With spring arriving, patios are opening. Pleasant weather is ahead, so inquire about insurance coverage at restaurants, hotels, and pubs during summer.
Some traditional restaurants and bars do not have a patio but are now adding tables and chairs to designated areas so their customers have more dining options during the summer. In some cities like Toronto, restaurant owners are required to have a license for these patios. A patio license also implies the need for all necessary insurance coverage.
Restaurants come with unique risks, and some ventures are riskier than others. Using underwriters who are knowledgeable about the latest trends in hospitality and the liabilities that come with them will help brokers to stay on top of their business.
Why Covering Outdoor Seating Areas is Essential
There are multiple risks that can be associated with outdoor restaurant seating, whether it’s a full patio or a few tables and chairs in a designated sidewalk area.
- Slips and falls (caused by water or ice) by customers and employees
- Decks, signs, fencing, patio furniture, decor
- Theft and vandalism (crimes)
- Consumption of alcohol, bar-hopping, and damage caused by patrons
- Storm damage (flooding, high winds, sewer backups, etc.)
Sometimes the gaps in coverage are not noticed until there is a loss, then it turns into a dispute between the broker and client, as well as the underwriter. The key is educating everyone, so they understand the risks involved. Your insurance coverage is the vehicle to do that.
Other Exposures to Consider
A festive venue can be transformed by excessive alcohol consumption into an environment that is conducive to property damage, and personal injury. A business owner must also consider other liabilities besides alcohol distribution. Among the main risks are:
- Altercations at the venue, slips and falls down stairs, and even injuries on the dance floor can be held against commercial hosts.
- A bartender’s duty is to ensure his or her patrons return home safely from a licensed establishment. Commercial hosts may be held responsible for vehicle accidents caused by intoxicated patrons.
- If a bar, pub, or tavern is alleged to have caused or contributed to an accident resulting in an injury, they can be held liable for overserving alcohol.
- The busier the season gets, the more things can go wrong — whether it’s fires, power outages, or equipment breakdown, or customers getting sick, burned, or having allergic reactions to the food they’re served.
SWG HOST
SWG HOST Hospitality Services Insurance is a leading program designed to accommodate most classes of hospitality risks including restaurants, fine dining, pubs, bars, venues with live entertainment, billiard pool halls, and motel/hotels not exceeding 35 room rentals. We can quote up to $5,000,000 property TIV coverages depending on the town grade, construction, and age of the building. Liquor Liability is acceptable up to $5,000,000. Standalone liability is available.
Coverage highlights
Full Commercial General Liability with liquor liability:
- Most classes of Hospitality risks
- Bodily injury and property damage
- Tenant’s legal liability up to $500K in-house, higher limits require market referral
- Non owned automobile – excluded if there is delivery service
- One application for all classes of the risk quoted.
Full property coverage on broad form available
Extensions of Coverage – include:
- Personal Property of Officers and Employees
- Any one officer/employee
- Any one occurrence
- Growing Plant, Trees, Shrubs or Flowers in the Open
- Accounts Receivable
- Stock Spoilage/Consequential Loss
- Building By-Laws
- Inflation Protection
- Exhibition Coverage
- Automatic Fire Suppression System Recharge Expense
- Brands and Labels
- Fire Fighting Expenses
- Temporary Locations
- New Acquired Locations (30 Days)
- Building
- Equipment and Stock (Contents)
- Debris Removal
- Peak Season Increase
- Land and Water Pollution Clean Up Expense
- Building Damage by Theft
- Extra Expense
- Valuable Papers
- Electronic Data Processing
- Equipment and Media
- Fine Art
- Professional Fees
- Glass
- Signs
Crime Coverages Includes:
- Employee Dishonesty
- Broad Form Money & Securities
- Credit card forgery
- Legal Expense (claims Made Basis)
We Cover:
- Restaurants
- Fine dining
- Bars
- Hospitality establishments with live bands
- Hospitality establishments with patios
- Pubs
- Taverns
- Lounge
- Cafés
- Un-licensed restaurants
- Billiard pool halls
- Hotel and motel (not exceeding 35 room)
- Venues with live entertainment
For more information, visit our product page.
* Insurance coverage availability may differ between provinces.
* Content is current as of the date of broadcast and is subject to change without notice.
