Pub Insurance in Singapore

Real-life claim example: 60 people evacuated after fire rages at KTV pub, 1 taken to hospital

In 2020, a fire broke out at Pandora Club and KTV, a popular KTV pub near Somerset MRT. 60 people had to be evacuated from the premises. The KTV pub suffered quite extensive fire damage. 1 person even had to be medically evacuated for smoke inhalation. The fire was so severe that 9 emergency vehicles had to be rushed to the scene, with 30 firefighters deployed to extinguish the flames.

Cases like these are living proof of why a good Pub Insurance policy is so critical for pub owners. A fire could easily destroy your pub within just a matter of minutes. It doesn’t even need to start in your pub. It could just as easily start in the business next door, and then spread to your premises! Singapore is so dense that a fire that starts even a few units away could easily engulf the entire floor, or building.

With a Bar Insurance policy, you’ll have protection against many of biggest risks that pub entrepreneurs face.

Firstly, Commercial Property coverage would pay for physical damage that your pub suffers. This policy would pay for the expense to clear your pub of all the post-fire debris. The policy would pay for renovating your pub to its original state, replacing your fixtures and fittings, and replacing damaged equipment like fridges, beer taps, kitchen stoves, TVs, Karaoke machines, and more. It would also help to replace damaged inventory like food and drinks that you store on-site. 

Secondly, Business Interruption coverage would pay for your  lost gross profit when you can’t operate your pub. In the case of the Pandora KTV Pub, not only would the owners have to repair their pub, they would also have to cover overhead expenses like rent and salaries while doing the repairs. That’s two sets of large costs to bear, at the worst possible time! Business Interruption Insurance would help cover the gross profit that you don’t earn while your pub is being renovated for its reopening.

Thirdly, Public Liability coverage would protect you if third-parties (e.g. pub customers) sued you for causing them personal injury or property damage. In the example of the KTV fire above, 1 person had to be sent to the hospital for inhaling excess amounts of smoke. Smoke inhalation from a fire is no joke. In serious cases, people die. Pub patrons can hold your business legally accountable for injuries they suffer while in your premises. In such scenarios, Public Liability coverage would pay for lawyer’s fees and legal damages.

Lastly, WICA coverage would compensate employees if they suffered work-related injuries or illnesses. Pub employees can face many hazards while doing their job. Cooks and bartenders can get cut, burnt, suffer joint ailments, or break bones from falls. WICA Insurance would cover the medical expenses of injured employees. Do note that MOM requires employers to purchase WICA Insurance for all manual staff. For a pub, this would include: bartenders, waiters/waitresses, cooks, kitchen assistants, cleaners, handymen, and any other role that involves physical work. You must also have WICA Insurance for any staff earning below $2,600/month.