COVID-19 UPDATE: Insurance Considerations for Expanding Your Patio June 01,2020

by Sean Pechan, Crest Restaurant Insurance

As you consider expanding your operations into temporary locations (i.e. sidewalks, parking lots, streets, alleys, tented structures, neighboring property…etc.) there are risk management considerations that should be addressed.

  • You should speak to your insurance agent to confirm the location (if it can be designated) is added to your policy.  We recommend even if the premises cannot be designated the insurance company is made aware of your usage and intent.
  • Regarding your property coverage, all policies are location-specific to where property is covered.  Thus any property outside of the primary designated premises would need to be addressed.
  • Outdoor property is often a separate coverage limit that might need to be addressed.
  • Regarding general/liquor liability, some policies contain designated premises restrictions that should be addressed.
  • Regarding workers compensation, there is not a premises coverage concern, however employee safety should be considered in the expanded premises.
  • Regarding customer safety, customers are considered invitees when occupying the expanded premises, thus they are owed the highest level of care and protection by the operator.  Practice risk management to protect invitees as much as possible.  The primary duty of care you are expected is to remove conditions that are known dangers.
  • As with your primary designated premises, be diligent in following COVID-19 recommended procedures to protect against contamination and/or the spread of the virus amongst patrons or employees.
There is inherent risk in our everyday business operations.  We recommend working alongside your current agent to manage your risk in the most appropriate way.  We welcome the opportunity to help any operator regardless if we are their agent.  Please contact either Kirk Bamesberger (303.594.1780) or Sean Pechan (303.246.8852) to discuss any questions or concerns.

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