Licensee slams Punch Taverns' insurance matching promise as "dishonest"
Matt Scriven, managing director of the six-strong Bitters ’n’ Twisted Venues, described trying to get a like-for-like quote on his insurance for the Rose Villa Tavern in Hockley, Birmingham, as a “fruitless process”.
The premium for the pub is currently £3,368.95, but an insurance broker informed Scriven he was unable to get comparable quotes as the levels of cover offered by Punch could not be matched.
Punch’s code of practice says “existing partners will be given the opportunity to price match their insurance premium”, which is in line with the Industry Framework Code.
However, when Scriven asked Punch to provide details of companies that other tenants had successfully price-matched against, he was told that information was not possible under Financial Services Authority (FSA) regulations.
“I was very surprised that the process was as fruitless and de-motivating as it was,” said Scriven. “It’s a very poor way to treat people who are meant to be partners.
“I am surprised that this dishonesty has never been brought up as an issue because I think Punch is making a lot of money from building insurance.”
Simon Clarke of Fair Pint admitted it is almost impossible for tenants to get a like-for-like quote on building insurance because the pub companies’ policies cover their whole estate.
“It is an empty promise,” he said. “The truth is that it almost can’t happen.”
Punch said that some of its tenants have had their premiums reduced after obtaining like-for-like quotes, adding that most price matches that fail are because the insurer has key exclusions and limitations in their policy that are often not clear.
A spokesperson said: “As the property owner Punch needs to ensure its pubs have the most appropriate cover to reflect its risk of loss, not that level considered appropriate by third parties.
"While our policy seeks to protect both Punch and the partner with comprehensive cover, under FSA rules we cannot disclose those insurance companies providing the matched quotes.”
Recently JD Wetherspoon chairman Tim Martin asked around 400 of the firm’s landlords to reduce its insurance costs, after discovering that it could save between 25% and 75% by securing its own cover.
