Who needs an alcohol licence in the UK?
Any business, organisation or individual who intends to sell or supply alcohol is required to apply for and hold a licence under the Licensing Act 2003. This will include;
- pubs and bars
- late-opening cafes
- village and community halls
- supermarkets and shops
The licence is usually applied for and granted by a local council.
Who needs loss of licence insurance?
Clearly for many businesses whose business is to sell and supply alcohol is reliant, at least in part on being granted and maintaining that licence. If the licence was to be suspended or removed then this could have a detrimental effect on the business.
The loss of licence insurance policy is intended to address the problem of a reduction in turnover and the costs associated with regaining the licence in a number of circumstances.
What is covered by the loss of licence insurance policy?
- The policy protects the insured in respect of the depreciation in value of the interest of the Insured in the Premises by forfeiture, withdrawal, suspension or refusal of transfer of the alcohol licence and
- any costs and expenses necessarily incurred in connection with any appeal against such forfeiture, withdrawal, suspension or refusal of an alcohol licence.
What is not covered by the loss of licence policy?
The policy does not cover losses arising from;
- the misconduct or procurement or connivance or neglect or omission of the Insured or by any failure of the Insured to take any step necessary for keeping the Licence in force
- the removal or suspension of a licence where compensation in respect of that loss is made to the policyholder under an act of parliament
- the removal or suspension of a licence as a result of planning or changes to the law.
- other considerations including actions against personal licence holders. Full details of exclusions are available with any quotation documents or policy wordings.
How can I buy loss of licence insurance?
For the majority of licence premises the cover is avaiable as an extension to package insurance policies designed to meet the needs of businesses such as pubs, wine bars, shops clubs and the like. For others a separate policy specifically tailored to your needs can be arranged with a specialist underwriter.