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Sarah Clements

Claims Made vs Occurrence Policies – What You Need To Know
Claims Made vs Occurrence Policies – What You Need To Know 1000 527 James Hallam

Insurance policies can be written on two bases: Claims made, or claims occurring. It is important to understand the terms of your policy, as this may determine whether you get a payout should you ever need to make a claim.

In this post we will explain the key differences between a claims made and a claims occurrence policy, and examine why this distinction matters.

What is a Claims Made Policy?

An insurance policy will usually specify the policy period, which is typically 12 months. In a claims made policy, the insurer will pay out for any valid claim made during this policy period regardless of when the insured incident occurred.

Claims Made Policy Examples

A professional indemnity insurance policy, for example, may specify a retroactive date, which could be a number of years before the date you originally took out the policy. If it is a claims made policy, then it would cover all of your work as far back as this retroactive date.

A claims made policy may also pay out for a claim made after the policy period expires. However, for this claim to be successful, the policyholder would have to notify the insurer of emerging circumstances during the policy period.

For example, the policyholder may become aware that a client is dissatisfied. This client may not make a claim immediately, but it seems likely that they will in the coming months or years. If the policyholder notifies their insurer of this situation, then the insurer may honour the claim even if it is made after the policy period expires, and even if the policyholder switches insurers.

What is a Claims Occurring Policy?

A claims occurring policy will only pay out for claims for incidents that occurred during the policy period. This can include claims for losses or damages that occurred during the policy period, but which did not emerge until after the period expired.

Claims Occuring Policy Examples

Employer’s liability insurance policies are typically written on a claims occurring basis. This means that employees can make a claim for injuries or illnesses that only become apparent after they leave the job.

For instance, an employee who is exposed to asbestos or other harmful substances may not become aware of any health issues until years later. Plus, employees may develop RSI or other conditions as a result of using certain equipment over a number of years. In both cases, if the employer’s liability insurance policy is written on a claims occurring basis, then these employees would still be able to pursue their former employers for compensation.

What’s the Difference between Claims Made and Claims Occuring Policies?

The key difference is relating to when the incident occurred. Policies written on a basis of claims made will cover claims made within the policy period regardless of when the incident occurred, whereas a claims occurring policy will only cover claims for incidents that occurred during the policy period.

Do You Have a Claims Made or Claims Occuring Policy?

So, is your business insurance written on a claims made or a claims occurring basis? It should now be clear that this could determine whether or not you are able to make a successful claim on your policy, so you should check your policy wording to find out.

If you are taking out a professional indemnity insurance policy to cover an ongoing project, then a claims made policy is most likely to give you the cover you need for as long as you need it. Agree on a valid retroactive date, and notify your insurer of any emerging threats, and your policy should give you full protection even for incidents occurring years before, or years after, the policy period.

Be sure to read our full guide to getting the right level of professional indemnity insurance here.

Understanding Your Policy Terms is Key To Avoiding Underinsurance

If you do not understand the terms of your policy, then you might find that you do not have all the cover you need should you ever make a claim.

James Hallam is an independent Lloyd’s broker with a dedicated team of experienced insurance professionals who care about protecting your business. We can help you understand your cover requirements, before helping you ensure your policy meets all of your needs at the best price.

Learn more about our professional risks insurance services.

 

What is Stock Insurance and How To Choose The Right Level of Cover
What is Stock Insurance and How To Choose The Right Level of Cover 1000 667 James Hallam

Stock insurance is essential cover for retailers and warehouse owners. In this post, we will outline what stock insurance is, and what it covers, before exploring how you can ensure you have all the cover you need while avoiding certain common pitfalls.

What is Stock Insurance?

This is a dedicated insurance policy to cover your stock for loss, theft, or damage. Your policy should cover your stock whether you store it on your own premises, or elsewhere.

Usually, stock insurance will also include some contents cover. For instance, if you lose some stock to theft, then your insurance could also cover any fixtures or fittings that were damaged during the break in.

Most retailers and warehouse owners will take out some level of stock insurance. However, many businesses might not have quite the level of cover they need. And unfortunately, they may only discover that they are underinsured when they choose to make a claim on their policy.

