Licensed trade insurance – what you need to know

22 Jul 2009

It is important to consider consulting a specialist insurance intermediary like ourselves, who are familiar with the challenges of running a licensed business.

What does it cover?

Most policies contain a core set of elements which are typically needed for any licensed business. 

Employers' liability insurance

This is usually compulsory if you employ people. The requirement even applies to temporary and casual workers, and those working for you under contracts for services. The law requires you to have adequate cover relating to claims for injuries and accidents that your employees might suffer when they are in your employment. 

Public liability insurance

Examples of claims which might arise under this heading include:

• A customer slips on a wet floor near the bar and sues for personal injury;
• A customer is working on his laptop during lunch. Your waitress pours a cup of coffee over the laptop by mistake. The customer sues for damage to his laptop.

Claims can arise for personal injury and for damage to property. The claimant could be a customer of your business, or even just someone you have had contact with in the course of your business. The policy should cover the claimant's legal fees, as these can run to tens of thousand pounds.

Public liability insurance can also sometimes be essential to securing business from certain types of clients, like those in the public sector and large organisations. Many such organisations will not do business with anyone who does not have adequate cover. This can be bought separately, or as part of a licensed trade insurance package.

Specialist intermediaries like ourselves appreciate the complications involved with listed buildings and unusual features, which require particular approaches to rebuilding.

Business interruption

Following a fire or other catastrophe, there may be a period of weeks or months when you cannot trade, or when your business is impeded by the rebuilding or repair work. That is why business interruption cover is an important part of a licensed trade insurance policy. 

Contents insurance

Aside from the obvious things to be covered like furniture; glassware and crockery; licensed trade insurance should include food and drink; items in freezers; and possibly perishables in transit. 

The "licensed" part 

Your policy should cover any losses that result from your business losing its license for any reason that is not your fault. 

Strong support

It's often the features that stand behind licensed trade insurance that set providers apart. We can offer offline support from accessible, well trained staff; and a variety of payment options to suit your business needs. 

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