Pub Insurance

What is pub insurance?

Pub insurance is a tailored policy made up of a range of covers that protect a pub against unexpected events. A typical policy may include cover for damage to the building and contents, theft, loss of earnings if you have to close, and injury to employees or members of the public.

Every pub is different, from independent family-run operations to national food chains, so the covers you include should match how your business actually runs: stock, premises, customers, bookings, equipment and staff.

What does pub insurance cover?

A pub insurance policy is built from several covers, and you choose the ones your business needs.

• Public liability: protects you if a customer or member of the public claims against you, for example after a slip or trip at your pub or illness caused by food or drink. Without it you could face substantial compensation payments. Read more about public liability insurance.
• Employers' liability: covers you if an employee is hurt or falls ill because of employer negligence. This is required by law if you employ anyone.
• Buildings insurance: covers damage to the structure of your pub, including the roof, walls, ceilings, floors, doors and windows, plus underground pipes and cables.
• Business interruption / loss of income: replaces lost revenue if you cannot open for a while after a fire or other incident, while your overheads continue.
• Products liability: protects you against damage or injury caused by products you have sold.
• Accidental damage: covers one-off accidents at the premises.
• Loss of licence: covers financial losses if you lose your alcohol or music licence and cannot trade normally.

Do I need employers' liability insurance for my pub?

Yes, if you employ anyone. Employers' liability insurance is a legal requirement for anyone involved in helping your pub to function. You do not need to be paying the person, and they do not need a written contract: volunteers, students, and part-time or full-time staff all count.

You also need to keep on top of your health and safety obligations, because failing to do so can invalidate your cover.

Depending on your pub, more than the minimum level of cover may be needed.

What is not covered by pub insurance?

Exclusions vary by insurer, but there are some you are likely to see in a pub policy:

• The policy excess, which you pay towards any claim
• Clauses around deep fat fryer equipment
• A warranty requiring you to keep all stock on pallets or racking, a certain height from the ground

These conditions show why it is important to read the policy wording before you buy, so you know what is expected of you and where you would not be covered.

How much does pub insurance cost?

There is no single price for pub insurance, because the policy is built from the covers you choose and the way your pub operates. The size and type of premises, the number of staff you employ, the stock and equipment you hold, and whether you add covers such as business interruption or loss of licence all affect the premium.

You can pay annually or in monthly instalments. Monthly premiums work out more expensive because interest is added.

Is pub insurance suitable for cafes and other venues?

Yes. The quote form includes a dropdown to select the type of business you run, and the options include cafes, coffee shops and takeaway businesses as well as pubs. The core covers, such as public liability, employers' liability, buildings and products liability, apply across food and drink venues.

How do I compare pub insurance quotes?

Complete one short form with details of your pub and the covers you want, and you can compare live quotes online from a panel of UK business insurers. The quotes are no-obligation, and if you wish to proceed you can purchase your policy.

If you are unsure which covers to include, insurers can talk through your requirements so the policy fits your business.