Tips and advice - Licensed trade insurance
Risky business... "An accident is nobody's fault", right?
Not necessarily... if a member of the public, or an employee, is
injured at your licensed premises and it is proven that you, or
your business, is at fault, any damages payable could fall
entirely, or in part, to you, as the licensee, as in the examples
below:
Example 1
A member of staff at the policyholder's pub was making his way
through the premises to try to calm a situation where two customers
were arguing. He slipped over on some spilt liquid in the bar area
and hit his face on a table, causing a fractured cheekbone. His
employer's policy paid out approximately £6,000.
Did you know?
In the UK, it is against the law to trade without employers'
liability insurance if you have staff - whether those staff are
full-time, part-time, casual, permanent or temporary. You could be
fined up to £2,500 for each day you do not have this cover in place
by the Health and Safety Executive.
Example 2
A policyholder employed a manager to live in and run her pub and
the manager brought his pet dog to the pub with him. Less than a
week after moving in, the dog bit a customer leaving significant
injuries. The policyholder was held responsible for the actions of
her employee and the claim was settled at almost £10,000.
Did you know?
Public liability insurance is not a legal requirement, however
any significant claim made by a visitor to your premises could
bankrupt your business if you are found to be at fault and do not
have this cover in place.
Whilst the risk of injury to the public is increased where
alcohol is consumed, some activities, ancillary to the licensed
trade, carry an even higher risk and you should always disclose
these to your insurers. Not only should they be able to offer you
help and advice to minimise the risk, but some companies may refuse
to pick up the bill for hazards they were not made aware of. Some
of these activities can include:
- Dance floors
- Indoor and outdoor children's play equipment
- Bouncy castles
- Door staff
- Firework displays and other one off events
In most instances, your insurers will extend your existing
policy to cover the new circumstances, but they may charge an
additional sum of money to do this.
It can be a distressing experience to receive a solicitor's
letter alleging that your actions have caused someone to suffer
injury, but as long as you have adequate policy cover, your
insurers can deal with the claim for you. Should you receive such
correspondence, you should forward the letter to your insurance
company immediately and crucially, do not enter into any discussion
with either the claimant or their solicitors. Your insurers will
then handle things from there.
You can of course take steps to minimise the risk of incurring
claims of this nature, such as:
- Carrying out thorough and regular risk assessments
- Keep health and safety records up to date
- Ensure your accident book is always completed
- Train your staff in good practise
Not only will measures such as these help to stop claims being
made, but good housekeeping practices may also mean that your
insurers are in a better position to successfully defend claims on
your behalf. Further information on this and risk management can be
found at Inn Compliance.
We are proud of our industry knowledge and experience at TRS
Great Yarmouth. As well as offering comprehensive and flexible
licensed trade insurance policies, we are happy to give friendly
help and advice whenever you need it. Call 0800 731
7795 to speak to a member of our team.