What Insurance Cover Do You Need?
Mark S. Elliott has spent 25 years working in various management roles within the tenanted and leased divisions of the UK's largest breweries and pub companies. His extensive knowledge and day-to-day involvement with pubs and publicans make him well qualified to know what is required to run a successful pub. He shares his knowledge and many 'insider tips' with you in this book. Mark is based in Cockermouth, Cumbria.
WHAT INSURANCE COVER DO YOU NEED?
The type of cover you need will depend on whether you have acquired your pub on a tenancy, lease, or have bought the freehold of your pub. Insurance cover that you may require can be broadly divided into 4 main types of policies:
1 General pub insurance policies
These can cover:
- public liability;
- employers’ liability;
- fixtures and fittings and equipment;
- money;
- loss of licence;
- assault;
- business interruption.
Pub policies are specialist forms of insurance combining a range of insurance cover. This type of insurance is needed for tenancy, lease and freehold pubs.
2 Building insurance cover
This covers:
- The cost of reinstating the building in case of damage or destruction.
This type of cover is usually only required for leased or freehold pubs, as a tenant is not normally responsible for the ‘bricks and mortar’ of the building. For leases, the brewery or pub company may hold the building insurance policy and you may not need to arrange for this yourself. They may however, pass the cost of the building insurance premium on to you. Claims may also be handled through them. Various tenancy or lease agreements place different obligations on licensees. You should check with the brewery or pub company whether you are responsible for the building insurance and, if so, whether you are required to arrange this cover yourself or be re-charged for the premium.
Where you have bought the freehold of your pub, you will need to arrange building insurance cover yourself. (See below for more details.)
3 Home contents insurance
This is to cover:
- your personal possessions.
This is often overlooked when taking on a pub. Your pub policy may well not include cover for your personal items. Separate cover is required to ensure that these are correctly covered.
4 Life insurance
This is to protect:
- dependents and the business.
Lenders may insist that you take out life insurance cover to ensure that any outstanding debts can be paid in the event of your death.
Other insurance cover that you may wish to consider includes personal accident and sickness cover and private medical insurance. Please note that the above is not a definitive list and you should discuss your particular requirements with an insurance broker.
