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Loss of licence cover for a range of emergencies

11 Jan 2010

It's surprising how many businesses require a licence of some sort or other to operate effectively. In the hotel, guest house, night club or pub business - the so-called "licensed trades", however, the loss of a licence to sell alcohol can be not just a legal nicety, but absolutely critical to the continuation of the business, the loss of business, or even the collapse of the business itself. Loss of licence cover, therefore, is designed to provide protection in the event of such a critical business emergency.

Who needs a liquor licence?

If you run any of the above types of business in your capacity as a licensed trader - and it could simply be a shop that sells alcohol, for example - you will need a liquor licence in order to be able to legally sell alcohol to your customers;

The legal side of things

Whether as shop or as a bar, or other establishment, being able to sell alcohol on your premises may give you the edge over your competitors who do not have a licence to do so. That is why loss of licence insurance can be very important (especially where the sale of alcohol is central to the business).

Although the decision to revoke a licence is not taken lightly it can frequently be the result of matters beyond the immediate control of the business itself - no matter how carefully it has tried to operate within the law and regulations. Public disorder or crime, public safety, public nuisance, for example, may sometimes lead to the loss of that critical licence. Loss of licence cover does not cover against criminal acts such as selling alcohol to those underage.

These are just some of the examples of the risks run by any business that relies on the continuing validity of some form of operating licence.

Loss of licence cover is designed to provide financial compensation for the loss of business as a result of your establishment no longer having a licence, up to £100,000, and subject to qualifying criteria. This can give you the peace of mind that if the unexpected does happen, your business will not fail while you sort out arranging a new licence.
 

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