False insurance claims cost industry £13m

The leisure industry is forking out a massive £13m a year to compensate people making false insurance claims.

An investigation by bar and club insurer Marsh & Co. has reported that half of all the UK's clubs, pubs and bars have been caught out by a customer making a false claim in the last year.

The company found that the most common incident used to lodge a false report is slipping on a spilled drink.

The findings demonstrate just how important CCTV footage is to prove when an incident has not in fact occurred and could save licensees and club owners hundreds of thousands of pounds.

A leading underwriter, specialising in the leisure insurance sector said: "CCTV footage is proving invaluable to the leisure industry as it not only enhances a leisure facilities reputation by promoting a safe environment for the staff and patrons, but deters fraudsters from claiming false incidents, lowering a licensed establishment's insurance premium and the level of excess it has to pay."

Gary Houston, owner of the Shearsby Bath in Leicestershire, says: "As any pub owner will tell you, building and maintaining an establishment's reputation takes a lot of time and effort. Fraudsters prey on pubs that make themselves easy targets by not installing the right equipment. The cost of installing CCTV is irrelevant, compared to the cost of an out of court settlement to protect your pub's reputation."

For further information on how you can protect your premises from fraudulent claims visit www.marshbarandclubinsurance.co.uk.