Insurance News Archive
Pubs under fire for insurance costs
Pub companies may be taking huge profits on the buildings insurance premiums that they charge for licensees, it has been reported.
Figures show that the gap between rates paid by freehouse operators and tied lessees could average between 20 per cent and 30 per cent, reports the Morning Advertiser.
David Jones, a trade accountant, reveals a study of total insurance payments given out by 12 tied lessees in a year averaged £2,785 compared to four freehouse operators whose entire insurance costs amounted to £1,770.
"Any freetrader shopping around could doubtless find much cheaper premiums," Mr Jones told the newspaper.
Mr Jones went on to say that the statistics relate to dual policy totals comprising buildings and contents insurance, which is itemised in individual pub profit and loss accounts.
"Any freetrader shopping around could doubtless find much cheaper premiums, but the policy may well not have the same comprehensive cover as a leased premium," Mr Jones concluded.
Overall, research shows that leased pub premiums were up 30 per cent ahead of free trade rates.
04 May 2006