So what is this type of insurance and how could your benefit? There are many reasons why you would need this insurance and there are also many benefits to taking out a policy. The first of these is that of course as this is a pub there will be many people coming through the doors each day and it is essential that if anyone should get hurt whilst on your premises you have liability insurance that would payout towards court and solicitors costs. Without this you would have to find the money out of your own pocket and these things could work out to cost an arm and a leg!

Secondly you will have staff working for you. These could include bar staff, cooks, waiters and even kitchen staff depending on the size and type of public house. You would need to have liability insurance for all your staff and generally an insurance policy based for public houses/restaurants will also provide liability insurance for your staff. If they should then become hurt or injured in anyway whilst doing their job you could claim on your insurance policy.

Usually the stock in the pub would also fall under the insurance policy but you would have to check to find out what exclusions there could be and what limitations. Generally there will always be some in all insurance policies and the amount could depend on the insurance provider. If stock were to be stolen or destroyed which in a pub would be alcohol this could run into many thousands of pounds to replace which could be impossibility if you were not covered as you would need to find this money yourself.

Finally remember that as with all types of insurance public house insurance will come with a certain amount of excess that would have to be paid by you if you should have to make a claim on the policy. The amount of excess that you would need to pay before the insurance company would payout on the rest of the claim could differ. While you might think that £200 of excess is a lot of money to payout bear in mind that if your stock was to be stolen or destroyed and this totalled £2,000 then the excess would be a trivial amount to have to pay out of your own pocket.

The unique nature of a pub’s business means that it is advisable to consult an insurance specialist with experience in this industry, to ensure that they choose a policy which will fit your needs.

Pub cover is likely to be comprised of the following elements:

• Employers liability insurance
  Employers liability insurance is compulsory and does not merely apply to potential liabilities to employees in the narrow legal sense. Contractors are also covered. The employer must have adequate insurance for claims that his employees (or contractors) make for injuries they have incurred while working for him.
• Public liability insurance
  Although not compulsory, public liability insurance is essential in practice for any business that has dealings with the public. This applies whether anyone actually visits your premises or not. Successful claims (especially for personal injury) can be enormous and will include the claimant’s legal fees.
• Buildings insurance
  If the pub is rented, check the lease to see whose responsibility it is to insure the structure. If it’s your responsibility, make sure that the cover is adequate for the particular property. For example, if the pub is listed, the Council would require the building to be reinstated to its previous condition (and character) rather than merely repaired to its market value.
• Contents insurance
  A pub’s fixtures and fittings are an important part of its character and appeal, so it is essential to have cover in place for contents insurance, including food and beverages. From a practical perspective, electronic equipment for ordering and paying for food also needs to be insured, as the business cannot operate efficiently without them. Given that most people still pay for drinks with cash, cash insurance is also a good idea to cover break-ins. The insurer might insist on better locks and safes, but this is also good practice.
• Business interruption
  Business interruption insurance might be in the buildings insurance element of your pub cover. However, if it is not included, discuss the issue with your insurance provider. Particularly in areas with seasonal pub trade that rely heavily on the summer months, having business interruption insurance could be the difference between survival and failure if a disaster means that your pub cannot be repaired quickly enough for you to open for trade.

As with all insurance premiums, for affordable pub cover it is wise to conduct a risk management assessment and address any concerns before the insurance specialist visits.

What is included in public house insurance?

There is no set formula, but pub cover might contain a number of the following components:

• Employer’s liability insurance is typically required by law, and covers claims relating to the health and safety of your employees while they are at work.
• Buildings insurance should cover claims for damage to the structure of the building from accident, fire or malicious actions of others. Many pubs are in listed or historic buildings, so it may be wise to insure specific features themselves to make sure that they are covered to an appropriate replacement or rebuilding value.
• It’s prudent for anyone carrying on a business to have public liability insurance. This is a “sweep up” category relating to potential claims made for damage you may cause to the person or property of members of the public who come into contact with your business. So, for example, claims brought by a customer who slips on a beer spillage and breaks his leg, or the dry cleaning bill of the lady who has soup spilled on her dress by your waitress would be covered by public liability insurance.
• Contents insurance, in the context of public house insurance, would relate to stock (both perishable and nonperishable) and loss of cash from break-ins.
• Pubs are likely to employ casual staff, so you may wish to add fidelity insurance, which covers losses due to employees’ dishonesty.
• Business interruption insurance relates to the loss of trade you might suffer if the premises were damaged by fire, for example.

Who can help me?

It is important to go to a specialist insurance provider who understands the hospitality industry. A provider who is experienced with pub cover can suggest issues you may not have considered, and will be familiar with any claims that do arise, making the process smoother.

How do I choose a policy?

• Check the detail carefully. For example, if you offer guests bed and breakfast, check how many guest bedrooms the policy will allow before you are catapulted into the more expensive “hotel” category. If your pub offers entertainment, make sure that it is not classed as a nightclub.
• Assess the service levels. How quickly did the provider return your calls or supply information? These issues would be even more important if you ever have to make a claim.
• Calculate the value of excesses. Most policies will have an excess, which is a certain amount. If claims are under that amount, you will not be entitled to cover for them. The higher the excess, the cheaper the policy because there is a lower chance that you will actually be able to claim on it. However, you should weigh up the benefit of a cheap policy compared to the inconvenience of not being able to claim for a percentage of claims against you.