What does the Pubs Code say about premises insurance?
Under regulation 46 of the Pubs Code, a pub company must provide tied tenants with information about premises insurance where it intends to charge the tenant in respect of the premium. This ensures full transparency and allows the tenant to look for a cheaper policy. If the tied tenant finds one that is suitable and comparable in coverage, the pub company must buy that policy or agree the tenant will not have to pay the difference.
What has the PCA done?
In March 2024, the PCA concluded its review of Star’s reported breaches of regulation 46(2) of the Pubs Code. This supervised inquiry related to the information Star provided to tenants in relation to the premises insurance for which they were charged. As a result of this review, Star worked with the PCA to revise its correspondence to tied tenants to clearly explain its insurance arrangements and the method used to calculate the premium for each premises.
In October 2024, the PCA wrote to all pub companies to draw attention to Star’s actions and to ask the other pub companies to make sure they were complying with the information requirements in regulation 46(2) of the Code, including where they had self-insurance arrangements.
Since then, the PCA has been considering how pub companies comply with their tenants’ price match right in the Pubs Code. The price match right ensures that, where the tenant finds a cheaper ‘suitable and comparable’ alternative policy, the pub company must buy it, or agree in writing that the tenant will not have to pay the difference in cost.
In March 2025, the PCA again wrote to all pub companies asking them to verify compliance with regulation 46 of the Pubs Code, and in particular, the requirements of the price match right. The PCA is clear that pub companies should not be considering whether a tenant’s alternative policy is the same or better than the pub company’s existing policy, or ‘like for like’. The statutory test is ‘suitable and comparable’.
The PCA’s 2024 Annual Tied Tenant Survey showed that only 56% of tenants were aware of their right to price match the amount they pay their pub company for premises insurance on the open market. The PCA has asked all pub companies to consider whether changes should be made to their insurance communications with tied tenants to improve awareness of their rights, and to ensure the price match right under the Pubs Code is clearly explained.
The PCA welcomes information from stakeholders, including tied tenants, regarding pub company compliance with the insurance price match right, or the information requirements under regulation 46 of the Pubs Code.
The PCA can be contacted at office@pubscodeadjudicator.gov.uk
