As warmer weather rolls in, restaurants in New York’s Capital Region and Hudson Valley are embracing the perks of outdoor dining. With this added charm comes a crucial consideration for business owners: Does outdoor dining require extra insurance coverage? Here’s what you need to know to protect your business while keeping your guests safe.
Why Outdoor Dining Comes With Extra Risk
Adding tables to a patio, sidewalk, or parking area expands more than your guest capacity; it increases your exposure to potential liabilities. Consider these common risks:
- Weather Hazards: Rain can make surfaces slippery, increasing the chance of slip-and-fall accidents.
- Outdoor Furnishings: Tables, chairs, heaters, and umbrellas can be vulnerable to vandalism, theft, or wind damage.
- Environmental Layout: Features like stairs or uneven pavement may increase the likelihood of guest injury.
- Alcohol Service in Outdoor Areas: If you serve alcohol, extra liability applies to any expanded space.
Additional Insurance You May Need for Outdoor Dining in New York
While your existing restaurant insurance may cover your general operations, additional coverage or modifications are often needed for outdoor dining. For example, the New York State Liquor Authority has their own regulations to serve alcohol in outdoor dining areas. Here are some options to consider:
Umbrella Insurance Policy- An Umbrella policy provides extended liability protection beyond the limits of your standard coverage. This can be critical if a guest is injured in your outdoor space and medical or legal costs exceed your general liability limits.
Liquor Liability Insurance- If alcohol is being served in the outdoor area, most municipalities require proof of liquor legal liability insurance, typically in the amount of $1 million per occurrence.
Workers’ Compensation- Double-check to ensure your current policy covers employees in outdoor or various terrains, which could lead to additional risk of injury.
General Liability Insurance- Some local governments require updated certificates of insurance naming them as an additional insured for permits to operate in public spaces. Based on your municipality, you may be required to obtain policies that cover a specific amount and account for public use spaces such as bike lanes.
Beyond Insurance: Loss Control Measures
Insurance is your safety net, but proactive steps can prevent claims altogether. A few common steps restaurant owners can take to account for loss control include making steps or elevation changes clearly visible with signage or tape, securing tables, tents, and umbrellas to prevent wind-related accidents, installing slip-resistant flooring where moisture can collect, and using lighting to illuminate walkways for evening service.
Need Help Reviewing Your Restaurant Insurance Coverage?
MetzWood has been helping our community stay covered and confident for over 110 years. A quick consultation with our team can ensure you're protected from unexpected risks, so you can focus on providing a great dining experience.
Contact us today to review your policy or request a quote.