It feels like we’re in Covid again, but the rest of the world is normal. It’s been a rough couple of months,” says Monica Berg, co-owner of London’s Tayēr + Elementary.

For a bar the only thing worse than social distancing and mandatory PPE is mandatory closure. In early May a neighbouring basement to the acclaimed Tayēr + Elementary caught fire, which forced the bar to shut with immediate effect.

Since opening in 2019 the bar has been a regular fixture of The World’s 50 Best Bars, peaking at second in consecutive years, and it’s not the first high-profile venue to have its proverbial fingers burnt.

In July 2018 The Dead Rabbit, which topped the World’s 50 Best Bars in 2016, suffered $500,000 worth of damage from a kitchen fire and managed to reopen less than three weeks later.

For Tayēr + Elementary the situation is different because the fire wasn’t on its premises, meaning the brand’s future is currently in the hands of corporate insurers. A game of chess between insurers, landlords, tenants and intermediaries is slowly playing out over months, and could be years. At time of writing, investigations are ongoing to determine the cause of the fire, the extent of the damage and who’s to blame. Until then, no money can be distributed and nothing can be done to get one of the world’s best bars back open to the public.

“Best case scenario is no structural damage and the bar will open early autumn, worst case scenario is closer to two years,” adds Berg. “Insurers give two options; one is to relocate with the help of the insurance company and the second is a payout, albeit at a much lower value. But we have a successful business so we don’t want to leave.”

When it comes to litigation, Berg has learned a lot about the insurance world since May and, despite suffering a huge blow, there have been some silver linings.

“It’s difficult to navigate insurance in our industry because the hospitality sector has different policies to other industries, which many people don’t know. For example, if you have generic small business insurance for your bar then you might not be covered for loss of stock, which is different to inventory.

“We renewed our policy earlier this year, which has helped us a lot. Since we started doing our RTDs we’ve adapted our policy to allow for more stock on site, but if we still had the same policy from when we opened the venue in 2017 then we could’ve had problems.”

ADAPTING TO CIRCUMSTANCES

As with any good employer, it’s not just the top line that is important but the welfare and future of staff. Since the fire the team has reverted to the same schedule as during the pandemic, with daily training sessions, supplier training and supplier visits to keep them active and engaged.

“But the most important policy we have is business interruption insurance. We have a whole team to look after and without this we wouldn’t have been able to get any payout since the bar has been closed. All of the damage to the bar will be covered by one part of the policy, but loss of earnings and the salaries, which is the most crucial thing, are covered by business interruption insurance. It also takes time for insurers to agree settlements, so in the beginning we had to be patient, but now all our salaries are being covered.”

Long-term relationships are something Berg firmly believes in. Build bonds with lawyers, accountants, suppliers over years so that in times of crisis, you get the correct advice you didn’t know you need.

Berg adds: “When it happened all communication came between them and their landlord. The landlord then appointed a loss adjuster who’s responsible for protecting their policy.

“But then our accountant advised us to employ a loss advisor (assessor), who has been invaluable. We now only speak to them and only take advice from them, they know our policy and our rights and they only take a percentage of what they get for you until you actually get your own money.

“They also helped us navigate what we can do to keep the business moving while the site is closed, such as the trainings and temporary sites. Ultimately, they want your business to stay relevant so you can continue trading when you reopen.”

Part of this process is the launch of Casual by Tayēr, a six-week residency in the heart of London which will keep one of the world’s best bar brands alive while its home lies dormant.