Pub insurance

A dependable safety net for your pub

Running a pub means balancing hospitality with risk. Pub insurance is a tailored package of business covers designed for licensed premises. It typically pulls together property protection, public and employer liabilities, stock and money cover, and business interruption if you have to close after insured damage. Some pubs also add cyber and professional indemnity where relevant.

In 2025, the trading backdrop is mixed. Rateable values have risen after the post-pandemic recovery, but government caps and reliefs mean most pubs will see much smaller business rates increases than the headline figures. Many will face rises closer to single digits rather than the full jump that rateable value changes suggest. That supports cash flow planning and helps owners decide the right level of cover. At the same time, the pub market is still consolidating, with closures continuing each week, even as total market value edges higher. For operators that remain, robust insurance is part of staying resilient.

Insurance is not a substitute for good risk management. It will not prevent a fire, a data breach, or a slip-and-trip claim. What it can do is transfer a defined slice of financial risk so a single incident does not put the business at stake. This guide explains, in plain English, what pub insurance usually covers, how claims work, where exclusions can apply, and how to choose a level of protection that fits your premises and budget.

Insurance can offer real financial protection, but only when you understand what is covered - and where the gaps are.

What is included and how it typically operates

A pub insurance package is built around core protections. Buildings insurance covers the structure you own against insured perils like fire, storm and flood. Tenants usually insure fixtures and improvements rather than the fabric of the building. Contents insurance covers furniture, kitchen equipment, glassware and electronics. Stock insurance protects consumables and alcohol. Money cover protects cash on the premises within set limits, including safe limits and banking runs.

Public liability covers your legal liability if a customer or visitor is injured or their property is damaged due to your negligence. Employer’s liability is a legal requirement for most UK employers and protects against employee injury or illness claims. Business interruption aims to replace lost gross profit and increased costs of working if you have to close after insured damage, for example after a kitchen fire or escape of water. Choosing an appropriate indemnity period is critical so you have adequate time to repair and regain trade.

Common exclusions include wear and tear, gradual deterioration, lack of maintenance, deliberate acts, or losses outside the policy territory. Theft may require evidence of forcible entry. Flood cover can be restricted in high-risk zones. Cyber incidents are usually excluded unless you buy cyber insurance. Professional advice or events may need specialist covers. Claims usually start with notifying your insurer or broker promptly, preventing further loss, keeping receipts and photos, and cooperating with assessors. For example, if a burst pipe closes the bar for three weeks, a business interruption claim would be based on lost gross profit and extra costs like temporary equipment hire, within policy limits and after the excess.

Who benefits most

Pub insurance is designed for freehouses, tenanted and leased premises, gastropubs, bars and community locals. If you employ staff, welcome customers on site, keep stock and operate a kitchen, you carry risks that standard retail packages may not fully address. Operators offering live music, outdoor seating, function rooms or accommodation also benefit from a policy that accounts for these activities.

If your operation is seasonal or part-time, you still face liability and property risks whenever you open, and you may be more sensitive to interruptions. Conversely, if you run a dry venue with minimal equipment and no employees, a simpler policy might suffice. The goal is not to overbuy but to match cover to realistic exposures. If in doubt, discuss your activities, turnover and assets with a specialist broker who understands pubs.

Picking your level of protection

1. Essential package

   • Buildings or tenants’ improvements, contents and stock with set sums insured.
   • Public liability at lower limits, for example £2 million, and employer’s liability at £10 million as standard where required.
   • Basic business interruption with a shorter indemnity period, for example 12 months.
   • Suitable for smaller wet-led pubs with modest fit-out and straightforward operations.

2. Standard package

   • Higher contents and stock limits, seasonal stock uplift, accidental damage, and money cover with safe limits.
   • Public liability often at £5 million, products liability for food and drink, and employer’s liability.
   • Business interruption with a 18 to 24 month indemnity period to allow for rebuild delays.
   • Loss of licence cover where available and relevant.
   • Good fit for most community pubs and food-led venues.

3. Enhanced package

   • Buildings on a reinstatement basis with professional fees, debris removal and trace and access for leaks.
   • Extended business interruption with denial of access and utilities failure where available.
   • Higher public liability limits, cyber liability add-on, and deterioration of stock for fridges and freezers.
   • Equipment breakdown for boilers, cellar systems and refrigeration.
   • For larger gastropubs, multi-site operators, or premises with entertainment and events.

4. Optional add-ons

   • Cyber insurance for card data, ransomware and system interruption.
   • Goods in transit for deliveries and mobile bars.
   • Personal accident for owners or key staff.
   • Professional indemnity where you provide paid consultancy, events planning or training.
   • Terrorism where required by lenders or leases.

