Analyst Defaqto examines the features of the cover offered for pub insurance from a selection of products

With over 40,000 pubs in the UK, one would think that many insurers would be chasing a share of this sizeable customer base. Surprisingly there are not a great number of insurers actively targeting this market. Many insurers do not even have a specific pub package policy. NFU and Norwich Union are major exceptions - they simply use their shops product slightly tailored to fit the needs of publicans.

Most policies aimed at this sector consist of a core of standard covers - such as contents (including glass and money cover) public and employers' liability, and business interruption. Many policies offer cover on an "all risks" basis as standard. Optional covers are typically available for buildings, frozen food, glass and loss of licence cover. Excesses now typically start at £250.

Public liability limits are now around £2m as standard, with most insurers allowing higher limits to be selected by endorsement to the policy. Standard limits for money appear to start at £3,000, with some companies such as Zurich offering as much as £7,500 as a standard limit.

Business interruption is mainly on a loss of gross profit basis, with standard limits of £600,000 to £1m available, and higher amounts on request. Cover can usually extend to brewers'/suppliers' premises and is typically for a period of 24 to 36 months.

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