Outdoor Seating Coverage

What You Need to Know

Unique outdoor risks include weather-related damage to property, furniture tipping over in wind, customers tripping on uneven surfaces or deck boards, slip-and-falls during rain, burns from patio heaters, and injuries from falling tree branches or debris.

Some policies have special sublimits or exclusions for property kept outside, or may only cover outdoor items if they're brought inside after hours. If your outdoor seating extends onto a public sidewalk, you likely need additional insured status on your policy for the city or property owner, and you may have additional permit requirements.

Why It Matters for Restaurant Owners

Outdoor seating has become increasingly important to restaurant operations, especially after COVID-19 demonstrated the value of outdoor dining spaces, but many restaurant owners don't properly insure their outdoor areas. If you have $50,000 worth of patio furniture, umbrellas, and heaters and a severe storm or vandalism destroys everything, you need your commercial property policy to cover outdoor property with adequate limits.

From a liability perspective, outdoor seating areas often have more hazards than indoor dining – uneven surfaces, weather exposure, proximity to street traffic, lack of climate control, and objects that can blow around in wind. A customer who trips on an uneven patio brick or is injured by a toppling umbrella can sue you just like any other premises liability claim.

Make sure your insurance agent knows about your outdoor seating, accurately describes the setup, and ensures both property and liability coverage extends to these areas – your total property value includes both indoor and outdoor furniture, and your premises liability exposure increases with additional seating areas.