Public house insurance in 2024. A complete guide.
Public house insurance
As a public house owner, you have your fair share of work to take care of. Having the right insurance coverage for your business is essential.
First and foremost, public house insurance protects the public - your customers, and it should also protect your employees, buildings, and assets.
Managing a public house comes with many risks, and there are various coverage types you can choose to protect yourself.
This article will cover what insurance you need to run your business as safely and efficiently as possible.
Table of contents
- What does public house insurance cover?
- Liability insurance for public house
- Additional public house insurance coverage
- What public house insurance should I choose?
- Public house insurance FAQ
- Public house insurance cost
What does public house insurance cover?
Public house insurance, also known as pub insurance, protects pubs, bars, public houses, and restaurants, all to the same effect.
This specialized insurance is a policy for licensed business owners to protect their businesses and assets.
Public house insurance typically includes coverage for employees, customers, and business contents, all under one comprehensive and customizable policy.
Public liability insurance is essential for your public house. This insurance will cover you against financial losses and claims from the many risks associated with your business premises.
From public liability insurance, you can also pick and choose cover for your work equipment or employers' liability insurance for your team, for example.
Next, we will cover all of the insurance types available for your public house.
Liability insurance for public house
First on the coverage list is liability insurance for public houses. Public liability insurance is essential for your business.
Public liability insurance for public houses
Liability insurance for public houses protects you against claims due to injuries, illnesses, or property damages to another party when your business is found at fault.
Public liability coverage is a form of public liability insurance for guests. Whether you've been held liable for a drunken accident on your premises or due to a faulty chair, public liability insurance for pubs can shield you from expensive claims.
In addition, public liability insurance covers:
- Damages caused to someone else's property if your business is at fault.
- For any accidental damages or injuries to the public caused by your employees.
- Any injuries or illnesses caused by your business activities and/or products.
Case study scenarios
One of your customers broke their arm after slipping on a spilled drink. They sue you, and you're held liable for their injury and medical fees.
Your head chef undercooked a meat dish, and one of your customers got sick. You're held liable for food poisoning.
You can find out more about public liability insurance here.
Employers liability insurance
This coverage will protect your business if any staff member (temporary or permanent) gets sick or injured while working for your public house.
Employers' liability insurance protects you from financial losses whether your staff caught a stomach bug while working or injured themselves due to faulty kitchen equipment.
Employers' liability insurance for public houses covers you against:
- Any injuries and illnesses that result from working for your business (for permanent staff, temporary staff, and casual workers).
Note: Employers' liability insurance is required by law if you hire employees. Without this essential coverage, you could face fines for every day you're not covered for each employee.
Case study scenarios
One of your trainee staff members falls and sprains their ankle while training with you. They have to rest, and you could be held liable for injury, leaving you without a new staff member.
One of your employees was stacking bottles on a broken shelf. Bottles fell to the ground, and the smashed glass injured them. They sue you for having an unsafe work environment.
Building insurance
This coverage is essential to protect you if something happens to your pub premises. This could range from walls needing repair work to faulty fixtures needing to be replaced.
In addition, building insurance for public houses typically covers:
- Any damage to fixtures and fittings that need to be repaired or replaced.
- Damage caused to fixtures such as pipes and cables that you are responsible for.
- Any expenses for repairing damages to the building or for rebuilding the structure.
Case study scenarios
A deep fat fryer caught on fire, damaging your kitchen. Your whole kitchen needs to be rebuilt.
Vandals break your windows, forcing you to close your business for repairs. These repairs take one week to get resolved.
Due to an earthquake, you must replace your pub's flooring and have professional builders do repair work. The repairs could take months of renovation work.
Content insurance
This coverage will protect your business fixtures, fittings, and equipment. Content insurance can cover issues with your work equipment to extreme weather incidents, shielding you from costly expenses.
In addition, contents insurance for public houses covers:
- Fees in the event of damages caused by theft, flooding, and fire.
- Any accidental damages to the equipment used to run your business and any damages to fixtures and fittings on your premises.
Case study scenarios
Your business premises suffered damage after an attempted robbery, forcing you to close your public house for weeks.
One of your employees accidentally breaks a coffee machine, and you have to replace it quickly to keep your business running.
Money and electronic devices were stolen from your pub, and you need them to be replaced as soon as possible.
Money cover
Thefts and vandalism cause financial loss and result in severe property damage. Money cover insurance will protect you if your public house is broken into or vandalized.
In addition to another party, money cover will protect you from employee theft or vandalism.
Money cover for public houses covers:
- If money is stolen from your cash register.
- If your business earnings are stolen while in transit to or from your bank.
- The cost of any expenses for repairing damages due to vandalism and theft.
Case study scenarios
Vandals cause damage to your benches outside of the premises. You need to have the benches professionally cleaned and re-painted.
One of your employees breaks in overnight and attempts to steal electronic equipment, breaking a window in the process.
Additional public house insurance coverage
Deterioration of stock insurance
This insurance coverage will protect your business if something unfortunate happens to your stock of drinks or food products.
This could range from spoiled food ingredients to contaminated drinks. Stock insurance ensures you are protected from costly claims and legal matters.
Stock insurance for public houses will cover:
- Costs to replace unusable, damaged, and spoiled goods.
