Running a hospitality business is full of passion, creativity and risk. This month, we talk to Max Merriman from Preston Insurance Brokers, who specialises in supporting restaurants, pubs, and cafés across Brighton and Sussex. Max helps hospitality teams protect what they’ve built – from property and public liability to unexpected mishaps- so they can focus on serving great food and creating memorable experiences.
Can you give us a quick overview of Preston Insurance Brokers and what you specialise in?
We’re a Brighton based insurance broker with a real focus on personal service, and we love working with the brilliant mix of businesses across our community!
We’re proudly independent, yet also part of the A One Insurance Group, which means our clients get the best of both worlds.
Local care when you need it and access to specialist policies you won’t find everywhere else. Add in our in house claims team who stay by your side all year round and you’ve got proper support, not just a renewal reminder!
We can work with almost any type of business, but we have a particular soft spot and the expertise to match for independent pubs, restaurants, hotels, bakeries, food retailers, food wholesalers, etc. If it involves food or drink, we’re all in!
Hospitality insurance can feel like a maze — how do you help restaurants, pubs and cafés make sure they’re properly protected?
The key is getting to know each business properly.
We spend time understanding how they work, what keeps them busy, what keeps them awake at night, and where they want to be in the coming years. Once we know the moving parts, we can pick out the real risks and make sure the cover actually fits the way they operate. It turns what can feel like a maze into something clear and manageable, and lets owners get on with running their business without second guessing whether they’re protected!
What are the most common insurance gaps you see in hospitality businesses?
One of the most common gaps we come across is in business interruption cover.
Many hospitality businesses still lean toward gross profit, when in reality gross revenue often gives a far clearer and more complete level of protection. Once we walk through the figures with clients and look at how income really flows through their restaurant, pub or café, it usually becomes obvious that insuring the full revenue stream leaves far fewer blind spots. We also make sure the cover reflects where the business is going, not just where it is today, so we look at growth allowances and day one uplift to keep everything in line with real world plans.
Another area that gets overlooked is Additional Increased Costs of Working.
This cover allows you to claim for any costs reasonably incurred in the interest of the business during a Business Interruption claim, regardless of whether or not they directly mitigate a reduction in turnover, i.e. things that ultimately cost you money, but help you in the long run. There is no way of predicting every expense you may face when your business is disrupted, and this helps cover those gaps. For hospitality, where staying open or adapting quickly can make or break a season, this cover is incredibly useful.
We also see gaps around dependency risks, especially where a business relies heavily on certain customers or suppliers.Specified Customers means that if you have one or a few customers generating most of your turnover, you can list them under your Business Interruption cover. If they suffer Material Damage at their premises and can’t trade, your loss of income is protected.
Specified Suppliers works the same way, but for key suppliers. If a supplier suffers Material Damage and can no longer supply you with goods, your resulting loss of income while you source an alternative is insured.
And of course there’s loss of licence. It is surprising how many pubs, bars and late night venues don’t have this covered, especially given how central the licence is to their survival. It’s a major gap and one of the first things we check.
These are the details that really shape whether a hospitality business can bounce back after a loss, which is why we take the time to get under the skin of how each client actually operates.
What types of cover do you recommend every hospitality venue considers as a minimum?
At a minimum, every hospitality venue should think about the core covers that keep the business protected day to day.
Public liability and products liability are key, as they look after you if a guest is injured or becomes unwell after eating or drinking on your premises. Employers liability is a legal requirement if you have staff, even if they are part time or casual. Material damage cover also matters, as it protects the building, the contents, the stock and the equipment you rely on.
Business interruption is another essential piece, ideally on a gross revenue basis with proper allowances for growth. This looks after your income if something happens that stops you trading. We also recommend considering a loss recovery policy, which appoints a professional loss assessor to act solely for you on any claim over £5,000. They handle the technical side, push the claim forward and make sure the settlement reflects the true cost of the loss.
Loss of licence is also something we look at closely for pubs, bars and late night venues. If your alcohol licence is suspended or revoked following circumstances outside your control, this cover protects the income you would otherwise lose. For many venues it can be the difference between surviving a setback and shutting the doors for good.
Management liability is another important consideration, even for smaller venues. It protects the people running the business if a decision they make is challenged, such as a health and safety issue, a regulatory matter or a dispute over how the business is managed. It is a simple but very valuable safety net.
These basics create a strong foundation and help ensure a hospitality business is not left exposed when something unexpected happens.
Can you share a real-world example where having the right cover made a huge difference for a venue?
One moment that really proved the value of having the right cover was when a client of ours, who owns a small group of independent pubs, had a fire at one of their venues. We were on site with the loss adjusters within 24 hours and repairs started soon after. Because their business interruption cover was set up properly, and because they also had a loss recovery policy in place, the pub was able to reopen in just three weeks, which is incredibly fast for a fire claim of that scale.
The loss recovery piece made a huge difference.
It meant they had a dedicated, independent loss assessor working solely for them, handling the claim, pushing the process forward, challenging figures where needed and making sure every part of the loss was captured, as well as our own in-house claims team. It took the pressure off the owners at a time when they were dealing with staff, bookings and suppliers, and it helped get the settlement agreed quickly and accurately.
