We’re proud to share that Tom Grand, Commercial Insurance Broker at Clarke Dove, has contributed an insightful article in the latest issue of Brewing and Beverage Industries Business magazine.
The article, titled “Insurance Essentials for Distilleries,” explores key considerations for distillery owners, including:
✅ Material Damage
✅ Business Interruption
✅ Goods in Transit
✅ Public & Product Liability
✅ Management Liability
Tom provides expert guidance on how distilleries can protect their operations against risks and ensure comprehensive coverage tailored to their unique needs.
Alternatively please feel free to read on:
The UK Spirits Alliance reports a 273% increase in gin distilleries over the past five years, with spirits now the preferred drink among 18–24 year olds. As a result, more distilleries are seeking insurance. At Clarke Dove, we specialise in insurance solutions for the licensed trade. Here are the key types of cover we recommend for distilleries:
1. Liability Insurance
Public & Products Liability
Protects against legal claims for property damage or bodily injury caused to third parties. While not legally required, it’s often a contractual necessity — whether selling to large retailers or at local markets, fetes etc.
Employers Liability
Legally required if you employ anyone, including volunteers or part-time staff. Covers legal liability for injury or damage to employees.
2. Material Damage
Covers physical assets such as buildings, tenant improvements, contents, and stock. This is essential for business as loss of these items without replacement could cause significant distress and financial impact.
Important: The vast majority of insurers require the stock of spirits to be insured as a separate item from other stock due to its high theft risk. This ensures full coverage in case of loss.
3. Business Interruption
Covers loss of income due to an insured Material Damage loss, such as fire, flood, or lightning damage. If operations are halted or reduced, this cover helps maintain financial stability which is vital to ensure business continuity until such a time that the business is back to previous earning levels.
Tip: The most commonly found indemnity period (how long the insurers keep paying such a claim) is 12 months, but we recommend extending to 24 or 36 months to ensure adequate earnings recovery time.
4. Goods in Transit & Cargo
Distilleries often ship products nationwide and internationally. With the growth of British distilleries, and the demand for British products outside the UK, cover for goods whilst in transit to their destination is crucial for any distillery selling their product.
- Goods in Transit: Covers UK shipments.
- Cargo Insurance: Covers international shipments.
With growing global demand for British spirits, this cover is vital.
5. Management Liability
In today’s litigious environment, legal risks can arise from regulators, government bodies, or business partners.
Management Liability Insurance includes:
- Directors & Officers Liability
- Corporate Legal Liability
- Employment Practices Liability (e.g. wrongful dismissal claims)
- Crime & Employee Dishonesty Cover (protects against fraud or theft by staff or third parties)
Many commercial insurers include standard legal expenses cover within policies, however, by comparison this has limitations, such as requiring a 51% chance of success before defending a claim (known as a ‘prospects of success’ clause). Management Liability offers broader protection, which is why we would recommend this in preference, or in addition to, legal expenses.