Background

Recent years have seen severe increases in insurance premiums for operators of late night bars and clubs. This has been due to:

• a general hardening in the insurance market;
  
• the reputation of the late night sector as a higher than average risk; and
  
• the impact of “compensation culture” as individuals take advantage of no-win no-fee solicitors to target venues for ‘slip and trip' claims.
  
  

The resultant hikes in premium levels has forced many venues to reduce the number of nights they trade, scale back their offering or even close.

BEDA Insurance Scheme

BEDA identified a need to offer security of cover to the vast majority of venues up and down the country with high standards of operation and awareness of their social responsibilities. The BEDA scheme gives operators the opportunity to demonstrate their commitment to good operation and then receive cover at a discount to market rates. By demonstrating compliance with a code of best practice, operators will receive the best premium possible as just reward for high standards of operation.

The Code

Compliance with minimum selection criteria will identify a venue as an average risk and therefore eligible for access to the scheme. Key elements of the code include:

• Annual Electrical Inspection
  
  
• NACOSS approved Redcare signalling to alarm receiving centre for Intruder and Fire alarms.
  
  
• Three years experience at the same premises with the same management
  
  
• Automatic Fire detection system to be in full operation in all areas of the club/venue.
  
  

Over time, BEDA expects to work with our partners at the Local Government Association and Association of Chief Police Officers to develop further, voluntary, elements of the code. There will be a clear financial benefit to those operators that recognise, meet and exceed their social responsibilities. This will clearly have spin off benefits in other areas e.g. tackling alcohol misuse and related disorder and disturbance.

Policy Goals

BEDA shares the view of the CBI that the Government needs to take steps to curb the growing have-a-go mentality, which means too many claimants are launching dubious cases in the hope of a payout.

Hopefully the Better Regulation Task Force inquiry, looking at whether the threat of litigation is an effective way of encouraging good practice or actually has a detrimental effect on private and public sector, will push for reform. Primarily:

• Action to discourage the ”have-a-go” mentality by making claimants bear a greater share of costs should they lose the case
  
  
• A requirement for advertisements for no-win, no-fee solicitors to make clear that there could be a cost should the case be lost.
  
  
• Introduction of a pre-trial arbitration process to ensure only genuine cases go forward.