While festival goers concentrate on fun, the organizers of the event and operators compete against a complex web with diverse exposures. Music festivals are unique in that they have "virtually every conceivable exposure", said Mike Kelly, media monitoring manager at ProSight Specialty Insurance. They differ from many other live entertainment productions (such as concerts, car races, traditional sports, etc.) in the sense that they have evolved from relatively simple one-to-two-phase outdoor concerts to huge operations with diverse and increasingly complex sets of entertainment.
"Modern festivals have no less than a dozen very extensive venues and a wide range of peripheral entertainment such as carnival rides, parades of special vehicles called" art cars "with pyrotechnic displays while passing through the dense mass & # 39; s festival goers, "said Kelly. "Many festivals have huge art installations and encourage festival visitors to climb dizzying heights, and many are held near lakes, rivers or the ocean, presenting all challenges related to flood risk." Serious weather is a major concern for festivals where it may be necessary to set appropriate response procedures for high winds, hail and lightning, and many have campgrounds that create a circumstance in which the safety of the patron falls 24 hours a day under the responsibility of the supervisor. "
Modern music festivals can attract more than 100,000 visitors a day. That's why they have virtually every exposure you could find in a city with a similar population, according to Kelly. This may include medical problems, seizures, exposure to extreme heat or cold and drug abuse. Such meetings with large numbers of people have also become targets for mass violence and terrorism, but these catastrophe events are not very common, although they are widely known if they occur. On the contrary, the common trend loss trends at music festivals are consistent with those experienced in the general population.
According to Kelly, the most common losses of music festivals are insect bites, minor cuts and abrasions caused by slipping and falling, twisted ankles, food-related illnesses, alcohol-related illnesses and injuries from curses. It is also common to have crew claims in connection with their use of mechanical equipment or golf carts.
"The news media often deduce that music festivals are the cause of a disproportionate frequency of drug-related illnesses and deaths, but research has shown that the frequency of drug-related incidents does not differ significantly at many of the major festivals, and in many cases is lower than that experienced. in the general population, "Kelly told Insurance Business. "Major festival producers have implemented policies and procedures where it is no longer easy to bring such illegal substances to the festival: the use of drugs sniffing dogs, the police of simple clothing and a robust medical presence on the ground, the number of drug-related diseases and deaths significantly reduced. "
Festival promoters can minimize their exposure to negligence related to drug or alcohol-related incidents by transferring their risk to well-insured external suppliers and by implementing best practices and procedures, such as extensive ex-ante inspections, to ensure the safety of festival goers.
"The main promoters prohibit customers from bringing alcohol to their festivals," Kelly added. "They use licensed, assured professional alcohol vendors with staff trained and certified in alcohol awareness and professional security personnel to monitor IDs to prevent minor alcohol use, as is the case with bars and taverns, people are still stunned, however, the high level of security at major festivals has a very positive effect on controlling this exposure, and the use of adequately insured external alcohol vendors can significantly reduce the exposure of the promoter. "
Experience is essential when it comes to insurance brokers who transfer risks for customers of music festivals, according to Kelly. He suggests that brokers employ a certified safety worker with specific experience in the sector, so that they can distinguish the difference between those who implement risk management-related policies and procedures that comply with industry standards and best practices of those who do not.
"It is therefore absolutely essential to have the experience in the music festival industry to allow a clear understanding of which laws, codes and regulations apply to these festivals in different parts of the country, and more importantly, what Industry leaders do the "best practices" that all others should pursue, "he added." It is important for brokers and promoters to understand these standards and OSHA requirements and applicable learn laws. "