Focus On: Parades

Memorial Day, July 4, centennial events and other celebrations—parades bring communities together. While parades are entertainment for spectators, they also present a unique set of risks that public risk managers must address to reduce exposure and prevent losses.

Munich Reinsurance America, Inc. Parade loss exposures are typically examples of parade accidents that 555 College Road East confined to four categories: crowd have resulted in serious injuries and P.O. Box 5241 control, motor vehicle use, floats and in some cases, fatalities: Princeton, NJ 08543-5241 participant activities. The more Tel.: (609) 243.4200 Fax: (609) 243.4257 common parade hazards include −−Virginia, December 2013: www.munichreamerica.com participants falling off floats, A float caught fire during the performers being hit by vehicles and annual holiday parade. The fire, Printed April 2014 children being seriously injured while caused by flames from the

This material was prepared based on industry running toward floats or vehicles to generator, ignited the hay on the sources for informational use only, and is not retrieve candy or toys. It should come farm themed display, destroying permitted to be further distributed without the as no surprise to learn that these risks the float. express written permission of Munich Reinsurance America, Inc. No representation or are perhaps the easiest to prevent, yet warranty of any kind, whether express or implied, often times are overlooked in the −−Maryland, July 4, 2013: is provided with respect to the accuracy, parade planning process. A seven-year-old boy died after he completeness, or applicability of this material to any recipient’s circumstances. This material is was struck by a trailer being towed not intended to be legal, underwriting, financial A 2012 National Transportation Safety by a van. The boy fell from a float or any other type of professional advice. Munich Board (NTSB) report reviewed parade as the van and trailer were lining Reinsurance America, Inc. and its affiliates disclaim any and all liability whatsoever resulting policies from a sample of nine up to join the parade. from use of or reliance upon this material. universities and municipalities and Sources available upon request. noted there was a lack of consistent −−Maine, July 4, 2013:

© Copyright 2014 parade operating rules and A fire truck in the parade hit a man Munich Reinsurance America, Inc. procedures. Of the nine policies driving an antique farm tractor. All rights reserved. reviewed, only one (the city of Dallas) The driver of the tractor fell off

