Get the Best Pub Insurance Quotes for 2024
Did you know that more than 8,600 pubs have closed down across the UK in the last 9 years? The most common factors in all these closures were staffing problems and a lack of clientele. While broader shifts in society are difficult to manage, the one thing you can do to prepare for the unforeseen is to have the right insurance in place. The right insurance policy may be able to help you weather staff shortages, adverse economic conditions and even temporary closure.
In this guide, we explain what pub insurance is, and how it works and how to find the best insurance for a pub from the UK's leading pub insurance brokers.
Ageas pub insurance review
Ageas is a multi-national insurance company founded in 1824 as AG. Ageas has 4+ million UK customers and also provides auto and home insurance. Its telephone helplines are open 24/7, 7 days a week. You can buy Ageas pub insurance through a broker. Claims should be made online through their claims portal, using a simple form.
Ageas offers pub business insurance. Your broker can help you choose the right coverage options to protect your pub.
Pros
- 24/7 helpline
- Flexible policy allows you to change your policy as your business grows
- Personal accident coverage
- Legal coverage
- Product liability included
Cons
- Cannot buy directly, only through a broker
AXA pub insurance review
AXA is a massive international insurance company working around the globe. AXA's pub insurance can insure up to 10 locations. Stock deterioration is automatically covered up to £5,000 and accidental damage is a standard inclusion.
AXA offers pub and restaurant insurance with lots of options and ways to tailor the coverage to your pub's needs.
Pros
- Max turn over £8 million
- Accidental damage included
- Stock deterioration covered up to £5,000
- Can cover up to 10 locations of the same business
- Dispensing errors covered up to £100,000
Cons
- Pub restaurant insurance rather than specific pub insurance policy
Hiscox pub insurance review
Hiscox is a specialised insurance provider founded in London in 1901. Hiscox offers a combined set of insurance policies to cover your pub, with a wide range of add-ons. Hiscoxpub insurance is flexible and offers specialist protections, for example, high-value contents (such as high-end catering equipment). Hiscox additionally offers unlimited changes to your policy so that your insurance can adapt as your business evolves and changes.
Hiscox has a business insurance policy that can be tailored to particular needs but no specific pub insurance policy.
Pros
- Hiscox's pub insurance policy is flexible, with no limit to the number of changes you can make
- Large range of extra coverages
- Specialist coverages such as high-value contents insurance
Cons
- No specific pub insurance policy
Zurich pub insurance review
Zurich is a Swiss insurance founded in 1872 and one of the largest insurers in the world. In 2022, Zurich won a 5-star eTrader rating for its transparency of service and responsiveness to customer queries and claims.
Zurich has a business insurance policy that covers pubs but no specific insurance policy
Pros
- Very positive customer reviews
- Good pay claim rate
Cons
- Cannot buy directly, only through a broker
- No specific pub insurance policy
RSA pub insurance review
RSA was founded in 1996 in London, however, its roots go back to the Sun Insurance company which was founded in 1706 and is one of the oldest in the world. Defaqto, an independent financial services company, awarded a five stars rating to RSA's pub insurance package in 2022.
RSA's pub and bar insurance policy is full of business-specific protections, including business interruption due to sickness, drink poisoning or crime scenes. One policy can cover up to four premises.
Pros
- £5,00 coverage for pub garden furniture
- Free 24-hour helpline
- Five stars rating from Defaqto
- Drinks leaks covered
- £250,000 of coverage for closure due to food poisoning, suicide, murder and sanitation problems
Cons
- Holds a bad customer satisfaction rating
- Poor rating on Trust pilot
What is pub insurance?
Commercial pub insurance is a type of business insurance that protects your business, your employees and the physical buildings and contents of your workplace. Pub insurance at its bare minimum requires you to have liability coverage for your employees.
Running a public house is a complicated and risky business. There may be circumstances outside of your control that force you to close the pub for a period or lead to the contents being damaged or stock being lost. Pub insurance gives you the peace of mind of knowing that even if the unexpected happens it won't destroy your business's ability to operate.
Do you need pub insurance?
UK law requires you as an employer of at least one employee to have employer's liability insurance. This will cover the compensation due to employees if they are injured at work.
