Running a pub in the UK is a rewarding venture, but it comes with a unique set of risks. From a slip on a wet floor to an unexpected closure, having the right insurance is your most critical defence. Protecting your business, your team, and your customers isn’t just good practice – it’s a legal and financial necessity.
Legally Required Insurance
For any public house that employs staff, even on a part-time or temporary basis, one type of insurance is mandatory by law:
- Employers’ Liability Insurance: This is a legal requirement under the Employers’ Liability (Compulsory Insurance) Act 1969. It protects your business against claims from employees who may be injured or fall ill as a result of their work at the pub.
- Minimum Cover: The legal requirement for cover is £5 million, though most insurers offer £10 million as standard.
- Consequences: Failing to have valid Employers Liability insurance can lead to significant daily fines and prosecution.
Highly Recommended Insurance for Public Houses
Beyond the legal minimum, these policies are crucial for the financial security and smooth operation of your pub.
- Public Liability Insurance: Arguably the most critical cover for any pub. It protects you if a customer, supplier, or any other member of the public who isare injured or whose property is damaged while on your premises. You will find that this cover is typically required by licensinglicencing authorities. Given the high footfall, with potential for slips, trips, falls, or other accidents, this insurance is indispensable.
- Buildings & Contents Insurance: This protects the physical heart of your business.
- Buildings Cover: Protects the structure of the premises against risks like fire, flood, and subsidence. If you lease the premises, your landlord may be responsible for this, but it is vital to check your lease agreement. This will be required by lenders if the property is mortgaged.
- Contents Insurance: Covers all your internal assets from bar fixtures and kitchen equipment to furniture and stock from damage or theft.
- Product Liability Insurance: Essential for any business serving food and drink. This covers you against claims of illness or injury resulting from the products you sell, such as food poisoning.
- Loss of Licence Insurance: A vital safety net unique to licensed premises. It provides financial compensation if your alcohol licence is revoked or not renewed due to circumstances beyond your control, protecting your business from a catastrophic loss of income.
- Business Interruption Insurance: What would happen if a fire or flood forced you to close your door for months? This insurance is your answer. It covers your lost income and fixed overheads during the closure period, ensuring you get back on your feet.
- Stock Insurance: The value of your stock, including alcohol, food, and other goods, in your cellar and kitchen is substantial. This policy protects that investment against damage, theft or destruction. Many policies can be extended to include deterioration of stock if a fridge or freezer fails (e.g., from a power cut).
Additional Insurance to Consider
Depending on the specific nature of your pub and its operations, you may also want to consider the following:
- Money Cover: Protects cash held on the premises, in a safe, or in transit to the bank.
- Legal Expenses Insurance: Covers the legal costs for disputes related to employment, tax or compliance .
- Fidelity Guarantee Insurance: Protects your business against financial loss due to employee dishonesty or fraud.
- Goods in Transit Insurance: Covers stock and other goods while they are being transported to or from your premises.
- Terrorism Insurance: While often excluded from standard policies, this can be purchased as a separate cover.
Tips
- Many insurers offer pub-specific insurance packages combining these covers.
- You may need to show proof of some cover types (e.g. employer’s liability) during inspections or licensing reviews.
- Check local licensing authority requirements — some areas may have specific insurance expectations.
Your Next Step: Get Expert Advice
While Employers’ Liability Insurance is the only legally required insurance, a robust policy for a pub must also include Public Liability, Buildings and Contents, Product Liability, Loss of Licence, and Business Interruption cover.
The single most important step you can take is to speak with a specialist insurance broker. An expert that understands the unique risks of the licenced trade, will ensure you have the right level of cover for your specific needs, leaving you free to do what you do best, run your pub.
Insurance with Cofton Insurance Services
We offer retail insurance covering all types of personal and small business insurance solutions, inclding public house insurance, tailored to your specific needs. Get in touch with our team for more information and advice.