Common Issues With Stock Insurance

Here are some common stock insurance pitfalls:

  • Seasonal variance: You may store more stock at certain times of the year. For example, retailers will usually store significantly more stock during the festive period. The amount of stock onsite may exceed the limits of your policy, which would mean you would not be fully covered in the event of a claim.
  • High risk stock: Some items of stock may be more attractive to thieves. Or it may cost more to repair or replace following a flood or a fire. If your stock insurance does not account for these high risk items, then you may be underinsured.
  • Stock deterioration: Stock insurance will cover your stock for loss, damage, or theft. But it may not cover your stock for deterioration as standard. Say you sell perishable goods, and an electrical fault causes your fridges or freezers to fail. You may have to dispose of a large amount of stock. But unless your stock insurance included cover for deterioration, you would not be covered for this loss.

How To Calculate The Right Level of Stock Insurance For Your Business

  • Consider your seasonal peaks. You will need to extend your cover in line with your busiest periods. If you are a retailer, for example, you will need more cover in the run up to Christmas, and in the weeks preceding and following bank holidays.
  • Consider your risk profile. As we mentioned above, a high risk item could be something that thieves are more likely to target, or something that would cost a lot to repair or replace following an incident. Sometimes, only certain items that you stock will be considered high risk, such as cigarettes and alcohol for retailers. But if you work in certain sectors, such as electronics, then all of your stock may be considered high risk.
  • Consider your cover limits. Your stock insurance should cover the amount it would cost to replace all of your stock. When specifying your cover limit, as well as accounting for seasonal peaks and high value items, you should also include the possible costs of replacing any fixtures, fittings, and equipment that may get stolen or damaged during an incident.
  • Work with a broker. An insurance broker with experience in your sector can help you to identify the right level of cover for you, by working with you to understand more about the risks you face.

We Can Help You Avoid Underinsurance With Your Stock Cover

James Hallam is an independent Lloyd’s broker with a dedicated team of experienced insurance specialists. We can help you avoid underinsurance and get the right level of cover for your stock, at the right price.

We can help you determine an accurate cover limit for your stock, which accounts for seasonal variations and high risk items. And we can help you ensure you have any specialist cover you may need, such as cover for stock deterioration.

Find out how we can help you today.

How To Protect Hotel Businesses From Theft
How To Protect Hotel Businesses From Theft 1000 667 James Hallam

Theft can be a major problem for hotels. Any losses may seem small at first, but the costs can quickly add up.

In this post we will explore the most common types of hotel theft, before discussing how you can protect your hotel business from theft.

The Most Common Types of Hotel Theft

  • Guest theft: Including stealing towels, dressing gowns, toiletries, and electronics from rooms, and taking home glasses and cutlery from the hotel’s bar or restaurant.
  • Housekeeping theft: Like guests, housekeepers may occasionally lift items from hotel rooms, including towels, linens, toiletries, and cleaning supplies.
  • Internal theft: This can include front desk staff engaging in fraudulent behaviour, including skimming cash, misusing credit card systems, or even stealing guests’ valuables while handling their luggage.

What is The Impact of Hotel Theft?

Theft can impact many areas of your hotel, including:

  • Loss of revenue
    You will have to pay to replace every lost item, which can boost your operating costs while cutting into your profits.
  • Reduced efficiency
    At the same time, any missing item can disrupt your housekeeping and guest services, leading to reduced efficiency and increased delays.
  • Low staff morale
    Over time, theft can take its toll on staff morale, too. If things keep going missing, many members of staff will find it increasingly difficult to do their jobs. And if there is evidence of internal theft, it could lead to a culture of tension and distrust.
  • Poor customer experience
    And of course, if any guests are victims of theft while staying at your hotel, it can lead to bad reviews, a poor reputation, and potentially legal action.

How Common is Hotel Theft?

Hotel theft is so common that it is no exaggeration to say that every hotel owner will have experienced it at some point.

According to one survey, 87% of guests admit they have taken something from a hotel at some point, and 26%  admit that they always steal from hotels.

Further hotel crime statistics suggest that hotels lose an estimated £74m a year to guest theft. Also, around 25% of hotel robberies are the result of internal theft, or of hotel employees colluding with criminals.

And on top of all this, just like any other businesses, hotels these days must contend with the risks of cybercrime.