Good to know
In the UK the minimum required coverage for employer's liability insurance is £5 million.
We strongly advise you to have public liability insurance to cover members of the public visiting your pub (that is, anyone not covered by employer's liability insurance). This protection will pay compensation if a member of the public is injured or their property is damaged in your pub.
What does pub insurance cover?
Pub insurance is a mixture of business and building insurance though some policies can be more specific, including loss of license, business interruption and season fluctuations. In the table below we have outlined and explained the usual coverages that come with a pub insurance policy.
| Coverage | What it protects |
|---|---|
| Employer's liability insurance | This covers compensation if an employee is injured or their property is damaged in the pub. |
| Public liability insurance | This covers compensation if a member of the public (that is anyone not covered by employer's liability insurance) is injured or their property is damaged in the pub. |
| Seasonal stock increases | Can increase your coverage by up to 50% during high-traffic periods like Christmas. |
| Loss of license | This covers expenses incurred due to losing a liquor license and in the process of regaining it. |
| Business interruption | This compensates you for loss of income if the pub has to close due to sickness, sanitation problems, murder or suicide. |
Good to know
Pub insurance will only cover you for certain events like pub quizzes, live folk or jazz music and karaoke. For all other types of events, you will need more comprehensive insurance.
What does pub insurance not cover?
Always remember when buying insurance to read your contract twice and thoroughly, you should read the list of exclusions particularly closely to avoid any unpleasant surprises later on. Most basic pub insurance policies, however, will not cover the following.
- War
- Terrorism
- Damage or loss as a result of policyholder's criminal activities
- Damage or loss of equipment at another site
- Injury to an employee at another site
- Legal expenses unrelated to compensation
Watch out!
Typically, pub insurance policies will explicitly exclude interruption to business coverage due to Covid-19. Make sure to check with your broker when purchasing if the policy you are buying excludes it.
How much pub insurance do you need?
Minimum public liability coverage is usually £2 million, however, the amount of pub insurance you require will be dependent on the specifics of your situation. Is your pub in an area with a high risk of burglary or theft? If you own your pub building, is it situated in a flooding zone? Do you rent out rooms in the pub of run a restaurant that serves food twice a day?
Your annual turnover will also affect how much coverage you need. A small pub with only bar staff will need a lower level of coverage than a gastro pub with a full kitchen team.
Good to know
Certain activities taking place in the pub, like live rock music, will mean you need a higher level of coverage. Operating a deep fat fryer on the premises will also push premiums up.
What pub insurance extras are there?
You may want to take out extra coverage in order to best cover your pub and your business. Some insurers include these extras as standard, other insurance providers allow you to buy them as add-ons. We have added the most common pub insurance extra protections in the table below and laid out how they work.
| Coverage | What it protects |
|---|---|
| Hotel cover | This covers guests' personal effects if you run a hotel business in the pub. |
| Legal expenses | This will cover any legal fees that are not due to a compensation claim. If for example the business is being sued. |
| Stock cover | This covers stock such as alcohol and soft drinks in case of damage, loss or theft. |
| Terrorism | Most policies exclude terrorism, however, some insurance companies will allow you to purchase extra coverage if your pub is situated in a high-risk area. |
How much does pub insurance cost?
The cost of your pub insurance will depend on the size of your establishment, the location of your pub and the number of people you employ. The cost will depend also on whether you want the most basic, obligatory level of insurance or whether you require more comprehensive coverage. If you own the physical pub building you will also require building and contents insurance.
To give you an idea of the average cost of pub insurance, we have drawn up an example below.
For example
Tyson runs a pub with an average turnover of £8,000 a week. He chooses to take out £2 million in public liability, £10 million in employers' liability, and £15,000 of stock and contents insurance. He decides not to take out the tenant's insurance or business interruption cover. He would expect to pay between £190 and £220 a week in insurance premiums.
How to find a cheap pub insurance quote?
The best way to find a pub insurance online quote is to use comparison tools. At the top of this page, there is a free-to-use comparison tool which will allow you to compare the pub insurance quotes offered by leading pub insurance companies,