What it costs and why prices vary

Prices are indicative only. Insurers rate on sums insured, turnover, risk controls, claims record and premises specifics. Always check excesses and coverage breadth, not just the headline price.

Who can apply and common requirements

Most UK-registered pubs, whether limited companies, partnerships or sole traders, can apply. Insurers will ask for your legal entity details, trading address, years of operation, licence status, turnover split between wet and food trade, headcount, cooking methods, opening hours, security measures and prior claims history. If you own the building, you will need an accurate rebuild cost, which is different from market value.

Common reasons for decline include undeclared prior bankruptcies, unspent criminal convictions relating to dishonesty, poor fire safety, unsafe electrics, inadequate security where theft is prevalent, or a history of frequent or severe losses. Flood exposure can lead to terms with higher excesses or partial exclusions. Where you process card payments or operate online booking, some insurers may ask about cyber controls such as multi-factor authentication, patching, staff training and secure backups before offering cyber extensions.

From quote to claim - a simple path

1. Gather key facts - entity details, sums insured, turnover and claims history.
2. Request quotes through a broker or comparison journey and share risk controls.
3. Compare cover limits, exclusions, indemnity periods and excesses side by side.
4. Choose a level that fits realistic risks and your cash flow tolerance.
5. Confirm statements are accurate, pay the premium and receive policy documents.
6. Keep records updated - stock levels, equipment, licences and staff training.
7. If something happens, prioritise safety and notify your insurer immediately.
8. Provide evidence, cooperate with loss adjusters and track costs for settlement.

Advantages and trade-offs to weigh

Key checks before you commit

Read the schedule and wording closely. Confirm buildings rebuild cost uses professional estimates and that contents and stock sums reflect peak levels, including seasonal uplift. Make sure the business interruption indemnity period covers realistic rebuild and lead times for bespoke equipment, planning permissions and contractor availability. Check excesses for each section, as escape of water or flood often carry higher excesses. Look for any conditions precedent, for example locked safes for cash or fryer maintenance, which must be met for claims to be valid. Review renewal pricing and indexation so you are not underinsured as values change. Keep documents safe and accessible, including receipts, maintenance logs, electrical and gas certificates, and your premises licence.

Alternatives and related protection

1. Standalone public liability - suitable for small, low-asset, event-only operations.
2. Commercial property only - for landlords insuring the building while tenants cover operations.
3. Cyber insurance standalone - for pubs with heavy digital payment or booking systems.
4. Professional indemnity - if you provide consultancy, training or paid event planning.
5. Business legal expenses - to support contract and employment disputes.

Frequently asked questions

Q: Do I need employer’s liability if I only use casual staff? A: In most cases yes if anyone works for you, paid or unpaid, unless they are genuinely self-employed and carry their own insurance. It is a legal requirement for most employers.

Q: How long should my business interruption indemnity period be? A: Many pubs choose 18 to 24 months. Rebuilds, equipment lead times and licence steps can take longer than expected. Shorter periods cost less but risk running out of cover.

Q: Are flood losses always covered? A: Not always. High-risk locations may have higher excesses, sub-limits or partial exclusions. Speak to your broker about local flood history and resilience measures to improve terms.

Q: Is cyber insurance worth it for a pub? A: If you take card payments or run booking systems, cyber incidents can disrupt trade and create liability. The market is competitive for firms with strong controls, making cover relatively accessible.

Q: What is underinsurance and how do I avoid it? A: Underinsurance is when sums insured are too low. Insurers may apply average and reduce claims. Use professional rebuild assessments, review stock peaks and update figures annually.

Q: Will my premium rise if I make a claim? A: It can. Insurers consider claim frequency and severity at renewal. Good risk improvements after a loss can help moderate the impact and keep terms competitive.

What the current market means for you

Operating conditions are shifting. Rateable value changes are tempered by government caps that limit many pubs’ rates increases to much smaller rises than feared, easing short-term pressure. The pub market value is growing modestly even as outlet numbers decline, which heightens competition and puts a premium on reliable service and continuity. Commercial lines insurers report improved performance, which can support stable pricing and broader cover, while cyber and professional indemnity markets remain competitive for businesses with strong risk controls. That combination means well-managed pubs can often secure comprehensive cover at reasonable terms in 2025.

Next steps

Take stock of your sums insured, risk controls and trading plans for the next 12 to 24 months. Compare a few quotes side by side, focusing on indemnity periods, exclusions and excesses, not just price. If you are unsure, speak with a specialist broker who understands pubs and can explain options in plain English. You stay in control throughout.

Disclaimer

This guide provides general information only and is not personal advice. Policy terms, limits, exclusions and pricing vary by insurer and individual circumstances. Always read your documents carefully and seek professional guidance if you need tailored recommendations.