5 Ways to Protect Your Hotel Business From Theft

  1. Get Your Staff On Your Side

Talk to your staff about the impact of theft, about how it makes life harder for everyone. Train your staff to spot the signs of all forms of theft, and aim to create an open culture of trust in which staff feel they can safely raise concerns while depending on your full support.

You could also make it clear that you take a zero tolerance approach to theft. Hopefully, you will never have to act on this. But if your staff are familiar with your policies, then they may be less tempted to lift cash or items.

  1. Ensure Better Oversight of Key Operations

You could introduce routine room checks and post-cleaning inspections to look out for any discrepancies. Make sure everyone sticks to the same housekeeping schedule, so that it will be clear exactly who may have been involved should you ever suspect that theft has taken place.

Try to minimise the number of employees who can access financial systems and guest valuables, and implement rigorous cash-handling policies while ensuring you reconcile all tills every day. You could also conduct periodic audits on all inventory and cash handling systems, which will make it clear to everyone that any discrepancies will be discovered before long.

  1. Encourage Your Guests To Be Honest

There is not a lot you can do to prevent a guest from stealing a towel or a hairdryer from their rooms, and you cannot exactly perform random luggage searches at checkout. But you could try to appeal to your guests’ better natures.

Place signage in your rooms letting guests know that, should they wish to take home towels or dressing gowns etc., then they are for sale at reception. This subtle reminder that these things cost money might deter many guests from packing items in their bags.

  1. Invest in Technology

Ensure you have sufficient CCTV coverage of any areas where serious theft could take place, including any counter with a till, any area where cash is handled, and your storerooms.

You could also invest in a Property Management System (PMS), which can help you track your stock and inventory, along with ongoing tasks such as cleaning, housekeeping, and cash flow.

Also, technology is your hotel’s main line of defence against cybercrime. Read our full guide to protecting your hotel against cybercrime.

  1. Get the Tailored Hotel Insurance You Need

Specialist hotel insurance can cover your hotel against many of the risks you will face, including the growing risks of cybercrime.

James Hallam is an independent Lloyd’s broker with a dedicated team of experienced insurance brokers. No matter if you are running a large or a small hotel, we can tailor a niche insurance package to ensure you are covered for all risks at the best possible price.

Find out how we can help you get a bespoke and cost-effective hotel insurance policy today.

 

How To Reduce Shop Insurance Costs and Minimise Claims
How To Reduce Shop Insurance Costs and Minimise Claims 1000 667 James Hallam

In recent years, the cost of insurance has risen for all UK businesses, including retailers.

In this post we will examine some of the underlying causes of the rise in shop insurance costs. We will also explain how you can help to bring down the cost of your shop insurance.

Why Is Shop Insurance Going Up?

UK shops are dealing with rising insurance costs as a result of claims inflation. This means that it is costing more for insurers to settle all kinds of claims, regardless of how often these claims occur.

What is Causing Claims Inflation?

A number of factors are driving claims inflation:

  • Global supply chains have been hit by major disruptions in recent years, which has increased the cost of many essential materials, including timber, steel, and insulation.
  • Workforce shortages have contributed to rising labour costs. Which drives up construction and repair costs and lead times.

This will increase the average cost of settling an insurance claim, and insurers will pass these increased costs onto their customers in the form of higher premiums.

When it comes to the retail sector in particular, insurers may be worried by a rise in shoplifting and other crimes. Higher crime rates may make it more likely that shops will make claims on their policies, which will further contribute to claims inflation while driving up the cost of cover for everyone.

How To Reduce Shop Insurance Costs

The good news is that, if you can demonstrate to your insurer that you are taking steps to reduce the risks of shoplifting and other sources of loss, then it may lead to lower insurance premiums.

But in short, here are some measures that might help you reduce your shop insurance costs:

  • Install security systems including locks, shutters, safes, alarms, and CCTV.
  • Invest in staff training to help them spot the signs of theft, and to help them stay safe on the job.
  • Maintain a good cleaning schedule, which can reduce the risks of slips, trips, and falls.
  • Stay on top of all ongoing servicing and maintenance procedures for your electrical equipment, security systems, and fire safety systems.
  • Implement an effective stock management system so that you can identify sources of loss as early as possible. Also be sure to store any high value items as safely and securely as possible.

