Insurance advice for the pub and hospitality industry

Aaron Thorpe is Commercial Manager at Preston Insurance Brokers LLP. He joined the company in 2014 and has moved up through the business to Commercial Manager, a role that includes developing and delivering industry campaigns and schemes. Here Aaron talks about his latest campaign, Licensed Trades. 

Why do you feel special attention should be paid to the licensed trade/hospitality industry? 

As the owner of a hotel, restaurant, brewery, pub, bar or nightclub, the risks faced can sometimes seem endless, especially with the threats of crime, violence, fire and more commonly slips & trips. These risks are intensified by long hours, late closing times, crowded premises and intoxicated customers.  

What are the consequences of this? 

Often limited time is spent on insurance reviews, with a lack of cover knowledge, misjudgement of sums insured, provision of outdated information and not keeping insurers updated with the evolvement of the business. A wide number of businesses are consequently under insured, trade outside of their cover or hold unsuitable insurance.  

How is the industry changing and what implications does this hold for insurance? 

The licensed trade industry is ever evolving to stay current to boost profits. For example, many pubs which serve food now ‘franchise’ out their kitchens, allowing third party companies to operate these. This has rendered many off-the-shelf insurance policies inappropriate, unable to accommodate numerous limited companies operating from one site, with shared facilities. However, moving away from the typical packaged pub insurance policy and toward a bespoke policy specific to their activities appropriate cover and competitive rates can be achieved.  

What are your top tips for a client to remain compliant, avoid claims and have the appropriate insurance? 

If you are unsure on sums insured, use experts to evaluate them. Update your broker/insurer with changes to your business throughout the year. Ensure that the information provided for quotes is up to date and includes future growth. Review your Business Interruption cover with your broker/insurer making sure the basis of cover and indemnity period is appropriate (most common cover for underinsurance). Take the time to read and understand your policy cover and endorsements – anything you don’t understand or cannot comply with question! Regularly review Health & Safety Policies and Procedures, Risk Assessments, Cleaning Procedures, Staff Training and ensure equipment is serviced under a maintenance programme (these all build into your typical Risk Management Procedures). Last but by no mean least…..USE A BROKER! 

For more information on how Aaron can help your licensed trade, contact him on 0333 222 1191, 07540 314 891 or aaron@prestonib.co.uk