Licensing requirements for taprooms, tours & tasting rooms

Whether you run a brewery or distillery, securing the correct licence to sell or serve your products on site is essential to operate legally and responsibly. But what exactly is a premises licence, and what does it allow? Below, we’ll cover the licensing requirements you need to know and explore how brewery and distillery insurance can be invaluable for small business owners.

Why consider adding taprooms, tours, or tasting rooms to your brewery or distillery

Adding taprooms, tours, and tasting rooms to your brewery or distillery can transform your business. These offerings have become increasingly popular in recent years, as customers seek authentic, in-person insights into the brewing and distilling processes. Here are some key benefits:

• Community: Create a welcoming space where customers can socialise, host private events, or enjoy tastings.
• Feedback: Facilitate direct interactions with customers, enabling valuable feedback and collaboration.
• Gastro-tourism: Turn your business into a destination for beer or wine enthusiasts.
• Profit: Increase your revenue with minimal investment in additional infrastructure.

The importance of licensing for on-site alcohol sales

Licensing is a legal requirement for selling alcohol onsite in the UK, primarily to protect the public and ensure businesses operate responsibly. Any business, organisation, or individual selling or supplying alcohol must secure the appropriate licence from their local council.

The Alcohol Licensing Act 2003 outlines the obligations for businesses that sell alcohol, provide regulated entertainment, or offer late-night refreshments. If you’re considering expanding your brewery or distillery with taprooms, tours, or tasting rooms, obtaining the correct licence is essential.

Operating without the appropriate licence could result in severe penalties, including:

• Substantial fines.
• Reputational damage.
• Business closure.
• Criminal convictions or prison sentences.

Types of licences for breweries and distilleries

Understanding which licences apply to your business is vital. Here are the main types a brewery or distillery would need if adding tours, taprooms or tastings:

• Premises Licence: Required for businesses selling alcohol for onsite consumption on a permanent basis. Applications are made to local councils and involve public consultation. Engaging with community leaders before applying can help smooth the process.
• Temporary Event Notices (TENs): Ideal for temporary or small-scale events involving alcohol sales, such as pop-ups or weddings. Events lasting fewer than seven days and hosting fewer than 500 people typically require a TEN.
• Personal Licence: Needed by anyone planning to sell or authorise the sale of alcohol. A designated premises supervisor (DPS) must be named on the licence, serving as the primary contact for authorities.
• Licensing for Tours and Tastings: Events involving alcohol as part of the experience, such as wine tastings or brewery tours, require either a TEN or a premises licence, depending on the event size.

Key considerations when applying for a licence

Applying for a licence involves more than submitting a form. You’ll need to:

• Understand local authority guidelines and requirements.
• Conduct a thorough risk assessment to ensure compliance with licensing laws.
• Train staff in responsible alcohol service.
• Address community concerns to avoid objections during the application process.

Local authorities are often protective of residents, so complaints can delay or complicate applications. Ensuring a smooth process requires careful planning and engagement.

Challenges around licensing

Because of the responsibilities associated with safe and legal alcohol sales, there are a myriad of challenges involved in licensing for on-site alcohol sales, and you do need to stay up-to-date with licensing regulations – which can and do change – as you will be responsible for upholding these requirements.

You need to be mindful of public safety, actively prevent public nuisance, crime and disorder, and protect children from harm. You must not sell alcohol below the cost of duty plus VAT or engage in irresponsible promotions, in accordance with the Alcohol Licensing Act 2003 (Mandatory Licensing Conditions) Order 2014. It’s mandatory to supply free drinking water to everyone on your premises and verify the ages of those buying and consuming alcohol.

Should you fail to meet the conditions of your licence, receive multiple noise complaints, engage in disputes with neighbours, or even make an administrative error, the local council can suspend or revoke your licence at any time. The council should however reject any personal disputes brought by competing businesses if they consider them to be frivolous or time-wasting – malicious intent to harm your business without any good reason shouldn’t succeed.

How brewery & distillery insurance can help protect your business

Losing your licence can be financially devastating, but brewery and distillery insurance offers critical support. In addition to covering your brewery if you lose your licence due to circumstances beyond your control, our Premier brewery insurance provides all the essential protection needed to operate your business. This comprehensive package includes covers ranging from employers’ liability insurance to protection against stock deterioration.

Brewery and distillery insurance safeguards against unexpected events, the unique risks of running a brewery or distillery, and the general risks faced by any business. Without adequate cover, small business owners may be personally liable for significant expenses. That’s why having a tailored specialist brewery and distillery insurance package is essential for long-term security and peace of mind, whether you’re running tours or not.

Key insurance options for breweries and distilleries that will be required if you start operating tours, tastings or tap rooms include:

• Public Liability Insurance: Covers claims from visitors or third parties injured on your premises or whose property is damaged.
• Employers’ Liability Insurance: Legally required to protect against claims from employees injured at work.
• Business Interruption Insurance: Provides financial support for loss of profit if your business cannot trade due to flooding, fire, or theft.
• Brewery Tours Cover: Covers liability claims arising from tours, demonstrations, or events.
• Loss of Licence Insurance: Provides financial cover if you lose your licence for reasons beyond your control.

Get tailored insurance for your brewery or distillery

Navigating licensing requirements and protecting your business can be complex, but with the right insurance, you can safeguard your operations and focus on growth. At Premierline, we work with an insurance provider who understands these risks and have created a product, Premier Brewery and Distillery insurance, with specific covers designed to suit the needs of the brewery and distillery industry as standard.

Get in touch with our experts today to ensure your business is prepared for any eventuality.

Call: 0333 320 6009

Request a Call Back