Why is Pub Insurance or Restaurant Insurance necessary?
If you own or operate a pub or restaurant or similar-style venue, then you will likely be aware of the unique potential risks that can come with it. Ensuring your employees’ and customers’ safety, protecting your business and replacing broken equipment, should you lose your license for reasons not under your control are all key concerns for those in the hospitality industry.
Being a restaurateur or pub landlord is a big responsibility and this is why a specialist pub insurance policy or restaurant insurance policy may be necessary in order to cover all aspects of your business and protect your liabilities.
What optional covers should I combine with my Pub Insurance or Restaurant Insurance policy?
Do you own the business premises?
If you own the premises, you should consider buildings insurance to cover you. If you rent the business premises, then buildings insurance is your landlord’s responsibility – but you should discuss this with your landlord to make sure they have not made you responsible by contract.
Buildings insurance covers the cost of repairing or rebuilding your business premises if they are damaged or destroyed by an unexpected crisis such as fire, flood or theft damage. Ensuring you can get your business premises up and running after an unexpected insurable event should be a key consideration. You should insure your business premises against the cost or rebuilding the property, not its market value or sale price.
Do you have employees? If you employ anyone outside of your immediate family, including part-time or casual workers or trade as a limited company, then the law requires you to have Employers Liability. Cover is for injury or sickness claims made by employees against you/your company, as a result of your negligence; the law requires that you have cover of at least the minimum level of £5 million most policies provide £10 million as standard. You should check if you need it, because you can be fined up to £2,500 for each day you do not have suitable cover in place.
Do you have stock as part of your business?
Stock is unique to every business, for Pubs and Restaurants this is usually made up of food & drink, including alcohol or both that needs to be considered. Insuring your stock is vitally important as it will help to cover the cost of replacing your stock at cost price if it is damaged, destroyed or stolen. Loss of stock can cripple a business, it’s important to ensure it is fully protected.
Do you have contact with third parties?
Any business which involves contact with customers should consider Public Liability cover. If you or your business ends up being responsible for causing damage or injuring someone as a result of negligence during your day to day business activities, then Public Liability insurance can cover the costs related to someone making a claim against you.
Do you sell products to consumers?
Many businesses take out Product Liability insurance to protect them from legal costs and damages awarded as the result of claims made against them under product liability laws. Most of the responsibility falls on the importers or manufacturers, those businesses that supply own-brand products, customise or service the commodities as the modification can affect the safety of the product. Pubs and Restaurants have legal responsibilities for all the products that they stock and sell. Anyone who is harmed by an unsafe or contaminated product that you have sold can place a claim against you. You can be sued by an individual who is injured or by an unsafe product that you have supplied even if they didn’t buy the product themselves.