Loss of licence cover: the one policy add-on landlords forget
It's not glamorous and it's rarely claimed on — but a pub without its premises licence is a very expensive building. Here's why loss-of-licence cover earns its place on the schedule.
By Tapwell editorial
Ask a landlord what would put them out of business tomorrow and the answers are usually fire, flood, or a really bad Tripadvisor review. Very few say 'losing the premises licence' — but of the three, the licence review is the one insurance can least easily replace.
What loss-of-licence cover does
Loss of licence insurance pays out when a premises licence is refused, forfeited or suspended through no fault of the licensee — for example, on a change of law or a technical procedural failure. It typically covers the reduction in value of the premises as a going concern, up to a set limit (Tapwell schemes carry up to £100,000).
What it doesn't do
- It does not cover licence loss caused by the licensee's own misconduct — repeated underage sales, serious breaches of licensing conditions.
- It does not replace lost trading profit — that's what business interruption cover is for.
- It does not pay legal costs of defending a review — legal expenses cover does that.
The three sit together. A well-built pub policy has all three lines on the schedule, sized to the actual value of the business. If yours doesn't, that's a five-minute conversation worth having.