I saw glasses move across the bar one night, and thought, what happens if it does something to hurt somebody

Terry Meggs, landlord

It is allegedly haunted by a monk who hanged himself after being caught having an affair with one of the pupils or teachers.

Mr Meggs said: "Locals know this place has always been haunted. I never believed in ghosts before I came here.

"I saw glasses move across the bar one night and thought what happens if it does something to hurt somebody."

Mr Meggs said that they are currently in the process of renovating the building.

He is particularly worried guests staying in room 10, which is where the monk is supposed to have killed himself, might be hurt by it.

The policy has been taken out with insurers Ultraviolet, which offers cover for a range of paranormal activity.

But the policy does state that "claims arising from liquid spirits are specifically excluded".

Ultraviolet's chief underwriting officer, Simon Burgess, said: "There has been paranormal activity there, and we will treat any claims very seriously, and carry out our normal psychic investigation."

The group has met claims in the past. Several years ago it paid out �100,000 on its Spooksafe policy after investigators looking into the death of a woman who had been thrown over the bannisters at her home in the US concluded that a ghost was responsible for the crime.