Hospitality venue insurance: the full cover checklist

The cover stack, top to bottom

Property and contents. Buildings (if owned), tenant’s improvements (if leased), fixtures, kit and stock — at reinstatement values, not guesses. Kitchens mean fire conditions: extraction cleaning, deep-fat fryer clauses and alarm requirements are warranties that bite at claim time.

Business interruption. A venue that closes earns nothing while rent and key staff costs continue. The indemnity period should reflect a real fit-out and re-licensing timeline plus the slow return of trade — twelve months is rarely enough for a serious loss.

Public liability. The core exposure: slips, falls, glass, crowd incidents, injuries at the door. Limits should reflect capacity on the busiest night, and every activity — live music, DJs, dancing, door security, outside areas, functions — needs to be declared, because undisclosed activities are where cover arguments start.

Employers’ liability. Compulsory, and in hospitality the staff picture changes weekly: casuals, agency staff and part-timers all count. Declare the real wage roll and headcount pattern.

Licensing-linked covers. Loss-of-licence cover protects against the drop in value and income if the premises licence is lost or curtailed through no fault of the insured — for a wet-led business this is existential and routinely overlooked. Where door staff are employed, liability arising from their actions must sit somewhere: in-house teams belong on your own liability covers with the activity declared; contracted security should evidence their own insurance, with the contract clear on who answers for what.

Terrorism. Excluded from standard property and BI covers; bought back via the government-backstopped scheme through participating insurers or standalone. For venues where crowds gather, the exclusion deserves a conscious decision rather than a default — see our terrorism insurance page.

The supporting cast. Money cover for cash on site and in transit; assault extensions for staff; deterioration of stock for cellars and cold rooms; hired-in equipment; cyber for booking systems and card data. Hotels add guests’ effects and wider liability. None of these carries the headline premium; several carry the claim you actually make.

The new protect duty context

Sizeable venues have a new piece of regulatory context: the protect duty known as Martyn’s Law, which received royal assent in 2025 and is expected in force after an implementation period of at least two years. It will apply to premises where 200 or more people including staff may reasonably be expected at once — a threshold that catches a great many pubs, clubs and music venues — requiring notification to the regulator and public protection procedures, with heavier duties from 800 people. It is not yet in force and precise dates should be checked against the current commencement position. The insurance point is twofold: the honest capacity assessment the duty requires is the same number your liability programme should be built on, and documented procedures will become central evidence of reasonable care if an incident ever produces claims. Compliance does not buy insurance, and insurance does not deliver compliance — a venue in scope needs both.

Why venue insurance gets declined — and what to do about it

Hospitality is a sector where some insurers simply do not play, and others rate hard. The usual flags: late-night trading, particularly past midnight; wet-led income — a high proportion of turnover from alcohol rather than food or rooms; entertainment and dancing; door security incidents; claims history; and unoccupancy or short trading history. None of these makes a venue uninsurable. They make it a risk that needs placing with the right market, described properly: food-to-wet split, closing times by night, capacity, door arrangements, incident log, CCTV, refurbishment dates. A venue declined on a two-line description is often perfectly placeable on a full one — which is why we would always rather start with a phone call than a form.

The renewal discipline

Venues change faster than their policies: a new function room, later hours, a festival in the car park, a kitchen refit. Each is a material change an insurer should hear about when it happens, not at claim time. A once-a-year walk-through of the checklist above — values, activities, hours, staffing, licence conditions — against the schedule is the cheapest risk management a venue can do.

Frequently asked questions

Is terrorism cover included in a standard pub or venue policy?

No — standard property and business interruption covers exclude terrorism. It is bought back either through the government-backstopped reinsurance scheme via participating insurers or in the standalone market. For premises where crowds gather, leaving the exclusion in place should be a conscious decision, not a default.

Does the new 200-person threshold include staff?

Yes. The protect duty's standard tier applies where 200 or more individuals, including staff, may reasonably be expected to be present at the same time, with enhanced duties from 800. The Act is not yet in force — check the current commencement position — but the capacity assessment is worth doing now, and it should match the basis of your liability cover.

What does loss-of-licence insurance actually cover?

It responds to the financial consequences — typically loss of income and depreciation in value — where the premises licence is lost, suspended or curtailed through no fault of the policyholder, subject to the policy's conditions. It does not cover a licence lost through the insured's own breaches, which is one more commercial reason licence conditions deserve respect.

Why was our venue declined or quoted so high?

Commonly some combination of late-night hours, wet-led turnover, entertainment, door incidents, claims history or thin information. Declines often say more about the presentation and the market approached than the venue. A full submission — trading split, hours, capacity, security arrangements, incident log — placed with insurers who actually write venues usually changes the answer.

We host occasional big events — ticketed nights, festivals. Are they covered?

Only if declared. One-off or recurring events can change the risk materially — capacity, outdoor space, temporary structures, external promoters — and may need specific extension or separate event cover, including cancellation if real money is at stake. Tell your broker before the event, and get the promoter's own insurance evidenced too.

Apex Insurance Brokers Limited is authorised and regulated by the Financial Conduct Authority (FRN 724952). This page is general information, not advice on a specific policy.