It’s July Fourth. For many Americans, it’s a day to take time off to enjoy with friends and family, maybe watch a parade and, as the day settles into night, take in some fireworks.

Yep, for many of us, the holiday isn’t complete without fireworks. And if you’re in the niche market of fireworks and pyrotechnics insurance, that’s a good thing.

July Fourth is noted as being the busiest firework time of the year (with New Year’s Eve coming second). And the fireworks industry is growing. According to the American Pyrotechnics Association, consumption of fireworks in the United States has risen from 29 million pounds in 1976 to more 268.4 million pounds in 2016. The association notes there are only three states that maintain a total prohibition on all consumer fireworks.

“States have been allowing more and bigger fireworks so that they don't have to worry about their citizens making their Fourth of July purchases elsewhere,” reported the Pew Charitable Trusts a few years ago.

As Pew notes, the increased revenue is expected to come from things such as licensing and safety fees as well as sales tax.

A Niche Industry

While it may require working on the holidays, fireworks and pyrotechnic insurance is a niche that is fairly multi-facted. As MyNewMarkets.com reported, from the manufacturing of fireworks, to the equipment, to the firework companies, wholesalers, retailers and display shows, the insurance needs are numerous.

There are also a considerable number of regulations to be aware of. “It is a very regulated industry with a lot of government entities involved and every single event and every situation is different,” said Tami Town to MyNewMarkets. Town is a specialist in the market for Ryder Rosaker McCue & Huston Insurance Services. As Towne and others note, the industry became considerably more regulated after the terrorist attacks on September 11, 2001, as it falls within regulation of hazardous materials, which became much more restrictive.