the City issues a permit, they then have sanctioned the event. If the
event is held on City premises, I believe the City would be brought into
each claim for bodily injury or property damage and the City would
ultimately face exposure for damages if no other party is identified as a
defendant. This definition means ICAP provides coverage for the City and the
concessionaire.
2. However, does the City want to use its' policy exclusively to provide
coverage for concessionaires when the concessionaire is deriving income? I
believe the requirement for insurance could be limited (without inordinate
exposure to the City) to events where income is derived by anyone, where
food or drink product is sold or given away by a vendor, or any event
involving animals (and other creatures) and any event of "high risk"
exposure (fireworks, wall climbs, dunk tanks, unlicensed vehicles etc.).
3. I'm not familiar with all the various events, but I'm trying to find a
way for the City not to require insurance for citizen use of the parks and
streets. The distinction above opens the door for park usage, parades,
prayer vigils, neighbor picnics, golf, tennis and swimming outings etc.
4. Just for clarification, ICAP does not mandate to the City any policy
regarding the above. As your liability risk manager I believe the above
operates to protect spectators/attendees and the ultimate coverage cost to
the City of Dubuque without unnecessary exposure.
4/29/02