Longer hours may not mean insurance hike, says broker

Concerns over pub property insurance have been raised again after a leading insurance broker claimed that extended opening hours may not mean a hike in premiums.

It had been feared that licensees could face problems insuring their properties when the new Licensing Act comes into force.

Last month the leading financial and insurance agent for the sector, Christie First, said that some companies may be reluctant to insure for building, contents and liability insurance because of extended hours. Some licensees could even find cover withdrawn if they decide to extend their hours, the agent argues.

However, insurance broker Hill House Hammond Business says that it does not believe that extended opening hours will mean spiralling insurance premiums.

Paul Williams, divisional director of the company, believes that insurers could take the view that insurance risks may reduce if it means staff will be staying on the premises longer as opening hours increase.

"Publicans should be prepared to shop around to ensure they obtain the correct cover they need for their business," he said.

"While some insurers may consider reform in licensing laws as a potential risk, we take the view that publicans ought not to be punished as a result of licensing reform."

But Tony Payne, chief executive of the Federation of Licensed Victuallers' Associations, said: "I would be surprised if the prices did not go up, as longer opening hours means a longer time where incidents could take place.

"As for staff being in the premises for longer, most licensees live on the premises anyway.

"We are having a meeting with our brokers and we will talk about the effect it will have on their business."

Some insurance companies are often reluctant to offer insurance to pubs and bars that open late as they consider them to be operating as a nightclub rather then a pub.

Experts believe that pubs with extended opening hours could be considered higher risk for insurers as they will face bigger claims due to malicious damage costs.

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