How can pubs place insurance claims for storm damage?

Damage caused by storms Dudley, Eunice and Franklin has cost pubs tens of thousands​ over the past week but could cost the insurance industry in excess of £200m, according to business insurance company Sector Associates.

The MA​ spoke to Sector Associates managing consultant Steven Swift who advised publicans where to start with insurance claims.

According to Swift, the first step when claiming on insurance after a storm, should be securing and restricting access to the damaged area to keep staff and customers safe.

Following this, licensees should take pictures of any damage caused and make a list detailing exactly what has been damaged and how before contacting insurers or brokers as soon as possible to start the claims process.

Major weather incidents becoming more frequent 

After the claim has been opened, licensees should keep any subsequent receipts for emergency work and repairs conducted as well as any details of lost or cancelled bookings and events for submission to the insurance company. 

Receipts or invoices for additional costs incurred to maintain trading such as, temporary facilities, overtime payments or additional advertising to tell customers if a pub is still open should also be kept and submitted as part of a claim.

Sector Associates managing director Jamie Jenkinson said: “These major weather incidents are becoming more frequent, and insurers, brokers and loss adjusters are getting better in responding.”

The business insurance company stated the most common claims are for storm damage to buildings, flooding, power outages and loss of income if the business is forced to close.

While storm damage to buildings is generally covered, Sector Associates advise issues can arise if the building was suffering from wear and tear or lack of maintenance prior to the incident.

Clean-up operation

Moreover, some policies for hospitality businesses have a stillage condition, meaning in the event of storm or flood incidents, property in a basement or cellar must be kept a certain height off the floor.

For operators who have had to close their pub, business interruption cover could also provide for loss of income or profit and additional costs from the date of the incident, until the business re-opens and returns to pre-loss trading levels.

Coverage for anything kept outside depends on the policy wording but generally, policies exclude storm damage to outdoor ‘moveable property’ unless specifically requested.

Jenkinson added: “We can’t underestimate the damage these storms cause, the distress to customers and the clean-up operation afterwards.”