Work In A Volatile Industry? Insure Yourself Against Loss Of Licences

Sometimes your business or profession requires that you have a licence in order for you to keep working in your sector. This means that if you lose your licence, your business or your livelihood will be seriously impacted and in the worst-case scenario, completely finished.

Luckily you can be insured against losing your licence with loss of licence insurance. So if you work in a volatile industry you can be protected against this most serious of risks.

Which licences can be insured?

Many different types of licences can be insured. Let’s look at the most common examples.

Aviation licences

Loss of licence insurance provides you with financial support should you lose your aviation licence and be forced to give up your profession. It is ideal for all industry professionals including helicopter pilots, charter pilots, test pilots and more.

Cover is also available for commercial flight crew who need licences in order to fly and who will be impacted by loss of their licence. You can lose your licence in a variety of ways but in general the most common is failing a medical. Once this happens your flying career is over.

Losing your aviation licence can be devastating for personal and financial reasons. If you have aviation loss of licence insurance, you can get your life back on track with retraining or starting a new profession without jeopardising your standard of living.

Alcohol Licences

Alcohol premises need a licence in order to sell the public. Yet, because of the challenges in the hospitality industry, a licence may be revoked or not renewed for a range of reasons and it may not be your fault.

These may include public safety, sale of alcohol to underage customers, drug issues, crime and disorder, and local complaints about your establishment.

Restaurants, pubs and clubs rely on their alcohol licences because the sale of alcohol is generally a major part of your business. Loss of alcohol licence insurance covers your business for loss of sales. You can take this out as a standalone policy or include it as an extension of your standard business insurance. Whatever option you choose, it is important to be covered for loss of licence should your livelihood rely on it.

Driving licences

If your business relies on you having a driving licence you can get insurance to cover the risk of losing it. So if you are a driving professional such as an HGV driver, driving instructor or a cab driver, loss of licence insurance offers you protection, if you can no longer carry out your line of work.

Licences to trade

Many specialised business activities require a licence to trade and these include:

• Taxi companies
• Dog breeders
• Businesses that involve selling or hiring out animals
• Events companies
• Food outlets and hotels
• Tattooists or body piercing services
• Child minding or child care

If your business relies on your maintaining your licence, business insurance that offers loss of licence protection will help protect you from loss of earnings should your licence be revoked.

Licences For Beauty Treatments

Beauty salons need a licence in order to carry out some beauty treatments such as hairdressing (although this one is optional), tanning, tattooing, piercing and hair removal, as well as spa treatments such as massage and other therapies.

All these licences can be insured against loss so it does offer security to anyone who would be impacted by losing their licence.

Other relevant licences which can be insured

The easiest way to find out whether you need a licence to trade in your chosen profession is to use the Government Licence Finder Tool. That way you can see exactly which licences you may need.

If your livelihood depends upon your retaining your licence, you can insure against the risk with specialist loss of licence policy.

What Is Income Protection Insurance?

Personal Income protection insurance is there to protect you if you can’t work due to illness or disability. In general it will pay you around 2/3 of your usual income and this will continue until your recover and go back to work or retire.

This is a good option for individuals who need to protect their homes and families as it ensures an income if you are unable to work.

Business income insurance is more comprehensive. This covers you from financial loss from business disruption and includes many different scenarios.

These can include natural disasters, loss of money due to theft, as well as cover if your business is forced to stop trading because your utilities are disrupted, and cover if your supply chain is impacted.

Insurers offer specialist business income insurance cover that is tailor made for your type of business so will identify and indemnify against likely risks.

Income protection insurance does not cover you for loss of licence protection. However some insurers will add loss of licence cover as an extension to your business insurance.

It is important to remember that this is not standard so it is important to check through your terms and conditions before you need to make a claim. Contact Brisco Business for more information about income protection insurance this cover.

Which is Right For Me, Loss of Licence Insurance or Income Protection Insurance?

If your business would collapse without the relevant licence such as your aviation licence, alcohol licence or driving licence, it makes sense to take our loss of licence insurance as necessary protection.

However, it doesn’t make sense to pay for loss of licence protection if you don’t need it. So, if your licence is not key to your business, income protection licence will probably be sufficient.

Remember that many insurers can add licence protection to your business income protection insurance.

In conclusion

Loss of licence cover is not necessary for all businesses or professions. However if your livelihood relies on your having a professional licence, you do need to protect yourself against the risk of losing it.

To decide, ask yourself how you or your business would cope if you lost your licence?

If it would be catastrophic to your livelihood to have your licence withdrawn or revoked, you should definitely insure yourself against loss of licences.

Remember that this is not a standard clause in income protection insurance so speak to Brisco Business, if you have any questions.

Many specialist business insurers can add loss of licence cover to your existing business insurance policy. But unless you specifically ask for this or take out loss of licence cover yourself, you will not be covered should you lose your licence.

Darragh Timlin

With over 25 years’ experience, Darragh is an expert in all things insurance. Starting his career in commercial property underwriting, Darragh has worked for a number of global insurers and is now Managing Director of Brisco Business, part of the wider Henry Seymour Group.

All articles by Darragh Timlin