But the cost of pub insurance is small beer compared to the ruinous cost the business could face in the event of a claim.
So here’s a look at cover for pubs and why a landlord needs them:
- Public liability – Insurers rank public liability claims as the most likely for pubs. The cover safeguards the business against pay-outs and legal costs for anyone visiting the premises who may suffer a serious illness or injury.
The risk of a claim is rated higher for a pub due to the effects of drinking.
- Employer’s liability – Every pub has staff, from cleaners to cooks and bar staff. Every business has a legal requirement to take out cost-effective employer’s liability insurance to cover claims for serious illness or injury.
Many insurers offer a combined employer’s liability and public liability package as a core policy with the option of add-ons. These include:
- Buildings insurance – Only if you own the premises, otherwise the freeholder should deal with this.
- Contents cover – This is generally not for stock or cash, but other business assets, like computers, office equipment, tills, kitchen equipment, furniture and the like.
- Loss of licence – A vital but misunderstood insurance for pubs. Loss of licence does not compensate a landlord for breaking the law, like serving underage drinkers, but is a protection against losing a licence if the licence cannot be renewed due to circumstances outside of the landlord’s control.
- Stock cover – Securing and controlling stock is a crucial job for a landlord – and stock insurance covers what is generally a high-value asset. Fitting an alarm will discourage thieves and probably attract a discount from an insurer.
- Cash cover – Pubs can carry a lot of cash, especially at weekends or after functions. Insurance will cover cash held on the premises and in transit to the bank. Landlords should not forget cover for floats and cash machines in the pub.
Buying pub insurance
Landlords have a number of options. Some comparison sites are set up to offer business quotes, which are OK for small pubs, but a large pub restaurant/hotel will need tailored cover best provided by a specialist insurer or a pub insurance broker.
For great deals on pub and restaurant insurance visit Quoteline Direct