Pubcos urged: 'come clean on insurance'

Guild of Master Victuallers calls for fairer insurance deal for pubco licensees

Members of the Guild of Master Victuallers (GMV) have called for a fairer deal for licensees from pubcos on premises insurance.

Brian Rees, speaking at the GMV's annual conference, claimed that some pubcos charge up to a third more for premises insurance than they should. Rees told the conference: "It's an absolute liberty that pubcos are allowed to get away with this. It's yet another thing that pubcos are trying to make money on.

"We need to call for more clarity - if they're really not making any money from it, then they need to prove it. In addition, if licensees can find cheaper insurance elsewhere, it's only fair that they should be allowed to follow it up - they should be allowed to look for a better deal."

It is common practice that all leased and tenanted pub premises are insured by the freehold-owner, who then charges the occupier for the premium. The packages that pubcos use tend to have high excesses, which stops licensees making smaller claims, Rees claimed.

"Licensees can't claim for things like minor roof damage and broken windows because it's not worth it, once you take the excess into account," he said. "I suspect insurance is one of the big money-makers for the pubcos - with so few claims made, they must really benefit from their no-claims bonus."

Rees, who's just retired, has been in the trade for 30 years. His last pub was the Lord Palmerston in Deptford, London, a Punch Taverns leasehold. He is still involved in negotiating better deals for licensees with pubcos and is an active member of various LVAs and the BII.

Rees explained: "The issues have been known to me for some time, but it was sparked off by complaints from GMV licensees. Some of our members have looked into getting premises insurance elsewhere and every one of them has found there are savings

to be made - all we want is fairness."

Trade consultant Phil Dixon said: "What's always baffled me and my pocket calculator is how small pub companies, with fewer than 200 pubs, can get a better deal than major pubcos. It's a pretty murky area - pubcos need to show more transparency."

A motion was carried at the end of the conference to take the issue to the National Parliamentary Committee.