Pub insurance: All you need to know

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    At Swoop, we want to make it easy for SMEs to understand the sometimes overwhelming world of business finance and insurance. While we adhere to a strict editorial policy, our goal is to simplify complex matters, offer transparent information, unravel jargon, and empower businesses to confidently make smart financial decisions.
    Chris Godfrey

    Page written by Chris Godfrey. Last reviewed on January 4, 2024. Next review due April 6, 2025.

    There are more than 25,000 pubs and bars in the UK, and every one of them offers a unique hospitality experience. However, despite this diversity, they have one thing in common – they all need pub insurance to protect them from financial calamity if the worst should ever happen. 

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      Why do I need pub insurance?

      Imagine if a fire in your pub or bar destroyed your fixtures and fittings and all your stock, perhaps even took the building down. What would you do? Could you rebuild from scratch? Additionally, how would you cope if a visitor to your pub tripped on a loose floor tile and made a large claim for compensation? Or what if one of your employees became sick because of the work they do for you? Could you afford to pay these claims? Could you afford to stay in business? 

      The fact is, pubs and bars are complicated businesses, and they present many different risks – some with the potential to close your business down. This means pub insurance is a must for every pub and bar. Providing an important financial cushion, it’s designed to reduce or eliminate the impact of many common risks. Operating without this kind of cover is just gambling with your business.

      What kind of insurance do I need?

      Pub insurance is an umbrella term for a range of business insurance that can provide protection against almost every type of negative event. Important insurance includes:

      Public liability cover

      Public liability insurance protects your pub if someone is injured, or their property is damaged because of the services that you or your business provides. This type of cover, also known as PL or Liability Insurance, is designed to protect your business against third-party claims for injuries or property damage from a customer or client, passer-by, or a visitor to your operating premises – whether you’re at fault or not.

      Employers’ liability insurance

      Under the Employers Liability Act of 1969, Employers’ liability insurance (EL) is a legal requirement for most UK employers. EL protects you and your employees, (including those who no longer work for you), should they be injured or become unwell as a result of working for your business. EL typically covers the associated legal and compensation costs, and other damages of such events, but it can also cover accidental injury or damage caused by an employee to a third party, such as your customers. 

      Loss of licence insurance

      You need a licence to sell alcohol, and if you lose it, it could be a disaster for your pub. Loss of licence insurance can cover you for loss of income if your licence is cancelled through no fault of your own. It may even give you back the value of your property. However, this type of insurance may not protect you if your licence is suspended or taken away because you have been found at fault  – such as selling alcohol to underage drinkers, or if your licence is removed due to an ‘extraneous event’ such as act of parliament or council planning permissions. 

      Money cover for lost or stolen money

      Money cover can protect any cash you keep in the till or locked in a safe on the premises from loss or theft – including by employees. It may also cover money in transit, such as when you take your takings to the bank after cashing up. 

      Business interruption insurance

      Business interruption insurance covers you for lost income if your pub or bar is unable to operate due to an unexpected event. This would include incidents such as:

      • Fire and flooding at your premises
      • Power blackouts 
      • Major equipment failure 
      • Supply chain issues beyond your control
      • And more

      Contents insurance

      Contents Cover will help to replace the contents of your pub in the event of fire, flood, theft, and accident. Use contents insurance to pay for new fixtures and fittings, equipment, stock and samples and employees’ personal belongings if they’re damaged, lost, or stolen. 

      Deterioration of stock insurance

      Stock insurance will help to cover the cost of replacing stock that is lost, stolen, damaged by fire or flood or is spoiled due to events beyond your control – such as a faulty freezer that ruins your food inventory.

      What does pub insurance cover?

      Pub insurance can cover pubs and bars against:

      • The costs of any claims by third parties or your employees for personal injuries or property damage they say has been caused by your business. The cover may also include your legal expenses or those claimed by the other party
      • Claims from third parties who say they have been harmed by the products you sell
      • Loss of equipment, stock, fixtures and fittings due to fire, flood, theft or vandalism
      • Downtime or closure of your pub due to damaged equipment or premises
      • Damage to or complete loss of your business premises if you own the building
      • Damage to your business reputation or loss of trust by your customers

      How much does pub insurance cost?

      Insurance for pubs can cost as little as £100 per month. However, the premium you pay will depend on a range of unique factors, such as the type of pub or bar you run, the scale of your business, where you are located, and the number of workers you employ.

      How Swoop can help

      All business involves risk, but that doesn’t mean you have to suffer the consequences if things go wrong. Don’t let an accident, mishap or error call time on your pub or bar. Contact Swoop today to compare top-quality pub insurance from a range of providers and to discuss all your business insurance needs. 

      Written by

      Chris Godfrey

      Chris is a freelance copywriter and content creator. He has been active in the marketing, advertising, and publishing industries for more than twenty-five years. Writing for Barclays Bank, Metro Bank, Wells Fargo, ABN Amro, Quidco, Legal and General, Inshur Zego, AIG, Met Life, State Farm, Direct Line, insurers and pension funds, his words have appeared online and in print to inform, entertain and explain the complex world of consumer and business finance and insurance.

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