Our companion guides to what pub insurance is, how much pub insurance costs and what happens without pub insurance set the context. The strategies below focus on reducing the underlying risk and accessing competitive market terms - rather than cutting cover.
Review Your Sums Insured Annually
Underinsurance is the greater danger. Rebuilding costs have risen sharply since 2020 - see our guide to how commercial property insurance quotes are calculated. Pub buildings that have not been revalued in recent years may be significantly underinsured. A lower premium today can be wiped out at claim time by the application of the average clause.
It is worth having a professional reinstatement cost assessment undertaken if one has not been done recently. Your broker can arrange this and help ensure the declared sum insured reflects the true cost of rebuilding.
Invest in Risk Management
Investment in fire suppression, CCTV, intruder alarms, kitchen extraction maintenance and staff training measurably reduces underwriting risk and is reflected in renewal pricing. Documented evidence of these measures should be presented to underwriters at every renewal.
Manage Your Claims Record
A clean five-year claims record is the single most influential factor in renewal pricing. Small claims handled internally rather than through the policy can preserve no-claims discount and avoid loadings at renewal. If a claim is unfairly declined, see our guide on handling a denied pub insurance claim.
Use a Specialist Pub Insurance Broker
A specialist pub insurance broker can access insurers and market segments not available through comparison sites, and present your risk to underwriters in the way that maximises competitive terms.
Adjust Your Policy Excess
Accepting a higher policy excess in exchange for premium reduction can be effective where the business has the cash flow to absorb the increased self-insured retention. It should not be set so high that small but legitimate claims become unaffordable to pursue.
Consolidate Cover Under One Insurer
A specialist pub broker can arrange consolidated cover and ensure the package is coherent and without unintended overlaps or gaps - typically producing better overall terms than several standalone policies.
Provide Accurate and Complete Underwriting Information
- Your annual turnover, split between wet and dry sales
- Whether you operate a kitchen, and the type of cooking equipment used
- The frequency and nature of entertainment activities
- Your staffing levels and wage roll
- The security and fire protection measures in place
- Your claims history for the preceding five years
Don't Reduce Cover at the Expense of Protection
Adequate stock limits. A policy with a stock limit set at average trading levels may be inadequate during seasonal peaks. See our overview of business interruption and income protection for context on indemnity periods.
Excess levels. Accepting an excess that is too high can leave you unable to claim for losses that fall below the threshold. The excess should remain affordable in the context of your cash flow and the size of loss you could realistically absorb.
Peril exclusions. Removing cover for specific perils - such as flood, subsidence, or theft - may reduce the premium but leaves you exposed to those exact risks. Understand what is excluded before agreeing to any restriction.
Misdeclaring sums insured. Understating your reinstatement value, business interruption wage roll, or gross profit to secure a lower premium is a form of underinsurance. At claim time, the average clause may apply, leaving you out of pocket. See our guide to what information you need to get pub insurance for how sums insured should be calculated.
Frequently Asked Questions
What is the cheapest insurance for pub businesses?
The cheapest pub insurance is not necessarily the most cost-effective. Reducing the underlying risk through active risk management and accessing the specialist market through a broker typically produces better long-term value than cutting cover.
Does having CCTV reduce pub insurance costs?
Yes. Documented CCTV, intruder alarms and fire protection systems typically attract premium credits and reduce claims frequency.
Can I reduce my pub insurance costs at renewal?
Yes. Reviewing sums insured, evidencing risk improvements, presenting an improved claims record and shopping the market through a specialist broker can all help.
Should I increase my excess to reduce pub insurance premiums?
It can reduce the premium, but only where the business can absorb the increased self-insured retention without strain. Set the excess at a level that still allows you to claim for material losses.
Does pub insurance get cheaper over time?
Premiums may reduce over time where a pub demonstrates a clean claims record, invests in risk management and maintains accurate sums insured. However, insurance rates are also influenced by market cycles, reinsurance costs and claims inflation - so premiums can increase even with a good record. A specialist broker monitors these factors and helps ensure you are paying a fair premium for the cover you need.
