Historically there was some clear definitions of what insurers considered either a Public House, or a Night Club, and there was and still is big differences in premiums being quoted. But today with Pub opening hours extended there is sometimes little difference to separate these types of business, so does it matter what we call the trade when asking insurers for cover these days? Yes it does!
There are a few things insurers are interested in, to rate the business correctly, and whilst opening hours can no longer be used to define these business types there are a few other questions which will need answering. Such as, is there a defined dance floor area? This on its own doesn’t necessarily pigeon hole the trade as being a Nightclub but it’s the first clue for an insurer. The next is whether there is an admission charge for entrance, and again this on its own may not dictate that the premises should be insured as a Nightclub, but we’ll start to see more insurers fading away from charging lesser premiums for it being a Public House. And then lastly the question of do they have security staff will come up, and again this information on its own may not pinpoint the trade but coupled with the other questions mentioned here and you’ll see the insurance market decide the business trade for you.
So why is there a huge difference in insurance costs for pubs and nightclubs? And the obvious answer is claims. We see many more claims from Nightclubs than we do from Pubs, and for all the obvious reasons, such as very ‘high spirited’ clients engaging in physical contact with other clientele and security staff. The number of slips, trips and falls is excessive when you add alcohol. Then patrons being unhappy about being manhandled off the premises can often result in claims of assault and injury, which even if the security staff are contracted in from outside can still pose problems for the premises owners. It’s no secret that the bulk of premiums charged by insurers for a Nightclub or Late Licence Venue comes about from the Liability Section of cover.
Can you restrict the activities of a Venue, to be rated lower for insurance premiums? That’s perhaps not very easy, but it’s important to present your business to insurers accurately and professionally, something we do all the time at AIC for our clients. And we can certainly steer you to lower premiums if there’s an opportunity. Call our office on 01442 242400 or contact us here today.