- The loss or theft of business stock such as drinks, food, or branded materials.
Case study scenarios
A delivery of drinks is in transit on its way to your public house. On the way, due to a minor accident, drinks are smashed in the back of the transit van. These drinks must be replaced as soon as possible.
Due to a flash flood, unrefrigerated food was spoiled and destroyed. Stock insurance will ensure you can replace these as soon as possible.
Due to an electricity blackout, your refrigerated food was spoiled. You need to replace everything that was stored in your fridge.
Business interruption insurance
This insurance type will protect you if you can't trade for any reason related to the theft or damage of your business essentials.
Business interruption insurance ensures you will be compensated for the loss of sales if you're unable able to work.
Specifically, business interruption insurance typically covers:
- Your business income - if you are unable to continue trading due to damaged and stolen stock, contents, or damaged buildings.
Case study scenarios
All of your stock has been stolen, and you can't open your pub until this has been resolved.
You're forced to stop trading due to a flood that damages the structure of your pub.
The pipes in your kitchen cause extensive water damage. You have to stop trading while the pipes are repaired.
Personal accident insurance
This coverage will protect your business if anyone you've covered is accidentally injured off-duty or at work.
Personal accident insurance can cover the costs, whether you have to pay for medical expenses or lost income.
Personal accident insurance covers:
- Lost income, medical costs, and hospitalization benefits.
- Accidental injury or death, inside or outside of work, for anyone covered by the policy.
Case study scenarios
Your temporary staff member suffers an injury while at home. They have medical expenses to pay for, and you need to find cover during a busy period.
You break your leg after slipping on a spilled drink in your establishment, and you must take one month off work.
Legal expenses insurance
This insurance will cover legal expenses connected with your pub. Whether that's legal costs or compensation payouts, legal expenses insurance can protect you from facing expensive fees.
Legal expenses insurance typically covers:
- Legal expenses attributed to your business and business activities.
- All matters related to tax issues, investigations, and compliance disputes.
- Legal claims and compensation payouts associated with property damage or trespass.
Case study scenarios
You need to pay for legal representation for providing incorrect financial information on your tax report.
You sack an employee, and you're taken to court on the basis that it was an unfair dismissal.
Summary
The following section will overview what we've covered so far and help you choose the right insurance.
What public house insurance should I choose?
For public house owners, public liability insurance is essential.
If you hire any number of staff (whether that's contractors, casual, permanent, or temporary staff), it's also essential to take out employers' liability insurance. You can face daily fines per person for staff members you haven't covered.
From basic liability insurance, you can choose from other specialized protection, such as protecting your business' stock, equipment, and building.
When choosing your public house insurance, you should consider the maximum possible loss. If you're unsure what that is, your insurance provider can help you ask the right questions.
Make sure you consider legal fees when choosing the correct level of coverage for your business.
Public house insurance FAQ
What measures should I take to cover kitchen equipment?
There are several hazardous pieces of kit in your kitchen. A deep-fat fryer is one of the highest-risk appliances used by your business. You should follow safety measures when using one for this reason.
If you're making a claim and haven't met the conditions outlined here, your policy could be invalidated, and you might not receive a payout.
You should check the user manual for the fryer you use and follow all the safety requirements. Ensure you comply with the fryer's service record and cleaning schedule, and use the necessary safety equipment when the fryer is in use.
You should also ensure to employ contractors registered to work on fryers if you ever experience a fault with your machine.
Does public liability insurance cover my employees?
No, public liability insurance does not cover your employees. Only employers' liability insurance ensures your staff members are adequately protected.
Essentially, public liability insurance legally and financially protects your business against members of the public's injury and damage claims.
When it comes to covering your employees' causing any damages or injuries, and for other reasons, the only way to ensure those events are covered is with employers' liability insurance.
To see more FAQs about public liability insurance, see here.
Public house insurance cost
The cost of insurance for a public house is dependent on several factors.
- The average number of guests
- Size and location of the business
- Number of employed staff members
- The annual revenue of your business
The cost also includes:
- Your claims history
- What coverage is required
- The policy limits and deductibles
If you are looking for cheap public house insurance, it's best to shop around to know your options. Receiving free quotes will ensure you find the best deal available to you.
By comparing quotes, you will find the average cost of pub insurance. You can then choose what goes into your customized insurance policy, so you only pay for what you need.
Public house insurance quotes
Public houses are a labor of love. Having the right public house insurance will give you peace of mind to keep your reputable business running smoothly.
Whether you run a small public house or own a chain of restaurants, our insurance experts can help you take out a simple business policy hassle-free.
With 35 years of experience, Pitsas Insurances can guide you to optimal decisions according to your specific needs and budget constraints. We will help you find public house insurance that fits your specific business needs.
Business insurance USA
For companies registered in the USA, you can receive quotations from Progressive Commercial.
Business insurance UK
For companies registered in Britain, you can receive quotations from Simply Business.
Business insurance Cyprus
For companies registered in Cyprus, you can receive a quotation from Pitsas Insurances by completing the quotation.
If you have any more questions, contact our insurance experts and work with a licensed agent to determine your needs. We offer a fast turnaround.
For more about how our team of insurance experts can help you, see here.