We then worked alongside them on finalising both the repair costs and the business interruption calculations for the closure period and the months that followed. It’s a perfect example of why we always recommend loss recovery, and how the right protection can keep a business moving when everything grinds to a halt.
Conversely, have you seen situations where a lack of cover caused problems — and what can others learn from that?
Not really! Fortunately, due to the way we approach each of our Clients insurances we have not had this issue.
Hospitality venues face rising costs across the board. How do you help businesses balance proper cover with affordability?
Rising costs are a real challenge for hospitality, so our job is to make sure the cover is right without stretching the budget. We start by getting to know each client properly, because understanding how they run the business and their attitude to risk makes a huge difference. Some owners prefer a belt and braces approach, others are comfortable taking on a little more exposure to keep premiums down. Once we understand that balance, we can shape the cover so it actually reflects what they want and need.
We also have access to a wide panel of insurers, which means we can compare terms and make sure clients are getting genuine value rather than simply the cheapest headline premium. Highlighting the positive aspects of how a venue operates also helps. Strong processes, good housekeeping and sensible risk management often translate into better pricing and long-term stability.
Finally, we look at risk management in a practical way. Helping clients put simple measures in place can reduce claims, improve underwriting appetite and keep premiums steadier over the years. It’s all about making sure the cover is robust, sustainable and aligned with how the business truly works.
You’re also involved in the food and drink world beyond insurance — can you tell us about Prept. and how that came about?
Prept. began life as the Table Talk Foundation and was set up with a really positive mission. The aim is to help children learn how to cook, understand sustainability and build healthier habits from a young age. Chefs go directly into primary and secondary schools to work with students, bringing real food education into the classroom in a way that feels fun and hands on.
Noel Preston, our Divisional Director, was a Trustee for the first 3 years, so he was closely involved in helping the charity grow during its early stages. Through that work Prept. has also created strong links with local hospitality businesses, giving them a practical way to support the next generation while strengthening the wider food and drink community.
How does supporting food education through services like Prept. deepen your understanding of the industry?
Being close to food education through Prept. gives us a wider view of what the hospitality industry is dealing with behind the scenes. You see first hand the pressures on staffing, the challenges in getting young people interested in the trade and the reliance venues have on good suppliers and stable costs. It highlights the financial and economic risks that sit in the background of every restaurant, pub and café, long before you even get to the insurance side.
Understanding those real world pressures helps us have better conversations with clients. We get a clearer sense of the risks they face day to day, what keeps them up at night and what they need from their insurance to stay resilient. It deepens our understanding of the industry in a way that you only get when you’re involved beyond the policy documents.
What do you love most about working with Brighton and Sussex’s hospitality scene?
Honestly, it has to be the people right? Brighton and Sussex have this brilliant mix of chefs, pub owners, café teams and producers who all bring their own character to the scene. No two venues feel the same and you end up meeting some genuinely interesting people with real passion for what they do. I’ve recently moved properly into Brighton after being on the outskirts for a few years and getting to explore the city properly has been grand. Eating out, discovering new pubs and seeing the creativity that goes into each place has made working with the local hospitality community even more rewarding.
Brighton has such a diverse food landscape — where are some of your favourite places to eat?
Brighton’s food scene is so good that choosing favourites feels almost impossible. I even checked in with our Divisional Director for a few extra suggestions because he’s been a veteran of the Brighton hospitality scene for years, and even then we were spoiled for choice.
Some of the places we’ve loved over the years include Wild Flor, etch by Steven Edwards, Lost in The Lanes, Riddle and Finns, Jo and CO, Nostos, Gars, Chilli Pickle, Ladies Mile Pub, The Flour Pot Bakery, Tutto, Coal Shed and Hove Place. I’m sure there are loads we’ve missed, which is all part of the fun of eating your way around Brighton.
Do you have a go-to spot for a relaxed lunch? And how about a special-occasion dinner?
For a relaxed lunch there are so many brilliant options in Brighton that it almost changes week by week. Wild Flor is always a lovely choice and Riddle and Finns on the seafront is perfect when you want something relaxed but still a bit special. I also checked in with Noel, as he’s got years of experience eating his way around the city, and those two came straight to mind for him as well.
For a special occasion dinner it’s hard to beat etch by Steven Edwards. It always feels like a real experience and is one of those places you look forward to long before you sit down. Of course, Brighton is full of fantastic restaurants, so these are just a couple of favourites rather than the definitive list.
For newer hospitality operators just getting started, what’s one piece of risk or insurance advice you’d give them?
For new operators, the best advice is to get the basics right early. A clean, well-maintained kitchen makes a huge difference, not just for safety but for preventing the kind of issues that can turn into costly claims. Investing in training and looking after your team is just as important, because confident, well-supported staff reduce risk across the whole venue.
I’d also recommend putting a simple business continuity plan in place from day one. It doesn’t need to be complicated from day dot, but knowing how you would cope after a fire, a flood or a major breakdown saves a lot of stress if something does happen. Even knowing how to handle smaller claims, like slips ands falls is very helpful. And finally, make sure your business interruption cover is set up on the right basis. Getting the revenue figures and indemnity period right at the beginning gives you proper protection when you need it most and stops a disruption becoming a disaster for a young business.
And finally — if you were to sum up Preston Insurance Brokers’ approach to hospitality businesses in one sentence, what would it be?
Supporting, protecting and enjoying our local hospitality.