“Munich Re” and the Munich Re logo are required event organizers to submit a upon impact and was crushed internationally protected registered trademarks. route plan for approval. Most policies beneath the oncoming truck. All other marks are the property of their did not address driver communication, respective owners. walking support and speed limits. −−Texas, November 15, 2012: Only two cities and schools prohibited A freight train slammed into a objects being thrown from floats. parade float carrying veterans, killing four people and injuring 17 Due to the lack of parade operating others. An investigation revealed standards, inadequate safety that the parade committee did not measures and/or contingency have a written safety plan detailing planning, parade organizers how the parade should be inadvertently increase the potential for organized and executed, nor was adverse actions from seemingly the railroad company informed of random events. Here are a few recent the parade schedule or route. −−Iowa, July 4, 2010: indemnification. Therefore the – Ensures that volunteers and One person was killed and 23 municipality should require the assistants located throughout the people were injured when horses contractor or lessee to provide a route are easily identifiable (i.e. participating in the parade broke certificate of insurance that provides marked vests). loose and charged down the street evidence of adequate coverage and – Monitors weather conditions and for six blocks, trampling parade name the municipality as an plans accordingly. For heat watchers. “additional insured.” The conditions provide cool shaded municipality also needs to verify that areas and increase access to water Additional key exposures include fire the limits in the contract/policy are supplies. In cases of extreme heat (flammable items used by adequate for the exposures inherent or cold consider rescheduling the participants or on floats), the impact in the event. event to protect participants as of severe weather conditions on well as spectators. performers and crowd control. According to the NTSB, at a – Establishes a “if you see something, Crowd control is an issue requiring minimum, a municipality’s parade say something” campaign into the special attention. One look no further policy should address: parade plan. Creates signs, posters than the nightly news reports to see – risk mitigation and handouts emphasizing the spectators committing violent acts – contingency planning need for participants and in large crowded areas. For example, – safety briefings spectators to report anything an act of parade violence took place – driver and vehicle screening suspicious or a suspicious activity in Louisiana in May 2013, when – float safety to event security or police. multiple gunmen opened fire during – notification of railroads or other a Mother’s Day parade, injuring 19 entities (police, fire, emergency Parade route people. Consider also that the services) about potential hazards. – A documented dedicated route for presence of large crowds allows the parade is critical. The route suspects to blend in easily, commit a Developing your plan should not include regular vehicle violent act and then go unnoticed, In reviewing best practices from traffic or parked vehicles. thus facilitating their escape. universities, municipalities and other – Streets should be adequately organizations that host parades, the barricaded along the parade route. Loss mitigation following are critical elements to – The parade coordinator should consider when developing written walk the route months prior to the Loss mitigation for parades requires guidelines for parade activities event and indentify any areas that at a minimum careful pre-planning, within your municipality: need repair: i.e. cracks in stringent event coordination and, in sidewalks, potholes, and uneven some circumstances, contractual risk Parade coordinator surfaces. Repairing or marking transfer. – Coordinates and communicates all significant cracks or holes and parade activities with other documenting that repair/marking Municipalities seeking to minimize departments during the planning may prevent slip and fall claims. potential liability, should consider process including: law – Emergency vehicles must have risk transfer as a useful risk enforcement, the fire department, access to the area to respond to management tool. Contractual risk medical providers and emergency any incident along the route. transfer is necessary when parade service providers. – A sufficient number of police activities involve contractors, – Develops a set of criteria for when officers are needed to patrol the vendors, and/or concessionaires. to postpone or cancel an event. barricades and prevent spectators The contract agreement may include – Disseminates all documented from blocking the parade route and an indemnification clause (also parade policy guidelines to all to patrol for any suspicious referred to as a hold harmless clause) parade applicants/participants. activities. stating that the contractor or lessee Documents that each participant will indemnify and hold the public has received and agreed to the entity harmless in case of a loss. guidelines. This provision alone does not ensure – Implements an active contingency a transfer of risk because the plan to address such things as contractor or lessee may not carry crowd control, injuries, accidents appropriate insurance or have the and fire hazards. financial resources to support the Drivers/vehicles – Include safety blocks for all tires on – Provide all float passengers with – All owners and drivers of parade each float. Be sure the blocks are emergency sound devices. related vehicles must sign “hold large enough to hold the float on a – Prohibit any float passengers from harmless” agreements protecting significant incline. riding on the edge of the float. the city/municipality from liability. – All fueling of combustible engines – All vehicles should be driven by a must be completed prior to the Crowd control/participant activities licensed driver who is at least 18 start of the parade. Excess – All parade participants should sign years of age and who has auto flammable liquids (stored gas “hold harmless” agreements to liability insurance. containers) are not permitted on protect the city/municipality from – Require drivers to maintain a any floats or towing vehicles. liability. distance of 50 feet from the – All decorating materials used on – Prohibit parade participants from preceding unit. the floats must be flame resistant. walking near the floats and/or the – Limit the speed of motorized units – All floats should have a fire vehicles. to 10 mph. extinguisher on board. – Any participants riding a bicycle, or – A 180 degree unrestricted view is – Prohibit any use of fire or flames any other wheeled apparatus must required for all drivers. on a float. wear a helmet. – Appropriate driver communication – Prohibit smoking on or near any – Particular attention must be paid to should be maintained at all times float. any animals that are included in the throughout the parade. – Prohibit any candy, toys or other parade. All animals must be listed – All motor vehicles in the parade objects being thrown by on the parade application and they must be inspected by the fire/ participants on any vehicle or float. are required to have updated police department prior to the start vaccinations, be in excellent of the parade. Float passengers medical health and be able to cope – Participants must remain on the with large crowds and other Floats float during the entire parade. animals. – Floats must be structurally sound – All float passengers standing or – Bar fireworks, starter pistols and and safely designed (this includes sitting should be wearing a safety cannons. Moderate the level of emergency exits for all riders and belt or have handholds or other amplified sound effects and music ample ventilation for the removal of support while the float is moving. to avoid startling drivers and/or vehicle power and generator – Ensure that all participants adhere animals that are in the parade. exhaust). to the supervisory standard of one – Prohibit alcohol consumption – Limit the length, height, and width adult for every four children who during the event. of floats to dimensions that are riding on the float. accommodate the route’s street widths, turns, bridge clearances and overhanging branches. – All self-propelled floats must have a properly installed manufacturer’s engine compartment hood. – The hitch used to attach the float to the vehicle should be a factory “receiver” type or a welded pick-up bumper. No “bolt-on” hitches are permissible. A “drop-hitch” must be used for large trucks and should be at least 12’’ from the hitch to the ground. – Floats that are self-propelled must be Department of Transportation (DOT) legal (lights, turn signals) to drive from the build site to the parade line up. Those floats that are not legal should be towed to the parade site. Focus On: Parades –  – – – – –  – – – – of insurance Key of awell components executed certificate the authorized representative isshown.) representative the authorized providedwork andtheexposure loss being to The authorized representative’sThe authorized ofinsurance isNOT signaturevalid unlessaof signature.(Acertificate coverage of holder ofany cancellation changes or certificate Requirement to notice a30-day ofatleast holder’sThe certificate name ofoperations Description thatapply ofcoverageLimits andanyordeductibles restrictions Coverage (usually general liability, liability, automobile andworkers’ depending onthe compensation) andexpiration ofcoverage dates dates Inception Policy number party’sName andaddress oftheoutside insurance agent performing theactivity) party (i.e. outside Name andaddress ofinsured party