Employers' liability and public liability pub insurance
Public liability – This provides cover of up to £5,000,000 for sums you become legally liable to pay in respect of accidental injury to any person or accidental loss or damage to their material property happening in the course of your business or caused by the nature or condition of anything sold or supplied by your business.
Employers liability – This cover can provide up to £10,000,000 for sums you become legally liable to pay as damages, together with your legal costs and expenses relating to an injury to an employee for which you are legally liable.
Slips, trips and spilt drinks. – This is one of the most common causes of accident in a pub and is exactly the reason why liability insurance is so important.
Entertainment – Events and entertainment are activities that may just be noted on your policy, sometimes it can require extra cover though. To whatever capacity you hold events, it is vital that you discuss your plans with your insurer. Even if the insurance doesn’t cost you any extra you must have it noted on the policy, there are very few business around today that can afford a liability compensation claim without public liability insurance. The trick is to give as much information as you can during your quote, this way you only need to call you insurer as the situation changes. Employers' liability insurance is a legal requirement is you have any number of staff working for you in any capacity.
Loss of money - Cash is usually covered up to £2-3000. If you require a higher level there is likely to be security requirements which would need to meet, such as having a safe on the premises. A pub generally handles a lot of cash, so make sure that you purchase adequate money cover and that this covers you during trading, when in transit and/or in a night safe when the property is unoccupied, depending on what is relevant to you.
Business interruption (loss of profits) - This helps you stay in business by covering loss of gross profit and reasonable expenditure incurred as a result of an event such as a fire or theft. The indemnity period is the amount of time this cover can be claimed for.
A ‘gross profit sum insured’ of £500,000-750,000 with indemnity period of 24 months is standard for a pub. It is possible to insure for only 12 months but insurers are not as keen on this as it is unlikely a pub could return to the same levels of trading after a full rebuild or refurbishment of a property all within 12 months. The easier the building to re-build and lower your income – the lower you can set the insurance limits.