Are Outdoor Dining Spaces Covered by Insurance?
When cities across California began permitting outdoor dining during the COVID-19 pandemic, restaurants and bars transformed sidewalks, parking lanes, and public areas into welcoming parklets. Many owners invested heavily in furniture, heaters, and structures—sometimes tens of thousands of dollars. These outdoor spaces have now become a permanent part of the restaurant landscape.
At Wang Insurance, we specialize in small business coverage—especially for restaurants, cafes, and bars. If your business operates outdoors, it’s important to understand how these parklets fit into your insurance protection.
Liability and property coverage for outdoor dining
The good news: most insurance carriers automatically extend coverage to appurtenant structures or outdoor seating areas within a certain distance (usually between 100 and 1,000 feet) from your insured location.
However, coverage specifics vary by carrier. Some insurers impose distance limitations, require protective barriers or reflective tape for safety, or classify certain parklets as “off-premises.” In those cases, your broker may need to request a special endorsement or written confirmation from underwriting to ensure the outdoor space is covered.
Updating your business personal property (BPP) coverage
Even if liability coverage extends to your outdoor space, you’ll also want to review your Business Personal Property (BPP) limits.
BPP represents the replacement value of property used in your operations—think furniture, décor, heaters, and fixtures.
If you’ve recently built or upgraded a parklet, increased outdoor seating, or added heating or lighting equipment, update your BPP amount to reflect those investments. Doing so ensures that if a covered loss occurs (such as fire, vandalism, or vehicle impact), your insurer can reimburse the full replacement value—not just what’s inside your restaurant walls.
Protect your investment
Outdoor dining structures may have begun as a temporary solution, but for many businesses, they’re now essential. Don’t leave your investment underinsured.
Our team at Wang Insurance can review your existing policy, confirm how your carrier treats parklets, and help you adjust your coverage if needed.
Contact us to make sure your outdoor dining spaces—and your peace of mind—are fully protected.