For more, be sure to read our full guide to designing and implementing policies for addressing shoplifting and other theft.

How We Can Help You Reduce Your Shop Insurance Costs

Remember that not all insurers will charge you the same for your cover. It always pays to shop around and compare quotes. And while it is vital that you avoid underinsurance, it is just as important to avoid overinsurance – paying too much for cover you do not really need.

At James Hallam, we can help you find the dedicated shop insurance you need at a competitive price. We will take the time to get to know you and your business, so that we can fully understand all of the risks you are facing. We will then find you an insurance package that meets all of your requirements, including your budget.

We can also advise you on how to effectively evidence your risk management policies and procedures so as to bring down the cost of your cover.

Find out how we can help you today.

What Insurance Do Mobile Hairdressers Need?
What Insurance Do Mobile Hairdressers Need? 1000 667 James Hallam

If you are a mobile hairdresser, then you will need all of the specialist cover that any hairdresser would need, as well as dedicated insurance to cover you for the unique risks associated with visiting customers at their homes.

In this post we will list the key types of insurance for mobile hairdressers. If you have any questions, or if you would like a free quote on your specialist hair insurance, get in touch with us today.

What Insurance Do Mobile Hairdressers Need?

Public Liability Insurance

This is an essential form of cover for mobile hairdressers. This will cover you for any accidents that may take place when you are visiting a customer at their home. This can include anything, from accidentally spilling a product or a cup of coffee, to scorching an item of furniture with some unattended hair straighteners.

In the event of such an incident, your public liability insurance can cover the costs of any necessary repairs or replacements.

Treatment Risk Cover

This can cover you for incidents relating to the services you provide. Many things can go wrong when you are giving a customer a haircut: You might slip and accidentally cut their ear. You might accidentally catch them with your hair straighteners. Or they might have an allergic reaction to a product you use.

In these cases, if the customer decides to make a claim against you, your treatment risk insurance can cover your legal fees, along with any compensation they may be due.

Contents Cover for Your Equipment

This can cover all the equipment you use to do your job, including your hair products. If you are a mobile or a freelance hairdresser, your contents insurance should cover your equipment when you are transporting it from one place to another. It will also cover your equipment when it is in storage, even if you store it in your own home.

Your contents insurance will cover the costs of repairs or replacements if any of your equipment or products are ever lost, stolen, or damaged.

Personal Accident Cover

If you are a mobile hairdresser, then you are very likely working on a freelance basis, which means that you probably cannot rely on statutory sick pay if an accident, injury, or illness ever prevents you from working. Personal accident cover can be included, which provides a lump sum, following accidents that lead to a serious injury, or permanent total disablement. It can also provide a weekly benefit, as a result of accidents leading to temporary disablement. Alternatively, you may wish to consider accident and sickness insurance.

Employer’s Liability Insurance

Finally, if you employ any staff, even if it is just on a part-time basis, and even if they are related to you, then you have a legal duty to get employer’s liability insurance.

This will cover your staff for any accidents or injuries they may sustain while on the job.

How to Choose The Right Cover For Your Mobile Hairdresser Business

If you are not sure how to meet all of your insurance needs as a mobile hairdresser, we are here to help.

Talk to us, and we will take the time to understand you, your business, and the unique risks you are facing. We can then help you access specialist insurance that will meet all of your needs at a truly competitive price.

Find out how we can help you today.

 

Heat Network Regulation Changes and How They Affect Developers
Heat Network Regulation Changes and How They Affect Developers 1000 571 James Hallam

Ofgem, the energy regulator for Great Britain, recently announced some changes to the way they will regulate heat networks.

In this post we will take a look at what these heat network regulation changes entail, and assess how they may affect developers.

What are the New Heat Network Regulation Changes?

The heat network regulation changes include a set of new consumer protection rules. The goal is to ensure that all customers can:

  • Better understand their bills
  • Trust that they are paying a fair price
  • Depend on their heat supply
  • Know who to contact for help, if necessary

These consumer protection rules are already in place for the gas and electric networks. The changes will simply ensure that heat network customers can expect the same level of transparency and reliability.

