Running a pub business is totally different from running any other business. There are major differences you have to be aware of such as loss of alcohol license, property damage, staff injuries and security. These points will dramatically increase your insurance cost.
Unlike normal business insurances, pub or club insurances are specifically created to cater for the risks involved with such venues. Dealing with the public and serving alcoholic beverages creates an immediate risk factor, which will be reflected in your insurance policy.
An insurance policy for your pub will usually include Employer liability, public liability, contents insurance, theft of property and cash, personal assaults, loss of alcohol license. This is critical for your business to succeed. Try to comply with your particular alcoholic license regulations and avoid penalties including a loss of license. Keeping your license is vital to the success of your business. A pub is worthless if they lose the right to serve alcoholic beverages. As silly as these sounds, it has happened. A correct insurance policy in place will soften the blow if this happens to your pub.
When you have found a pub for sale that you are interested in, make sure the current insurance policy is up to scratch and if not, then you need to make sure you update it ASAP.
A basic insurance policy should include cover on the pub kitchen, function room facilities, accommodation, children's play areas, etc. All of these have a high risk involved and will definitely affect your policy.
Due to the nature of your business, accidental property damage and personal damage is hard to avoid. Being covered for all property including stock is critical.
There are additional coverage's that can be added to any policy such as computer breakdowns, weather (such as floods, etc) and any other custom insurance policy.
Once you have found a pub for sale that you feel is the right pub for you, it is time to make the next move, which is to ask the current owner to see the existing insurance policy. This could determine the asking price of the business, and if the policy does not cover certain aspects of running a pub, then you need to ask questions.
Seeking the advice and help from a professional insurance broker is a good start. Always get a few quotes and compare prices and inclusions. This will see you get the best policy and price available.
It would be safe to say that you would not drive a motor vehicle without insurance, so whatever you do, always make sure you have the best business insurance for your business.
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