For many Americans, the Fourth of July is a day to take time off with friends and family, maybe watch a parade, and, as the day settles into night, take in some fireworks.
But, for many of us, the holiday isn’t complete without fireworks. If you’re in the niche market of fireworks and pyrotechnics insurance, that’s a good thing.
Independence Day is noted as being the busiest firework time of the year (with New Year’s Eve coming second), with U.S. consumption on an upward trajectory this century, according to the American Pyrotechnics Association—from 152.2 million pounds in 2000 to more than 322.7 million pounds in 2024. As it did in countless sectors, the COVID-19 pandemic impacted the industry: consumer fireworks consumption increased from 248.9 million pounds in 2019 to 385.8 million pounds in 2020 as many public displays were canceled, with public display consumption dipping from 24.1 million pounds in 2019 to 18.7 million pounds the next year (and then further to 12.5 million pounds in 2021). In recent years, figures have leveled out, with both consumer and public display consumption figures returning to pre-COVID levels.
Only Massachusetts maintains a total prohibition on all consumer fireworks. Delaware and New Jersey maintained bans until 2018. Seventeen states—Arizona, California, Colorado, Connecticut, Delaware, Idaho, Illinois, Maryland, Minnesota, New Jersey, New York, North Carolina, Oregon, Rhode Island, Vermont, Virginia, and Wisconsin—permit only non-aerial and non-explosive consumer fireworks.
Fireworks and pyrotechnic insurance is a multifaceted niche. As Professional Program Insurance Brokerage states, fireworks retailers, wholesalers, importers, exporters, and display manufacturers all need coverage. “Even the most experienced and cautious pyrotechnician is vulnerable to litigation, and often coverages are required,” according to the broker.
There are a considerable number of laws and regulations to be aware of at the federal, state, and local levels. Coverage applies only to legal fireworks, and wrongful acts are not included in coverage, Tower Hill Insurance notes. Policies also exclude expected or intended injuries or damages. Pieters & Pieters Law Offices states that any incident deemed intentional or due to gross negligence could result in claim denial.
Fireworks were involved in an estimated 9,700 injuries treated in U.S. hospital emergency departments in 2023, with 66% of those occurring from June 16 to July 16, the U.S. Consumer Product Safety Commission reports.