At the same time, Ofgem anticipates that building a more stable regulatory environment will attract more investors to the sector. In the long-term, they believe this will lead to new services and technologies that will benefit both customers and network operators.

When Will The Heat Network Regulation Changes Come In?

The new regulatory framework will be phased in between early 2026 and 2028, but they are expected to be in full force from 2027.

Ofgem is encouraging heat network operators and suppliers to join the Energy Ombudsman Heat Network Supplier scheme, to help manage any unresolved customer disputes.

From April 2026, all existing operators will need to register on Ofgem’s new digital service, which will enable them to stay up to date on the new regulations while demonstrating compliance.

How Will The Heat Network Regulation Changes Affect Developers?

As these new regulations come into force, developers may have to deal with higher upfront costs and certain delays to the planning process. In the long-term, they will have to commit to more demanding monitoring and reporting responsibilities too.

Higher Upfront Costs, Longer Turnaround Times

Installing a compliant heat network requires a centralised plant room, heat exchanges, elaborate pipework, and smart meters. Any new heat network will have to be smart compatible from the start, as retrofitting can be prohibitively complex and expensive. All of this will lead to higher upfront costs for new developments.

These elaborate systems will also lead to more complex designs and longer lead times. For instance, the construction schedule will have to account for lengthier installation times, along with sufficient time for testing.

Stricter Regulations, Growing Responsibilities

Developers will have to ensure that any heat network they install meets the applicable standards on performance, transparency, and consumer billing. To stay compliant, there will have to be accurate metering systems for every individual unit.

In the long-term, developers may be held responsible for the ongoing monitoring of these systems, and for regular reporting to regulators. This means managing:

  • Customer support
  • Emergency response procedures
  • Accurate billing processes based on actual use
  • Maintenance and servicing schedules

Developers may choose to appoint an operator to oversee these processes. But this will still add some additional long-term responsibilities, along with added costs.

What Are The Fines If You Don’t Meet Heat Network Regulations?

As part of these new heat network regulations, Ofgem will have certain powers to enforce compliance. You could face severe fines and penalties if you do not meet the regulations, or if you do not properly register and maintain your heat networks.

Also, as these new regulations are designed with consumer protection in mind, you may also face legal claims from residents, which may ultimately lead to serious reputational damage.

Developers: Are You Ready For The New Heat Network Regulation Changes?

This is not the sort of thing you can leave until the last minute. To ensure compliance, and to avoid fines, penalties, and legal action, it is vital that you act as soon as possible. You must consider compliant heat networks as early as the concept and design stages, and you must account for higher costs, lengthier installations, and ongoing compliance.

Building partnerships with engineers, heat network operators, and compliance consultants could help you avoid a lot of trouble in the long-term. It’s also important to ensure that you have the right insurance in place for all your development projects and that’s where our specialist real estate team at James Hallam can help.

Find out how we can help you today.

Destination Training For Travel Agents: What Questions To Ask
Destination Training For Travel Agents: What Questions To Ask 1000 667 James Hallam

Destination training allows travel agents to build the knowledge, skills, and insights necessary to offer truly unforgettable travel experiences.

In this post we will outline what you might expect from your destination training, and explore how asking the right questions can help travel agents make the most of this opportunity.

What is Destination Training?

Destination training is a specialist course that can help travel agents understand travel trends, customer preferences, and the risks and opportunities associated with popular destinations.

Destination training may involve attending an in-person course or workshop. On rare occasions, it may involve travelling to a specific tourism destination for on-the-ground learning. But nowadays most destination training providers use online learning modules.

Some travel agents will choose to undertake routine destination training, as it can help them stay ahead of emerging trends.

Destination training is not to be confused with a familiarity trip. A “fam trip” is not a formal training course. It is a dedicated excursion for travel agents to help them promote a new package or property.

The Benefits of Destination Training

Destination training can offer travel agents the opportunity to:

  • Develop expert knowledge of popular destinations
  • Understand emerging travel trends and evolving customer preferences
  • Build relationships with hotels, tour operators, frontline staff, and other providers
  • Learn about the risks associated with popular destinations and transport options

What Questions to Ask During Your Destination Training

These are the questions you should bear in mind during your destination training. If you reach the end of the course and you find these questions are still unanswered, you should look for an opportunity to ask them yourself.

