These case studies show the impact of a licensing dispute and why Licence Protection is essential for licence holders. Music, Drinks and Entertainment licence holders all require a specific policy add on to stay protected in the event of a licence dispute.
Background – What Happened and Why?
At this live music venue, a high profile performer was giving a concert, when a large crowd of people without tickets attempted to force entry into the venue. As a result of the surge, the front doors gave way, and the crowd pushed into the foyer area which tragically led to two fatalities.
Initial reports and CCTV footage suggested there were crowd control failures, possible overcrowding, and that security arrangements may have been inadequate.
Impact – What Action Did the Licence Authorities Take?
Following the incident, the police submitted a request to the local council for an interim licence suspension which was granted shortly thereafter, essentially shutting down the venue.
The police called for a full licence review, citing concerns about the venue’s management, security protocols, and risk assessment practices. The venue was placed under intense scrutiny, with public and political pressure mounting to ensure accountability and prevent future tragedies.
Actions – What Did the Venue Do to Protect Its Licence?
In order to regain the trust of authorities and the public and secure the reopening of the venue, the venue took a series of remedial actions:
- Submitted a comprehensive safety improvement plan, including crowd control revisions, entry procedures, and emergency response upgrades.
- Invested heavily in new security measures, such as enhanced CCTV, revised stewarding protocols, and electronic ticketing controls.
- Committed to implementing external safety audits and working with independent experts on event risk management.
- Recruited new specialist security personnel and retrained existing staff.
- Engaged legal support to represent the venue during the licence review process.
The cost of taking remedial action, security upgrades, and lost revenue are likely to have run into the hundreds of thousands. There will also be a significant amount of stress and personal impact on the venues owners and staff.
Outcome – What Was the Outcome of the Licencing Decision?
Following the improvements made by the venue, the licence was reinstated. The reinstatment however is subject to strict licensing conditions, including:
- A test period for the new crowd management procedures.
- A cap on ticket sales.
- Enhanced security staffing requirements and regular reporting to the council.
- Provisions for real-time oversight during events by licensing officers and police.
The venue resumed operations cautiously, under close scrutiny, with ongoing reputational damage and significantly increased operational costs due to compliance with the licensing restrictions.
How Would Licensecure, the licence insurance policy, have protected the venue and reduced its costs?
With Licensecure, NDML’s Licensing Legal Protection Insurance Product, the venue would have recieved critical financial and legal support to the venue in several key areas. Benefits include:
- Legal Representation Costs – Cover for solicitors and legal teams during the licensing review and hearings, which can be substantial.
- Appeal Support – Funding for appeals against licence suspension or conditions.
- Reputational Risk Management – Support for crisis communication services to manage the intense media and public scrutiny.
- Staff support – Assistance in providing counselling for staff members involved in handling the fatalities.
- Director & Officer protection – Support in defending senior management of the venue against criminal investigations.
Had this venue held such a policy, it could have mitigated financial losses, accelerated compliance efforts, and reduced the burden of legal proceedings, allowing management to focus on operational and safety improvements.
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