Why Pub Insurance Matters

Running a public house comes with a unique set of risks. From fire, theft, malicious damage and broken equipment to legal claims and business interruption, most pubs face daily challenges that can affect their ability to trade. Having the right insurance for pubs is more than a precaution. It provides essential financial protection for your premises, employees and customers, while helping to protect your long-term profitability.

A comprehensive pub insurance policy is typically a package of specialist business insurance designed to cover the specific risks associated with a licensed pub business. Depending on your requirements, pub insurance cover can include:

• Buildings and contents insurance – protecting the premises, fixtures, fittings, stock and equipment if they are damaged, lost or stolen. Buildings insurance covers the structure of the property, while contents insurance protects the items inside.
• Public liability insurance – protection if customers or visitors suffer injury or property damage, such as from a wet floor or accident within the bar, beer garden or outdoor areas.
• Employers liability insurance – a legal requirement for pubs employing staff. Employers liability cover protects against compensation claims from full-time, part-time and temporary employees.
• Product liability insurance – cover for claims arising from food, alcoholic drinks or soft drinks sold by your business.
• Business interruption insurance – helping replace lost revenue and gross profit if the pub cannot trade because of an insured event such as fire, flooding, accidental damage or a failed power supply.

For licensed premises, the right insurance cover helps you continue trading, maintain your ability to sell alcohol, protect your alcohol licence, and recover more quickly from unforeseen 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 buildings insurance and premises insurance arrangements.
• Explain how insurance costs are calculated and communicated.
• Honour a tenant’s right to find a suitable and comparable business insurance policy at a lower cost.

If a tied tenant identifies public house insurance or pub insurance policies that are suitable and comparable, the pub company must either adopt the alternative 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 for pubs and premises insurance charges were explained. More recently, concerns were raised that some pub-owning businesses were rejecting policies because they were not considered “better” or “equivalent”.

The PCA reinforced that the legal test is whether the alternative insurance cover is suitable and comparable, rather than identical. This is particularly important because many tenants remain unaware of their rights when challenging their pub insurance cost, potentially paying more than necessary for cover.

By increasing awareness of Regulation 46, the PCA aims to improve transparency and ensure public house insurance arrangements remain fair across England and Wales.

What Pub Insurance Should Cover

When comparing pub insurance providers, landlords should ensure they have all the cover required for their premises, employees and day-to-day business activities.

A typical pub insurance policy may include:

• Contents insurance for furniture, fixtures, gaming machines, tills, stock and specialist equipment.
• Stock insurance covering food stocks, beers, wines, spirits and other products held on site.
• Buildings insurance covering structural damage to the property from events such as fire, storms, flooding or malicious damage.
• Public liability insurance providing cover if customers suffer injury or their property is damaged while visiting the pub.
• Employers liability insurance protecting businesses against employee injury claims and meeting the statutory legal requirement.
• Product liability insurance covering claims linked to food, drink and products supplied to customers.
• Business interruption insurance and business interruption cover, replacing lost income following insured events and helping meet ongoing costs during the indemnity period.

Many policies also offer optional cover and additional cover, including:

• Loss of licence and licence insurance.
• Protection for a liquor licence or alcohol licence.
• Transit cover for stock and equipment.
• Cover for contactless payments and money held on site.
• Legal expenses insurance covering legal costs, legal fees and employment disputes.
• Entertainment cover for pubs hosting live entertainment and live events.

Choosing the Right Insurance for Your Pub

Every pub is different. Whether you operate a traditional local, gastropub, sports bar or food-led venue, your business insurance should reflect the specific risks and unique risks associated with your operation.

Several factors influence the right pub insurance solution, including:

• Opening hours.
• Number of employees.
• Whether you host live entertainment.
• The value of your buildings, contents and stock.
• Location and customer footfall.
• Additional equipment used within the business.

A specialist provider of business insurance designed for pubs will understand the potential risks faced by licensed premises, from underage drinkers and customer injuries to stock losses and interrupted trading.

The right insurer should offer:

• Clear explanations of your insurance cover.
• Flexible options for additional cover.
• Access to an experienced claims team when you need support.
• Protection tailored to your premises, business activities and customers.

At Herbert Lewis Williams & Associates, we understand the importance of specialist business insurance that protects pubs against the challenges faced by today’s hospitality industry.

Business Insurance for Pubs

Insurance for pubs is not simply about meeting obligations. It is about protecting your investment, employees, customers and future income from events that could otherwise have a significant financial impact.

Whether you’re looking for public liability insurance, employers liability insurance, buildings insurance, contents insurance, stock insurance, entertainment cover, licence cover or business interruption insurance, choosing the right policy can help safeguard your business against a wide range of risks.

With comprehensive pub insurance cover in place, supported by an experienced claims team, pub owners can focus on running a successful pub business knowing they have the protection required should the unexpected happen.