A Practical Insurance Review Checklist for Landlords, Pubcos and Tenant Operators

Could Your Pub Keep Trading After a Fire, Flood, Equipment Failure or Supplier Issue?

Read our practical guide for leased and tenanted pub operators thinking about business interruption, continuity and recovery.

For a leased pub operator, the biggest problem is not always the incident itself. It is what happens next.

A fire, flood, equipment failure, stock loss, supplier issue, theft, utility problem or serious damage to the premises can quickly move from an operational headache to a trading crisis. The real question is not only whether the damage can be repaired. It is whether the pub can keep trading, recover income, support staff, protect bookings and avoid losing customers while the issue is resolved.

That is why business interruption should not feel like a technical insurance phrase. For a pub tenant, it is a practical question:

“If we could not open tomorrow, what would happen to the business?”

Why Business Interruption Matters For Pub Tenants

A leased pub depends on a chain of things working properly: the building, cellar, kitchen, refrigeration, stock, suppliers, staff, tills, card machines, utilities, customer access and sometimes outdoor space or accommodation.

If one link fails, the impact can spread quickly.

A fridge breakdown can mean spoiled stock and lost sales. A kitchen fire can stop food service. A flood can close part of the premises. A supplier failure can affect menu availability. A stolen piece of equipment can interrupt trading. Damage to an outdoor area can reduce capacity during a key season.

The Marsh UK Business Risk Reports show why this matters. In 2024, failure of key suppliers was cited by 39% of business leaders, while equipment breakdown was cited by 36%. In 2026, those concerns remained almost unchanged: failure of key suppliers was still the leading operational and supply chain risk at 38%, followed by equipment breakdown at 35%. (Source: Marsh UK Business Risk Reports 2024 and 2026, Operational and supply chain risk sections).

The trend is clear: supplier and equipment risk is not fading. It has become a steady operating concern.

For a pub tenant, that makes business interruption a renewal conversation, not an afterthought. Business interruption is really about recovery time.  Business interruption cover may help protect against loss of income following an insured event, subject to policy terms, conditions and exclusions. But the important question is not simply whether business interruption cover exists. It is whether the recovery assumptions are realistic. For example:

• How long could repairs take?
• Could the pub trade from part of the premises?
• Would food service stop even if the bar could open?
• Would staff still need to be paid?
• Would bookings, events or private functions be cancelled?
• Would stock be lost?
• Would customers go elsewhere?
• Would the landlord, freeholder or pub company need to approve works?
• How long would it take for revenue to return after reopening?

This is where a leased pub is different from a simple property risk. The tenant may not own the building, but the tenant may still carry the commercial pain of not being able to trade.

Five Continuity Questions Every Pub Tenant Should Ask

A practical business interruption review does not need to be complicated. It should start with five questions.

1. What would stop us trading?

Think about the events that would have the biggest impact:

• Fire or smoke damage
• Flood or escape of water
• Kitchen or cellar equipment failure
• Refrigeration breakdown
• Loss of access to the premises
• Theft of essential equipment
• Power, heating or utility disruption
• Supplier failure
• Damage to outdoor trading space
• A serious incident affecting customer access.

The aim is not to predict every problem. It is to identify the trading dependencies that matter most.

2. What income would be at risk?

Different pubs rely on different income streams.

A wet-led pub, food-led pub, events-led pub, pub with rooms or pub with a large outdoor space may all need different assumptions.

Ask:

• What proportion of revenue comes from food?
• What proportion comes from events or private functions?
• Is outdoor trading material to income?
• Are seasonal peaks important?
• Are major bookings already committed?
• Would income remain lower after reopening?

Lost trade is rarely just one lost day. Recovery can take longer than the physical repair.

3. What costs would continue?

Even if the pub cannot trade, costs may continue.

That could include rent, wages, utilities, finance payments, supplier commitments, licence costs, subscriptions, professional fees, cleaning, storage, security or temporary arrangements.

A strong continuity review should ask both sides of the question: what income stops, and what costs keep going?

4. What needs replacing first?

For pubs, certain assets are critical to reopening. Examples include:

• Refrigeration
• Kitchen equipment
• Cellar systems
• Tills and EPOS
• Card machines
• Stock
• Extraction
• Safety equipment
• Seating
• Signage
• Outdoor furniture
• Access points.

If these are not accurately recorded, or if new equipment has not been declared, the recovery conversation may take longer than expected.

5. Who needs to be contacted?

In a leased pub, recovery may involve more than the operator. You may need to speak to:

• Landlord or freeholder
• Pub company
• Broker
• Insurer
• Suppliers
• Contractors
• Staff
• Customers with bookings
• Local authority or licensing contacts
• Utility providers
• Payment providers
• Technology providers.

Having those contacts ready before an incident can reduce confusion when time matters.

Where gaps can appear

Business interruption gaps often come from assumptions.

A tenant may assume the landlord’s property insurance solves the problem. But even if building damage is insured elsewhere, that does not automatically deal with lost income, stock, tenant-owned contents, equipment, staff disruption or cancelled bookings.

Common issues include:

• Stock values not reflecting seasonal peaks
• New equipment not listed
• No clear recovery period assumption
• Events or room bookings not considered
• Tenant improvements not recorded
• Supplier dependency ignored
• Food service added but not reviewed
• Outdoor trading expanded but not reflected
• Payment or booking system dependency overlooked.

The Marsh 2026 report also notes that operational and supply chain risk remains a key overall risk area, rising slightly to 36% from 34% in 2024, and that businesses can defend against these risks through a combination of insurance and risk management, including business continuity planning and machinery damage/breakdown insurance. Source: Marsh UK Business Risk Report 2026, Operational and supply chain risk section.

That is the heart of the matter: insurance and continuity planning work best together.

What Good Looks Like Before Renewal

Before renewal, a pub tenant should be able to answer:

• What would stop the pub trading?
• What income would be affected?
• What costs would continue?
• What assets are critical to reopen?
• What suppliers or systems are essential?
• What does the lease say about repairs or responsibilities?
• What recovery period is realistic?
• What has changed since last year?

The 2026 Marsh UK Business Risk Report shows businesses continue to take resilience action, with 45% reviewing insurance coverage, 45% reviewing business contingency plans and 45% reviewing suppliers and/or customers in the past year. (Source: Marsh UK Business Risk Report 2026, Driving resilience section).

Those actions can be simple: review the policy, list the dependencies, check the lease, update values and know who to call.

Final Thought

A leased pub does not need a corporate crisis plan. But it does need a practical answer to one question:

“If we could not trade tomorrow, how would we recover?”

The answer starts with understanding the pub’s dependencies: premises, staff, stock, equipment, suppliers, payments, bookings, outdoor space and lease responsibilities.

If those dependencies have changed, the insurance conversation should change too.

Need help reviewing business interruption or continuity risks for your pub?
Smei can help leased and tenanted pub operators understand what questions to ask before renewal, business change or a major trading period.