Leisure Sector Insurance in 2026: Navigating a Changing Risk Landscape

The UK leisure sector, from gyms and leisure centres to pubs, hotels, entertainment venues and activity providers, has shown resilience and adaptability in recent years. Yet rising costs, changing consumer behaviour and evolving operational risks mean leisure businesses must take a fresh look at how they manage risk and protect their future.

Here’s a snapshot of the key issues shaping leisure insurance in 2026 and what operators should be thinking about now.

1. Rising Operational Costs and Budget Pressures

Leisure and hospitality businesses continue to feel the impact of rising costs across the board. National Living Wage increases, higher employer National Insurance contributions and ongoing business rates pressures are stretching margins, especially for small and medium operators. These cost burdens aren’t hypothetical: government policy driven by the latest Autumn Budget could add billions in annual expenses to the sector.

For leisure businesses where profitability is already tight, this means being strategic with risk management, including insurance that not only protects in case of loss, but also supports cashflow certainty and continuity.

2. Changing Consumer Behaviour and Demand Trends

While some corners of leisure struggle with oversupply or falling discretionary spend, other areas show growth. Consumer appetite for experiential leisure, such as activity-led venues, destination pubs and premium fitness experiences, is growing, even if broader spending remains cautious.

Operators must consider how changes in demand impact risk exposure:

• Increased footfall and activity can elevate liability risk

• New offerings (e.g., wellness experiences, interactive entertainment) introduce fresh safety considerations
  

These shifts underscore the need for risk assessments that reflect current operations and future plans, not legacy policy assumptions.

3. Cyber & Reputational Risk Go Mainstream

No longer confined to ‘tech’companies, cyber risk has become a core reputational threat for leisure businesses. As venues adopt digital booking systems, contactless payments and membership apps, the chance of a data breach or service-disrupting cyber event has jumped sharply.

For leisure operators, this means:

• Insuring against cyber liability and data breach costs

• Planning for business interruption from IT or system outages

• Considering reputational risk support as part of insurance solutions
  

What was once optional is now a strategic necessity.

4. Underinsurance Remains a Hidden Threat

Many leisure businesses underestimate the full cost of replacing or repairing assets. Underinsurance, particularly for buildings, contents, equipment and stock, can leave operators vulnerable after a loss event, forcing them to cover gaps out of pocket.

In an environment with rising rebuilding and replacement costs, accurate valuations and regularly reviewed sums insured are essential. Gaps in cover can quickly transform an insurable incident into a financial crisis.

5. Tailored Insurance Solutions for Unique Needs

The leisure sector covers a broad range of businesses, from gyms and swimming pools to pubs, boutique hotels, clubhouses and activity centres, each with very different risk profiles.

Comprehensive leisure insurance should typically include:

• Buildings and contents cover

• Employers’ and public liability

• Business interruption/loss of profits

• Equipment breakdown

• Legal expense cover

  
  

  (…plus other tailored options based on specific exposures)
  

Good brokers don’t just sell policies, they help operators structure protection around real-world operations and risk appetite.

6. Looking Ahead: Resilience in a Competitive Market

Despite financial pressures, there are reasons for cautious optimism. Experience-led leisure continues to attract spending, and well-run businesses that manage risk effectively are better placed to invest and grow.

However, with cost pressures intensifying and risks evolving, leisure operators must be proactive:

• Review and update insurance annually

• Invest in risk management and loss prevention

• Factor cyber and reputation protection into broader risk planning

• Ensure sums insured reflect current asset values
  

In a sector defined by service, experience and people, securing the right insurance isn’t just compliance; it’s a foundation for long-term resilience and growth.