Many municipalities allow the rental of municipal-owned property to residents and groups for special events. The municipality should have a standard events policy in place to determine what type of events will be permitted, if events are allowed to include alcohol consumption, what public property may be used and what insurance requirements should be in place for the event organizer.
When events include alcohol, the municipality should take specific steps to protect itself against liquor liability risks. One way to reduce risks is to require any entity using the municipal property to carry special events coverage such as a GatherGuard policy. GatherGuard replaced the previous Tenant User Liability Insurance Program, known as TULIP. This program is available to SC Municipal Insurance Trust and SC Municipal Insurance and Risk Financing Fund members.
GatherGuard allows the event host to obtain a quote and purchase insurance coverage through its web site with a Venue ID provided by the municipality. $1 million in liability coverage is available for qualifying events. The venue is listed as an additional insured and a copy of the insurance certificate is provided to the municipality and event host. Host liquor coverage is included, and is required when a venue allows alcoholic beverages to be consumed on the premises. This feature includes coverage for both hosted or cash bars.
For any events sponsored by the municipality, an event coordinator or committee should perform pre-event planning to identify potential hazards. Individuals should never be allowed to bring their own alcohol. Municipalities should contract with experienced vendors, such as restaurant or distributor vendors, that already have the necessary permits, licenses, liquor liability insurance and trained servers. Vendors should provide the municipality with a current certificate of insurance showing the municipality as an additional insured. All agreements should have “Hold Harmless and Indemnity” language. The municipality should also consider obtaining a special events insurance policy.
To learn more about the GatherGuard program or special events policies contact underwriting staff at navriskpolicy@masc.sc.