As spring arrives and patio season gets underway, warmer days are on the horizon, making it the perfect time for hospitality businesses to review their insurance coverage ahead of a busy summer.
Some establishments do not have a traditional 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 necessary insurance coverage.
Restaurants have unique risks and exposures that can differ significantly from one establishment to another. Our underwriters are knowledgeable about the latest trends in hospitality and the liabilities that come with them, we will help brokers to stay on top of their business.
Why Covering Outdoor Seating Areas is Essential
There are multiple risks associated with outdoor restaurant seating, whether it’s a full patio or a few tables and chairs in a designated sidewalk area. We will ensure the patio is fully covered and can include the city as an additional insured, if required.
- Slips and falls
- Decks, signs, fencing, patio furniture, decor
- Theft and vandalism
- 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, hookah lounges, and motel/hotels. We can quote up to $8,500,000 property TIV coverages depending on the town grade, construction, and age of the building. Liquor Liability is available to $5,000,000. Standalone liability is also 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 $2,000,000
- Non owned automobile – excluded if there is in house delivery service
- One application for all classes of the risk quoted
- Full property coverage on broad form available
Extensions of Coverage – include:
- Building Damage by Theft
- Extra Expense
- Temporary Locations or New Acquired Locations (30 Days)
- Stock Spoilage/Consequential Loss
- Peak Season Increase
- Glass and sign coverage
- Building By-Laws
- Debris Removal
- Fire Fighting Expenses
- Growing Plant, Trees, Shrubs or Flowers
- Electronic Data Processing
- Land and Water Pollution Clean Up Expense
- Valuable Papers
- Fine Art
- And Much More
Crime Coverages Includes:
- Employee Dishonesty
- Broad Form Money & Securities
- Credit card forgery
- Legal Expense (claims Made Basis)
We Cover:
- Un-licensed restaurants or takeout restaurants
- Cafés
- Restaurants
- Fine dining
- Pubs / Bars
- Establishments with live entertainment
- Lounges including hookah lounges
- Billiard pool halls
- Hotel and motels
- Event Venues
- Private clubs or legions
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.
