What is loss of licence cover?
What the policy pays and how the sum insured is set.
Loss of LicenceInsurance
Loss of Licence Insurance
Protects your income if your alcohol licence is suspended, revoked or not renewed, covering lost profit and the fall in value of your business.
Protects your income if your alcohol licence is suspended, revoked or not renewed, covering lost profit and the fall in value of your business.
Lost profit coverLicence review costsAlcohol licence only
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What is loss of licence insurance?
Loss of licence insurance protects your income if your alcohol licence is suspended, revoked or not renewed, covering lost profit and reasonable costs while you resolve the issue.
Most policies also pay for the drop in the value of your interest in the premises, because a pub or shop that can no longer sell alcohol is worth considerably less than one that can.
Loss of licence cover can include:
Lost profit while suspendedCosts of a licence reviewAppealing a decisionFall in the value of the businessLegal representation at a hearingOngoing fixed costs
Who needs loss of licence insurance?
Any business whose takings depend on being allowed to sell alcohol. If losing the licence would close you or halve your turnover, the licence itself is the asset that needs insuring.
You should seriously consider cover if you:
Operate a nightclub or late venueSell alcohol in a convenience storeRun a restaurant with a barRun a pub or barHold an off-licenceServe alcohol at a hotel or B&BHow can you lose an alcohol licence?
Rarely out of the blue. Most losses follow a review of the premises licence, which any responsible authority, the police, environmental health or the licensing authority, or a local resident can apply for.
In England and Wales a review under the Licensing Act 2003 can end in modified conditions, the removal of your Designated Premises Supervisor, a suspension of up to three months, or revocation. Scotland and Northern Ireland run separate regimes.
Reviews are commonly triggered by:
Underage sales at a test purchaseCrime or disorder linked to the premisesServing after permitted hoursNoise or nuisance complaintsBreaching a licence condition
What loss of licence cover does and doesn’t answer
What loss of licence cover does and doesn’t answer
The policy is built around the alcohol licence specifically, and around losses you didn’t bring on yourself. Reading those two boundaries is most of understanding the cover.
The policy is built around the alcohol licence specifically, and around losses you didn’t bring on yourself. Reading those two boundaries is most of understanding the cover.
| The situation | Usually covered? | What to know |
|---|---|---|
Licence suspended after a review | Normally yes | Lost profit and costs during the suspension |
Licence revoked altogether | Normally yes | Includes the fall in the value of your interest |
Lost through your own misconduct | Commonly excluded | Most wordings exclude your own deliberate breach |
A different licence is lost | Not covered | This policy responds to the alcohol licence only |
Top Tip
Keep your refusals register, staff training records and Challenge 25 evidence up to date. They are what a licensing hearing turns on, and they are also what your insurer will ask for.
What could go wrong with your licence?
What could go wrong with your licence?
Most claims start with a single incident, a failed test purchase, a serious assault, or a run of complaints from a neighbour, and end in a review hearing.
Most claims start with a single incident, a failed test purchase, a serious assault, or a run of complaints from a neighbour, and end in a review hearing.
Your insurance documents explained
Once you’re covered we’ll send your documents the same day. The loss of licence section sets out the indemnity period and what you have to tell us, so it repays a read.
If you employ anyone, your employers’ liability certificate must be displayed where staff can see it.
Your schedule typically shows:
Your sum insuredThe licence the cover applies toWhat you must notify us ofThe indemnity periodConditions on staff training
Cover often bought alongside loss of licence insurance
Cover often bought alongside loss of licence insurance
Loss of licence is an add-on rather than a standalone policy. It normally sits inside a pub, bar or off-licence package next to public liability and business interruption.
Loss of licence is an add-on rather than a standalone policy. It normally sits inside a pub, bar or off-licence package next to public liability and business interruption.
RecommendedPublic Liability
Covers injury or damage claims from customers and visitors.
RecommendedBusiness Interruption
Replaces income lost after a fire, flood or other insured event.
OptionalLegal Expenses
Covers legal costs, including representation at a licensing hearing.
OptionalStock Insurance
Covers drinks stock and cellar contents against theft, fire or damage.
OptionalEmployers’ Liability
A legal requirement once you employ any staff, even casual help.
PopularCommercial Combined
Bundle public liability with your other covers into one policy and one renewal date.
How much does loss of licence insurance cost?
There’s no fixed price. It usually sits as a modest addition to a licensed premises policy, priced against your profit, the indemnity period and the kind of venue you run.
Your annual profit
The sum insured reflects the profit the licence earns you, not your turnover.
Claims history
A clean claims record helps keep premiums down at renewal.
The type of venue
A late-night club carries more licensing risk than a village pub.
The indemnity period
How long the policy would pay for, commonly one, two or three years.
Claims and review history
A previous review or warning will be taken into account.
Your compliance record
Training records, refusals registers and a clean inspection history all help.
How to get loss of licence insurance
How to get loss of licence insurance
Getting loss of licence cover takes four steps: tell us about your venue, set your sum insured, compare insurers, and get covered, often the same day.
Getting loss of licence cover takes four steps: tell us about your venue, set your sum insured, compare insurers, and get covered, often the same day.
1
Tell us about your venue
What you run, your hours and who your Designated Premises Supervisor is.
2
Set your sum insured
Your annual profit and the indemnity period you want.
3
We compare specialist insurers
We search our panel of 20+ UK insurers.
4
Get covered and get your documents
Receive your documents, usually the same day.
UK-based specialist advisersAccess to specialist insurersNo obligation, just expert helpTrusted by thousands of businesses across the UK
Trusted by thousands of businesses across the UK
From everyday business insurance to complex specialist cover, our customers trust Insurance Revolution to find the right protection and provide expert support when it matters.
From everyday business insurance to complex specialist cover, our customers trust Insurance Revolution to find the right protection and provide expert support when it matters.
Loss of licence insurance guides
Loss of licence insurance guides
Practical advice on protecting your licence and your income.
Practical advice on protecting your licence and your income.
Loss of licence insurance FAQs
Loss of licence insurance FAQs
Straight answers on reviews, suspensions and what the policy pays.
Straight answers on reviews, suspensions and what the policy pays.
It protects your income if your alcohol licence is suspended, revoked or not renewed, covering lost profit and reasonable costs while you resolve the issue. Most policies also pay for the fall in the value of your interest in the premises.
Still have questions?
Our advisers are here to help you find the right solution.