Update - The Pubs Code Adjudicator has concluded its review of Star’s reported breaches of the Pubs Code in relation to information given to tied tenants about premises insurance
Star has now revised its communications with tied tenants to ensure it provides transparent information in relation to premises insurance as required by the Pubs Code.
How did Star breach the Pubs Code?
On 21 December 2022, the PCA reported that Star Pubs and Bars had identified breaches of the Pubs Code in relation to the provision of information given to tied tenants about premises insurance. This issue arose from the beginning of the Pubs Code in 2016.
Under regulation 46 of the Pubs Code, a pub company must provide tied tenants with information about premises insurance where it intends to charge the tenant in respect of the premium. This ensures full transparency and allows the tenant to look for a cheaper policy. If the tied tenant finds one that is suitable and comparable in coverage, the pub company must buy that policy or agree the tenant will not have to pay the difference.
Star has a self-insurance arrangement through a company owned by the Heineken group (which also owns Star). As Star insures its estate as a group, Star took the view that it was not possible to comply with regulation 46(2) as it does not hold information on the insurance premium for individual premises.
Star also confirmed that correspondence sent to tenants in December 2020 had not included necessary details about the identity and operation of its policy, and the option to price match.
Action taken by Star
Prior to contacting the PCA, in March 2021, Star sent further information to tenants and updated its Guide to Insurance Responsibilities.
After reporting this breach, Star has worked with the PCA to ensure transparency is provided to tenants as required by regulation 46 of the Pubs Code. In particular, Star has now revised its correspondence with tenants to ensure it clearly explains Star’s insurance arrangements and the method used to calculate the premium for each premises.
The PCA is satisfied that Star has taken appropriate action in response to the reported breach.
Enquiries about this matter can be sent to Star’s Code Compliance Officer, Lynne Winter at pubscode@starpubs.co.uk.
The PCA office can also be contacted at office@pubscodeadjudicator.gov.uk.