Who Chooses This Destination, and Why?

What makes a popular travel destination so popular? And how are providers in the destination adapting to evolving customer trends?

For instance, if the destination is particularly popular, you might wish to know what, if anything, providers are doing to address overtourism concerns. You might also enquire about what providers are doing to meet the growing preference for more sustainable travel options.

It is also important to understand what sort of traveller chooses each destination. Business travellers, or holidaymakers? Families, solo travellers, or young couples? And if the destination is popular among a certain demographic, what exactly do they find so appealing?

How Will Customers Travel To This Destination?

Travel agents sell transportation services along with accommodation and experiences. It is important to understand the specific travel options for every destination, along with the potential risks associated with each.

Again, you might bear in mind the growing preferences for sustainable travel options. Do customers have to travel by boat or plane to reach a destination? Is it possible to get there using greener transport options?

Are There Any Risks Associated With This Destination?

As well as transport risks, take the time to understand on-the-ground risks associated with popular or emerging destinations. These might involve enquiring about extreme weather, civil or political unrest, crime statistics, and potential health concerns.

The better you understand these risks, the better you can advise your customers on taking suitable precautions and the better you can protect your agency from risk.

What Insurance Will I Need To Sell Trips To This Destination?

This is another reason why it is important to understand the risks associated with any destination. This will help you ensure you have the right cover in place to ensure total peace of mind for you and your customers.

Once you understand these risks, we can help you get the cover you need at a competitive price.

James Hallam is an independent Lloyd’s broker with access to a hand-picked selection of A-rated insurance providers. We have provided specialist business insurance for tour operators and travel agents for over 20 years.

We provide a one stop shop service for the travel industry, and over 700 travel agents and tour operators depend on us for dedicated business insurance services. Also, we act as the trusted insurance advisor to ABTA and AITO.

Find out how we can help you today.

 

What Insurance Do You Need To Open a Pub in the UK?
What Insurance Do You Need To Open a Pub in the UK? 1000 556 James Hallam

If you want to open a pub in the UK, dedicated pub insurance will give you comprehensive cover to help you manage and mitigate numerous risks.

In this post we will outline the key areas of cover that every pub owner should consider. We will also discuss a few other factors to bear in mind, from choosing the right location to ensuring you have enough money to cover your initial startup investment and your ongoing running costs.

What Insurance Are Pubs Legally Obliged to Have?

There are at least two forms of cover that you simply cannot do without:

  • Employer’s liability insurance. If you employ any staff, even if they are family members, then you have a legal obligation to get employer’s liability insurance. This will cover your staff for any accidents or injuries they may experience while on the job.
  • Buildings insurance. You may also be required to get a level of buildings cover as part of your pub leasehold or freehold arrangement. If you enter into a contract with a brewer, they may set certain cover requirements too.

Recommended Insurance for Pub Owners

Beyond this, you should consider the following forms of cover:

  • Contents cover: To cover your fixtures, fittings, equipment, and barware for loss, damage, or theft.
  • Public liability insurance: To cover your guests and other members of the public for any accidents and injuries they may sustain while spending time on your premises.
  • Business interruption insurance: This can cover your overheads should an unexpected event, such as a fire or a flood, ever prevent you from opening your pub.
  • Product liability insurance: To cover you for any issues with the products you sell in your pub, such as food and drink.

Read our full guide to pub insurance.

What Else to Consider When Opening a Pub

Choosing a Location For Your Pub

Your pub’s location may be the biggest driver of your future success. As we will see below, when it comes to choosing a location for your pub, your ultimate decision may ultimately come down to your budget. But you should certainly consider the following when sourcing possible locations:

  • How will people get to your pub? Is it in a public area with lots of footfall? And if not, is there adequate parking onsite or nearby? And what are the public transport links like?
  • Customer base. What sort of people live in the area where you will be opening your pub? How old are they, and what is their average income? Understand the local demographics and you will have a better idea of how you can tailor your pub to meet their preferences.
  • Are there any other pubs in the area? Are they successful, or are they struggling? What are they doing that you could emulate? And crucially, what are they not doing that you might be able to do better?

How Much Does it Cost to Open a Pub?

