This post is an essential introduction to insurance for pubs. We will assess how much you might expect to pay for your pub insurance, along with some of the factors that can affect the price of your policy. We will also outline some key insurance products you should consider if you own and run a pub.
Average Annual Insurance Costs For Pubs
According to research from a major price comparison site, pub insurance in the UK costs an average of £3,800 per year.
However, many factors can affect the price of pub insurance, which means that the cost of cover can vary greatly on a pub-by-pub basis.
What Affects The Price of Pub Insurance?
Your pub’s location
If your pub is located on a flood plain, or if it is located in an area with high crime rates, then it will likely drive up the cost of your cover.
Your pub’s size, and turnover
The bigger your pub, and the more money you make, then the more you will have to pay for insurance. The size of your business can affect the sort of risks you are exposed to, along with the costs associated with recovering from these risks. Plus, the bigger your workforce, the higher your premiums.
How you run your pub
You may have to pay more for cover if you stay open late, as the more time customers spend on your premises, the greater the risks for them, your staff, and your property. You will also have to pay more for cover if you serve food, and if you put on live events at your pub.
The level of cover you choose
You will be able to choose from a range of cover options, and you will be able to specify how much of an excess you pay.
What Types of Insurance Do Pubs Need?
- Employer’s Liability. If you employ any staff, even if it is just a single employee, then you have a legal responsibility to get employer’s liability insurance. This covers your staff for any illnesses or injuries they may sustain on the job.
- Public Liability. This covers your customers, along with any other members of the public, such as tradesmen or delivery drivers, for any injuries they may sustain while in or around your premises.
- Buildings Cover. This covers your pub’s physical premises for damages associated with fire, floods, storms, break-ins, and vandalism.
- Contents Cover. This is cover for any goods or equipment you store in your pub, including furniture. You may need additional cover for your stock, and there may be limits for the amount of cover you get for cash you keep on your premises.
- Product Liability. This can cover your legal fees, along with any compensation that might be due, if a customer claims they developed an illness, or an allergic reaction, having consumed food or drinks prepared or sold on your premises.
- Business Interruption Insurance. If an insured event, such as a fire or a flood, means you are unable to open your pub for a while, business interruption insurance can cover your overheads while you recover. Pub owners may also wish to get dedicated loss of licence insurance.
Who is Responsible For Pub Insurance?
The pub’s landlord – that is, the person who owns the building – is responsible for arranging building insurance.
The pub tenant is responsible for arranging contents insurance, and certain other forms of cover. For example, if the tenant is considered an employer under a licencing agreement, they may be responsible for arranging employer’s and public liability insurance.
Please note that, if you live on your pub premises, then your home insurance policy will not give you all of the cover you need. You will need specialist pub insurance to cover you for all the risks associated with running such a business.
Get The Pub Insurance You Need 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.