Loss Prevention: March Heads - Up
To: General Managers
Directors of Operations
Safety Committee Chairpersons
SMG – Loss Prevention Committee
From: Sherry Ardito
Loss Prevention Analyst
Re: SMG March Loss Prevention – Heads Up
Date: March 7, 2003
This month, SMG is focusing its Loss Prevention efforts on important fire protection issues such as:
Due to the increased level of public attention regarding fireworks displays we will be scheduling regional conference calls with our General Managers to fully discuss the SMG qualifying circumstances for
pyrotechnic displays and fireworks at SMG managed venues worldwide.
When staging pyrotechnic displays, it is an SMG contract administration procedure to obtain a certificate of insurance verifying that the promoters, performers, SMG and our clients/owners are insured under a general liability policy purchased by the pyrotechnic contractor. In keeping with the standard SMG contractor guidelines, a one million dollar policy limit is required. Due to the unique risks these displays generate, and due to the difficulty that many pyrotechnic contractors incur in obtaining adequate insurance, we are requiring verification by SMG Risk Management of the adequacy of coverage for fireworks incidents prior to allowing the contractor to proceed with the display.
The certificates from pyrotechnic contractors should show SMG and our municipal partner(s) as additional
insured, and should be faxed to (215) 592-6607. This requirement must be enforced regardless of who hired the pyrotechnic contractor, and should be extended to include resident tenant organizations who may be conducting their own pyrotechnic displays in the facility. Included with the certificate of insurance should be a completed SMG Event Insurance Questionnaire, to be completed for all events. A copy of this form is included with this memo. Additionally, in order to assist in controlling the unique hazards presented by pyrotechnics displays, we suggest the following additional guidelines:
; The pyrotechnic contractor should obtain a permit from the local fire marshal and present this
permit to the SMG Director of Operations or designee.
; The local fire department should be requested to provide supervision of the contractor during the
set-up and activation of the display, as well as the dismantling and removal of any inert charges. ; Prior to the event, the pyrotechnic contractor should be required to review the activities with the
SMG Director of Operations or designee, including nature and requirements of the display as well as
storage and security measures to be implemented upon arrival at the facility.
This issue was most recently addressed with the inclusion of a document titled “Guidelines for the Use and Storage of Fireworks and Pyrotechnic Material” in the Risk Management Manual. However, there are updated standards from 2001, issued by the National Fire Protection Association (NFPA). Copyright restrictions do not allow us to distribute the standards, but you may download one copy of The
(NFPA 1126) for yourself on Standard for the Use of Pyrotechnics before a Proximate Audience
the NFPA website at www.nfpa.org.
Please take a moment to go to the website and print out these standards, as it is important for venue managers to have the latest information on the topic.
Every SMG managed facility must conduct a fire drill during 2003. This fire drill should be documented on the appropriate form, with a copy sent to the risk management. These drills should be witnessed and critiqued by the local fire marshal, where appropriate.
Testing of automatic sprinkler system. The automatic sprinkler system in the facility should be tested
quarterly to insure it is working properly. These tests should be documented, and anything that is not in working order should be noted as an open issue, and then repaired as soon as possible. The closing of these items, once repaired should be documented as well, with back up information kept on file.
Sprinkler system/Fire detection system impairments. It is vitally important to the protection of life
and property at all venues that we contact our local client/owner and determine the insurance company, if any, providing coverage on the building. The insurance company should be able to provide guidelines as to when you are required to call and report that a fire detection and/or suppression system will be down for maintenance. When this call is made, it is likely that the insurance company will require explanation of the property and life protection procedures that will be in place during the impairment. Similarly, they will likely ask that once all equipment has been returned to normal operations, that you notify them of this change in status
Contractor Control. Page three of this heads up includes an event insurance checklist. This checklist should be employed for every event, and faxed to the Director of Risk Management for your facility if you answer yes to any of the questions posed. The checklist is used to evaluate the need for additional insurance or safety considerations at events with elevated risks.
I look forward to being a resource on safety matters for you in the future. If you would like to discuss
anything, or have any issues you need help with in the way of loss prevention, I look forward to speaking with
you. You may reach me at (215) 592-6651, or via e-mail at: email@example.com.
Thanks, and please continue to make safety a priority!
SMG RISK MANAGEMENT EVENT QUESTIONNAIRE
If “YES” to any of the following questions, FAX to SMG Risk Management at 215-592-6607 ____________________________________________________________________________________________________
DOES THE EVENT INCLUDE A CONCERT PERFORMANCE YES
TYPE OF MUSIC ADVERTISED AS “RAP” YES**
DOES THE EVENT INCLUDE A FIREWORKS DISPLAY YES
DOES THE EVENT INCLUDE AUTOMOTIVE VEHICLES IN COMPETITION YES**
DOES THE EVENT INCLUDE LIVE ANIMALS YES
DOES THE EVENT INCLUDE AUDIENCE PARTICIPATION YES
DOES THE EVENT INCLUDE CLIENT USE OF VOLUNTEERS YES
DOES THE EVENT INCLUDE CLIENT REVISED LEASE TERMS YES
DOES THE EVENT INCLUDE ACTIVITIES AWAY FROM VENUE YES
DOES THE CLIENT REQUEST ADDITIONAL INSURED STATUS ON
SMG INSURANCE PROGRAM YES
CLIENT EVIDENCE OF INSURANCE
; $1 MILLION LIMITS _________________ ** $3 M_________________ ; SMG & MUNICIPAL PARTNERS SHOWN AS ADDITIONAL INSURED YES NO
; NAME OF INSURANCE COMPANY________________________________
; NAME OF INSURANCE AGENT/BROKER___________________________
; COPY OF CERTIFICATE OF INSURANCE ENCLOSED YES NO
; HAS CLIENT BEEN ADVISED OF MASTER VENUE PROGRAM AND COST YES NO