The amount it will cost to open a pub will depend on whether you want to enter a pub tenancy, or buy a pub outright.

  • Pub Tenancy – This means that you will run an established pub for a set amount of time, which is usually around five years, without taking out your own pub lease or freehold. According to Greene King, which offers pub tenancies as well as franchise options, it costs at least £20,000 to enter a pub tenancy agreement.
  • Buying a Pub Outright – The amount you pay to outright buy a pub will depend on the pub’s location, and its condition. The overall costs of acquiring and refurbishing the property could easily reach five or six figures.

Calculating Your Pub Running Costs

  • Equipment, fixtures, and fittings: You will have to make an initial investment in a POS system; in fridges, coolers, and racks; in bar furniture; in lighting and décor, and in glassware and other barware. If you want to serve food, you will also need kitchen equipment. As well as the initial setup costs, you will also have to consider the ongoing costs of maintaining this equipment, and of repairing and replacing items where necessary.
  • Utility costs: You will have to pay for gas, power, and water. Businesses pay different rates for utilities than homes. Take a look at the latest UK business energy rates.
  • Supplies: You will regularly need to order new barrels and casts of beer and ale, while also keeping your supplies of wines, spirits, and soft drinks topped up. And if you want to serve food, you will also have to stay on top of your food stock. Pubs often enter a contract with a specific brewer to help streamline this process, as it may mean that they only have a single point of contact for arranging supplies.
  • Business rates: This is a tax applied to all properties that are used for business purposes. The good news is that pubs are eligible for the Business Rates Relief scheme. Head to the Government’s website for more information on how to apply.

Get Dedicated Pub Insurance From James Hallam

As an independent Lloyd’s broker, we have been providing dedicated insurance solutions to hundreds of pubs and bars across the UK since 1982. With our specialist Touchstone scheme, we can design a pub insurance package to match your unique requirements, whether you run a traditional pub in a small village, a high street wine bar, or a pop-up bar at events.

Learn more about our bespoke insurance services for pubs.

 

Risks Facing Hotels in 2026, and How To Mitigate Them
Risks Facing Hotels in 2026, and How To Mitigate Them 1000 667 James Hallam

In this post we will take a look at some of the trends and challenges that hotels may have to deal with in 2026. We will also explore how hotels and other hospitality businesses may manage and mitigate these risks.

Key Risks Facing Hotels

In 2026, we expect to see a range of risks continuing to impact the hospitality industry. In particular, we expect to see hotels continue to face the following challenges:

  • Cyberattacks
  • Rising Costs and falling profits
  • Staff shortages

We’ll look at these risks in more detail and explore what hotels can do to help mitigate the risk.

Cyberattacks for Client Data

Cybercriminals are getting smarter every year. Advances in artificial intelligence means that their cyberattacks are getting harder to detect, and harder to resist.

Hotels are prime targets for cybercriminals. Hotels store lots of valuable client data on their systems, and it is unlikely that your hotel staff will have received dedicated cybersecurity training to help them understand the risks.

How can your hotel meet the growing risk of cybercrime?
Through investing in staff training, and in advanced cybersecurity solutions. You could also acquire specialist cyber insurance. In the event of a cyberattack, cyber insurance can provide cover for customer data loss, for system breaches, and for any legal fees you might face following the incident.

Be sure to read our full guide to cyber insurance, and what it covers.

Rising Costs, Falling Profits

In recent years, hotels have struggled with rising energy prices and supply costs. And the problem is that guests are also feeling the pinch. If fewer people can afford holidays, then hotels across the world will see their profits tumble.

How can hotels mitigate the risk of rising costs?
There are a few ways in which hotels can stay afloat in this precarious economic landscape:

Hotel Staff Shortages

Across the world, hotels are struggling to attract and retain the skilled staff they need to deliver exceptional customer experiences. Low wages, demanding working conditions, and a lack of career progression means that many have left the industry to look for better paid and less stressful opportunities.

