Life insurance protection for bar staff during Covid-19


Bar work, whether as a professional endeavour or used as a temporary means of making some money, can be a rewarding occupation.

The role can offer flexible hours, can be extremely fun and the money can be very good too, depending on where you work and tips.

However, the global Covid-19 pandemic has decimated the bar and pub sector and unfortunately put many of these hospitality jobs and businesses in jeopardy.

Even when businesses are able to trade it is within the government’s Covid restrictions; closed by 10pm, maximise of six at a table etc.

It is estimated that the pandemic has cost the UK hospitality sector £30 billion to date, whilst sales at bars, pubs, restaurants and hotels plunged 87% during the lockdown, (source:www.thespiritsbusiness.com).

As a result, the need for life insurance has rarely been so great for those within the bar industry, not just for front of house staff but managers and owners too.

What is life insurance?

Life insurance in simple terms is financial protection for your loved ones. If you were no longer around to provide, your dependants would receive a significant cash pay out.

The pay out can be used as the beneficiaries wish, however, usually it is used to cover the mortgage, provide an inheritance and/or meet future family leaving costs.

The greater the risk you pose to the insurer or put another way, the higher the chance of a claim, the more expensive your life insurance premiums will be.

As a result, if budget allows, it is best to arrange life cover whilst you are still young and healthy, locking in low premiums (around 20p-a-day for £200,000 cover) for an extended term, (up to 40 years).

But do you even need life insurance?

If you have dependants who rely on you financially life insurance is usually a very good idea. If you have no children, you do not own a property and have no debts, then you probably will not need life insurance. That said, your current situation may be very different to how your life is in the future.

Another policy option is income protection insurance. Instead of paying out a lump sum as with life insurance, income protection pays you a tax-free monthly income, effectively replacing your salary, it you are unable to perform your job due to an illness or injury.

What about life insurance for bar staff?

According to the article “The most surprisingly dangerous jobs in America today” on lovemoney.com there were 31 bar staff deaths in 2018 with 77% of these fatalities due to violence on the job. Thankfully, similar incidents in the UK are far less common.

As mentioned, the greater the risk you pose to the insurer, the higher your monthly premium is be.

However, this is not the whole story when it comes to bar staff getting life insurance.

Why? Because insurers view the risks that bartending can bring; drunk customers, broken glass, drug use etc, very differently.

So, whilst one insurer may view a bar job as possessing a standard level of risk, another insurer (for example Legal & General) may consider it a higher risk, hiking your premiums.

So, what is the solution for bar workers?

The most effective way of securing the lowest possible premium is to compare multiple quotes, because different underwriting criteria can mean very different prices.

There are different ways you can compare quotes. A convenient method is to use a comparison website, where you can compare quotes for free 24/7 online.

Comparison websites are especially useful if you know the policy type and cover amount you require.

If you are unsure on what policy type you require, the term length and cover amount it may be beneficial to use an FCA registered broker.

A broker can also compare multiple quotes, often free of charge, however here you receive a more personalised service.

For example, they are able to help run you through the application process, writing your policy in trust (to avoid 40% inheritance tax) and answering any question you may have, unpicking any insurance jargon.

The UK’s largest broker Reassured is able to do all of this free of charge through their no-obligation service.

Lastly, you can research and source quotes yourself either online or over the phone. Whilst you will be restricted to a panel of insurers when using a comparison website or brokerage, here you have access to the entire marketplace, including the likes of Direct Line.

Despite this, researching quotes yourself is obviously very time-consuming and can be frustrating.

In summary

We are living in very uncertain and challenging times. Having comprehensive life insurance in place can at least take away the financial burden if anything were to happen to you.

Somewhat surprisingly, at the time of writing this article, obtaining life insurance and being accepted onto a policy had not been greatly impacted by Covid-19.

We hope you have found this article helpful.

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