Why Pub Insurance Matters

Running a public house comes with a unique set of risks. From fire and theft to broken equipment, legal claims, and business interruption, pubs face everyday risks that can seriously affect business income. Having the right insurance for pubs is not just a legal requirement, it’s vital protection for your employees, customers, and livelihood.

Pub insurance cover often includes:

• Buildings and contents insurance – protecting the premises, stock, and equipment if damaged, lost, or stolen.
• Public liability insurance – cover if a customer is injured on your premises, such as in the bar or beer garden.
• Employers liability insurance – a legal requirement if you employ staff, whether full-time or temporary staff.
• Product liability insurance – protection against claims linked to alcoholic and soft drinks, meals, or other items sold on site.
• Business interruption insurance – to cover lost business income if you’re forced to close after events like fire, flood, or accidental damage.

With licensed premises, the right insurance cover ensures you can continue to sell alcohol and soft drinks, protect your liquor licence, and safeguard against financial loss from unexpected events.

Regulation 46 and Insurance Transparency for Public Houses

In March 2025, the Pubs Code Adjudicator (PCA) wrote to all pub-owning businesses reminding them of their responsibilities under Regulation 46 of the Pubs Code. This directly affects tied tenants who pay for pub insurance cover through their pub company.

The regulation requires pub-owning businesses to:

• Provide full details of their premises insurance arrangements.
• Explain how insurance costs are calculated.
• Honour a tenant’s right to find a “suitable and comparable” policy at a lower cost.

If a tied tenant finds a comparable business insurance policy, the pub company must either adopt that policy or agree not to charge the tenant the difference.

The PCA’s Findings on Pub Insurance

The PCA’s 2024 review of Star Pubs & Bars found improvements were needed in how insurance charges were explained. More recently, the regulator raised concerns that some companies were rejecting policies on the basis they weren’t “better” or “equivalent.”

The PCA reminded pub companies that the legal test is whether a policy is suitable and comparable, not identical. This matters because just 56% of tenants in the 2024 survey knew they had the right to challenge insurance cover costs, meaning many may have been paying more than necessary.

By promoting awareness, the PCA aims to ensure public house insurance is fair, transparent, and consistent across England and Wales.

What Pub Insurance Should Cover

When comparing pub insurance policies, landlords should check for comprehensive cover across all business activities. Policies can include:

• Contents insurance for stock, including alcoholic and soft drinks.
• Stock insurance for items stored on-site.
• Buildings cover for the fabric of the premises.
• Public liability cover in the event of injury or property damaged.
• Employers liability for permanent and temporary staff.
• Product liability for food, beer, and soft drinks served.
• Business interruption insurance to protect business income after fire, flood, theft, or broken equipment.

Additional cover can also extend to legal costs, protection of money kept on site, and safeguarding your liquor licence.

Choosing the Right Insurance for Your Pub

Every public house is different. Whether you run a traditional pub, a gastropub, or a pub-restaurant with a beer garden, your business insurance needs should reflect your team, property, and customers.

The right insurer should offer:

• Clear explanations of insurance cover.
• Options for additional cover (such as accidental damage or stock insurance).
• Confidence that your business activities are fully protected.

At Herbert Lewis Williams & Associates, we understand the importance of business insurance designed to meet the specific risks of licensed premises.

Business Insurance for Pubs

Insurance for pubs isn’t just about ticking a box. It’s about making sure your public house, employees, and customers are protected from risks that could disrupt your livelihood. With Regulation 46 in force, tied tenants also have the right to challenge costs and secure fairer insurance terms.

By choosing the right pub insurance cover – including public liability, employers liability, product liability, and business interruption – you can focus on running your business with peace of mind.