What insurance considerations are there for pub owners?January 23rd, 2018
Just like any other type of business, a pub has its own unique set of considerations when it comes to buying insurance. A standard business insurance policy won’t provide the extent of cover to ensure that typical public house concerns are met. So what pub insurance requirements need to be considered?
Claims made by customers
An element of public liability insurance is essential protection for pubs. This covers a situation where a customer – or other member of the public – has been injured or suffered loss on the premises. So, it could be a claim from a customer who has fallen in the pub or a diner who has been ill as a result of food eaten in the pub restaurant. Claims like this can be incredibly costly where there is no insurance in place to cover them.
Losing the pub licence
If this happens then the consequences for the business could be severe. Insurance protection could help to mitigate the situation.
Replacing stock or equipment
Floods, fire or vandalism can result in a loss of stock or key equipment and this can prevent a pub trading. It’s crucial for pub owners to have cover so that there is cash to replace essential stock or equipment – with a seasonal adjustment for those months when stock levels are higher. Pub owners with a tenancy or lease need to confirm with the landlord what they are expected to cover as this may be more than you think.
Glass and sanitary fittings
These are often the parts of the pub that require specific cover when it comes to insurance. This is because they are often more vulnerable to damage than they might be in another business and can be costly to replace.
Break-ins and theft
Although many pubs are working towards being entirely cashless, for most this is still not the reality. Pubs are a target for thieves overnight due to the large amounts of cash that tend to be stored on the premises. For many, visiting a bank night safe after closing is just not an option. So, takings should be stored in a safe and insurance in place to cover potential loss – including those periods such as bank holidays when takings could be considerably higher.
If something happens to one of your staff while they’re working for you then you could find yourself facing a significant claim – as well as being down one member of staff. Employer’s liability cover is key to making sure that the business doesn’t have to cover the cost of an employee’s claim, which could be in the thousands. For more information about Employers Liability see HERE.
Like any business, a pub relies on certain circumstances – physical or otherwise – to continue trading. If something happens, such as a fire or a major flood, then the pub may not be able to open. The result is a loss of trade and a drop in profits that could have serious consequences. Cover for business interruption provides back up – based on your gross profit – should the worst arise. See HERE for more about Business Interruption.
If you’d like to find out more about pub insurance requirements – and how to ensure that you’re covered – get in touch with Morgan Richardson today.