An organisation campaigning for reform of the insurance market here has warned that up to 200 festivals around the country could be at risk from insurance related issues.
It follows a decision by the Ballina Salmon Festival in Co Mayo to postpone this year's event.
In a statement, the organisers of the 65-year-old festival said they had taken the decision with a heavy heart following an increase in insurance and general costs.
"This decision has not been taken lightly," it said.
"The festival has experienced a difficult period since the end of the 2018 festival."
"This, coupled with increased insurance and general festival costs, have resulted in the decision that the 2019 Festival will not go ahead."
"The Board of Directors understand and share the disappointment that this news brings to North Mayo and the annual visitors to our town for the Ballina Salmon Festival."
It added that with the extra time it now has to develop a plan for next year, it is confident that a new invigorated and fresh festival can be delivered in 2020.
Speaking on RTÉ’s News at One, festival spokesperson Tracey Smith said that in 2017 insurance for the event was just over €6,000 but has risen to €25,000 this year.
Ms Smith said this does not include the provision of a health and safety officer or the training of stewards, making the festival unviable this year.
She said the event has always been run on a not-for-profit basis and does not have the funding to match the recent increases.
While the Ballina event has not been subject to insurance litigation, she said a lot of smaller festivals are bearing the brunt from a general increase in claims across the festival sector.
"Unfortunately due to a lot of litigation in bigger events we would take the brunt of it here," she said.
"We’ve never had any claims, we’ve always done things that we should."
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According to the Alliance for Insurance Reform, many more similar festivals could also be at risk as a result of increased costs and a new regulatory and insurance development.
The issue relates to concerns that the Civil Defence's emergency medical operations may not have a new licence in place from the independent statutory agency, the Pre-Hospital Emergency Care Council (PHECC), when the current one expires at the end of July.
The Civil Defence provides emergency medical and first aid support to many events around the country.
The Association of Irish Festivals and Events (AOIFE) said that if the Civil Defence is not able to provide such a service, then festival organisers will have to pay for professional cover in order to get insurance.
"Many cannot afford to do so and if they can't get insurance, the event won't go ahead under current regulations," said Colm Croffy, Executive Director of AOIFE .
Speaking on Today with Sean O'Rourke, he said a four-person triage crew and ambulance could cost up to €5,000 a day.
The association has called on the government to resolve the problem as soon as possible.
The PHECC said it is currently awaiting a completed application form from the Civil Defence seeking a new licence.
It said it would be happy to work with the Civil Defence on the matter, but cannot act until it receives the application.
The PHECC is an independent statutory agency responsible for independently specifying, reviewing, maintaining and monitoring standards in the provision of quality pre-hospital emergency care.
