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Buying insurance for your pub
Running a pub, cafe or restaurant is often seen as a fun way to make a living, but like owning any SME it can be very hard work and have real highs, lows and challenges. There are lots of things to think about when you’re running a pub, whether it’s a traditional drinker’s bar, a gastro pub, wine bar or party venue. And just one of those things is making sure you have the right level of pub or landlord insurance.
Buying insurance might not be your favourite job as a landlord, but we can help you understand exactly what’s involved, why you need insurance and how to choose the best policy for you at a price that doesn’t make you grimace.
comparethemarket.com can help you compare different landlord insurance policies based on the specific details of your business, so you will get a good understanding of the costs and different levels of cover.
All you need to do is complete some details online. Just select the business section of our site, and look under business insurance – there’s a special button just for pubs. We’ll then get an expert to call you back and discuss the specific requirements for your business.
First they’ll ask some information about you and where your pub is. Then they need a few details about the business and what sort of cover you want. Then you’ll see a list of quotes, in price order.
The questions are important, because no two pubs are the same. Insurers need to understand exactly what kind of business you have, whether it’s a nightclub, pub or licensed pizza place. We’ll ask if you have a dance floor, security guards, children’s play area, deep fat fryers and a few other things that insurers like to know about. That’s because they need work out what kind of risks your business might face and calculate your premium based on that.
So let’s look at the kinds of cover you might need as part of your business insurance.
Public liability insurance
The first is public liability insurance. This kind of insurance means you can claim on the policy to pay compensation to anyone on your property who loses property or it gets damaged, or they suffer some kind of injury. An example might be a customer slipping on a wet floor and breaking their arm. As a pub you are ultimately liable because it’s your responsibility to oversee that your property is safely maintained. Public liability insurance limits usually are offered at around £5m.
If you have one or more people working for you, you will need employer’s liability insurance. This is a legal requirement and is usually offered at £5m as standard. Employers’ liability insurance means that you have access to funds if you need to compensate a member of your staff - it might be because they have suffered an injury from a situation that you, as their employer, are liable for.
Building and content
You might also need buildings insurance as part of your landlord cover. Building trade insurance for the pub is specifically to cover damage to the building. These days most pubs are tenanted so building insurance is optional (building insurance is the responsibility of the property owner). One thing you might consider, though, is cover for tenants’ improvements. Say you put a new kitchen into the pub – this may not be covered by the buildings insurance for the owner, so you could add in a level of cover for these improvements in case they were to get damaged.
If you do own the building, you should work out roughly the cost of rebuilding the property so that if there was some kind of disaster, you could let buildings insurance pay for the rebuild of the pub. Again, we can help you compare landlords building insurance.
Much as with house insurance, in addition to buildings cover you can also include contents insurance. Insurers often describe ‘contents’ as all the things that would fall down if you turned your pub upside down. So that means furniture, lamps and decorations are contents, but walls, ceilings, toilet fittings and kitchen cabinets come under buildings insurance.
For a pub, contents also include all your wine, beers, spirits and other stock which is clearly very valuable… so you should think about covering them as part of your insurance.
Protect your cash and licence
Another area is money. You can buy optional cover to protect all funds on the premises and/or in a locked safe on the premises overnight.
Some landlords choose to buy business interruption insurance to provide funds if the company cannot trade for some reason. You will need to state how much cover you would want and how long a period of interruption you would want to cover.
Finally, an important kind of insurance specifically for landlords is loss of licence cover. Losing your licence could be catastrophic, because a pub that can’t serve alcohol doesn’t hold much appeal to customers! By insuring against losing your licence you can protect your business against some of that loss while you work out what to do.
Hopefully this information has helped you understand the different parts involved in a pub-specific business insurance policy. Now you can use comparethemarket.com to shop insurance deals. Our experts will help to find a deal that suits you.