PART 10 Miscellaneous

46 Insurance
1 Paragraphs (2) to (4) apply where a pub-owning business intends to charge a tied pub tenant an amount (“the insurance charge”) in respect of premiums for insurance in respect of the premises to which the tenancy or licence relates.
2 The pub-owning business must inform the tied pub tenant whether—
(a) the insurance charge exceeds the amount payable by the pub-owning business in respect of premiums for insurance in respect of the premises under the insurance policy and, if so, the amount of that excess; and
(b) the pub-owning business, or any group undertaking in relation to the pub-owning business, receives, or expects to receive, any commission or rebate in connection with that policy.
Section 72(1) of SBEEA 2015 defines “group undertaking”.
3 Before the pub-owning business purchases, or renews, an insurance policy in respect of the premises, the pub-owning business must—
(a) provide to the tenant full details of that policy, including the cover which is provided, the charges payable and any contributions towards a claim which the tenant is required to make;
(b) provide to the tenant any additional information required to allow the tenant to compare the policy with other suitable, comparable policies which may be available; and
(c) where the tied pub tenant notifies the pub-owning business that it has identified a suitable and comparable alternative policy (the “tenant’s alternative policy”), consider that policy.
4 Where the pub-owning business is required to provide information under paragraph (3), the pub-owning business must do so—
(a) at least 21 days before the day on which the policy has effect; or
(b) if earlier, at least 21 days before the day on which the pub-owning business enters into the insurance.
5 Paragraph (6) applies where the insurance charge is higher than the amount which it would be if the pub-owning business entered into the tenant’s alternative policy (the “alternative insurance charge”).
6 The pub-owning business must—
(a) purchase the tenant’s alternative policy; or
(b) agree, in writing, that any difference between the insurance charge and the alternative insurance charge is not payable by the tenant.