Pubs hit by flooding must act to minimise disruption
The British Hospitality Association has said that the Government must act now to set a path to recovery for publicans as the effects of the ongoing flooding and winter storms are ‘potentially catastrophic’ for the UK hospitality industry.
The impact of the flooding is likely to include damage to the building itself, damage to fixtures and fittings, loss of or damage to stock and interruption to the business and therefore a downturn in profits. In addition, many public houses are also home for the publican and their family.
Complex
This potentially presents a complex background in relation to the insurance arrangements that may exist in that there may be a number of different insurers involved. Commonly publicans will occupy the premises under a lease and therefore the buildings insurance and responsibility for repair of the building will remain with the owner of the building.
The publican is likely to be responsible for insuring the fixtures and fittings and contents, including stock, as part of the business. There may be separate insurers in relation to the publican’s family accommodation and the family’s personal effects, including any vehicles.
This potentially adds to the burden on the publican, in already difficult circumstances, in ensuring that any claims are dealt with as quickly as possible enabling the property to be reinstated and to allow the business to resume or continue trading.
Documentation
There are steps that may be taken to assist in seeking to ensure this process is completed as quickly as possible. Early contact should be made with all insurers and the property owner’s representatives. Details should be kept of the extent of the damage including photographs or video footage where possible.
Also - all available documents should be collated to evidence the value of damaged items and accounts obtained to assist in calculating any claim for loss of trade/profits.
All documentation should be provided to insurers or their loss adjusters as quickly as possible and contact maintained with all insurers and their representatives to ensure a co-ordinated and efficient approach so that the repair and replacement of damaged items can be actioned as quickly as possible to minimise disruption to the business and therefore loss of trade.
Grants
Publicans should also be aware of their potential eligibility for the recently announced government support packages which includes a ‘Repair and renew’ grant for affected homeowners and businesses which may provide up to £5,000 in financial support for householders and businesses to pay for repairs which improve a property’s ability to withstand future flooding.
In addition, affected businesses will be able to apply to their local authority to get business rates relief for up to three months.
HMRC have also to set up a new hotline for those affected by flooding who may have difficulties in meeting their tax liabilities whereby they will look to offer up to three months additional time to affected businesses to pay their tax liabilities which will include VAT, PAYE and corporation tax.
In addition, £750m has been pledged by the major banks to provide financial support to businesses and individual customers affected by the floods and the package is intended to include a mixture of repayment holidays, reduced or waived fees, loan extensions and increased flexibility of terms and additional specialist support.
Publicans should ensure that they familiarise themselves with the additional support and help that may be on offer to them to assist in their recovery.
Sandra Jones is a partner in the commercial insurance team at national law firm Weightmans