How can hotels tackle staff shortages?
How can you recruit and keep talented workers in such an environment? Through endeavouring to be the best possible employer:

  • Pay your staff as generously as you can. Also think about benefits, including healthcare, paid sick leave, pension contributions, and staff discounts. Yes, all of this will increase your overheads. But investing in your staff can lead to vastly improved customer satisfaction scores; while reducing staff turnover will help you make savings on recruitment costs.
  • Think about the work/life balance. Hotels run round the clock, which can lead to unpredictable rotas and unsociable hours. Consider ways you can help your staff manage these demands, such as through flexible hours, job sharing, time-off-in-lieu, and so on.
  • Aim to create a culture of open communication. Encourage your staff to talk about their concerns, and you may be able to intervene and offer solutions before any serious problems arise. Your frontline staff may also have some great ideas on how you might improve your hotel’s overall operational efficiency too.

Will Your Hotel Insurance Give You The Cover You Need in 2026?

Finally, as we enter the new year, it may be worth reviewing your hotel insurance to ensure it is still giving you the cover you need. The risk landscape for hotels is changing all the time, so a “comprehensive” policy from a few years ago may not necessarily cover you for all risks today.

James Hallam is an independent Lloyd’s broker with a dedicated team of experienced insurance specialists. We are committed to protecting your hotel, your staff, and your guests from every risk you might possibly face in 2026 and beyond.

Find out how we can help you get a bespoke and cost-effective hotel insurance policy today.

 

Why Has Hairdresser Insurance Been Increasing?
Why Has Hairdresser Insurance Been Increasing? 1000 667 James Hallam

If you are a hairdresser, or you run a hair salon, then you have probably noticed a rise in the cost of hairdresser insurance over the past few years.

In this post we will take a closer look at the issue, exploring some of the underlying causes and outlining how you can best protect yourself, and your customers, as a hairdresser.

How Much Is the Cost of Hairdresser Insurance Rising?

The cost of public liability insurance for hairdressers has almost doubled over a period of two years. In 2023, hairdressers were paying, on average, £47 a year for a public liability policy. By 2025, they were paying £93 for an annual policy. This means that the cost of cover increased by almost 100%.

In the same period, public liability insurance for hair salons decreased slightly, from an average of £230 a year in 2023, to £201 a year in 2025.

Do I Need Public Liability Insurance as a Hairdresser?

Public liability insurance is essential for hairdressers and salon owners. This will cover your customers, along with other members of the public, for any accidents or injuries that may happen as a result of your work, whether that is in a salon or elsewhere.

If a customer injures themselves on your premises, or if you cause an accident on your customer’s property, they may make a claim against you. In this case, your public liability insurance would cover your legal fees, along with any compensation payments that may arise.

What Is Causing The Rise in Hairdresser Insurance?

The Impact of Inflation
The rising cost of hairdresser insurance can largely be attributed to inflation, which has increased insurance costs for all businesses. The hair and beauty sector may have seen a higher rate of claims in recent years too, which will have contributed to rising premiums.

However, there is another important underlying cause at play.

The increasing prevalence of independent and freelance hairdressers
Independent hairdressers may work from their own premises, or they may rent a chair in a salon. Some may even do home visits. This creates a lot of potential for accidents and injuries: Slips, trips, and falls in a salon; spilled hair products in a client’s home; unattended hair straighteners leading to a fire; and so on.

Growing numbers of independent hairdressers means insurers may have to consider a much broader range of risks and, potentially, more frequent and costly insurance claims. This, unfortunately, will drive up the cost of cover for all hairdressers and salon owners.

How to Keep Yourself and Your Clients Safe

Effective risk management is vital for keeping you, your customers, and your premises safe, and comprehensive hairdresser insurance is an essential part of this.

Many businesses are currently struggling with rising costs, and increased insurance premiums certainly will not be helping.

Do Not Go Without Public Liability Insurance
However, no hairdresser or salon owner should go without public liability insurance. Accidents happen, and if they do, your liability insurance will help you meet all costs. Without this cover, you would be liable to meet these considerable expenses yourself.

Compare Quotes or Use an Independent Broker
If you are worried about the rising cost of cover, there may be some ways you can make savings. Be sure to compare quotes from multiple providers to ensure you are getting the best deal. Some insurers will also provide a discount if you get a combined policy, rather than a number of separate policies.

Working with a dedicated insurance broker can also make a huge difference. At James Hallam, we have helped hundreds of hairdressers and salon owners across the UK get the specialist insurance they need at a truly competitive price.

Find out how we can help you today.

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