Distillery Insurance: Protecting Your Craft

As a distillery owner, you're passionate about crafting unique spirits and beverages, but along with your artisanal creations come unique risks. Distilleries face a variety of challenges that can put your business at risk, making insurance a crucial aspect of your operation.

At Midland, we have been providing tailored insurance cover to Australian distilleries for over 10 years. Over that time, we've developed and curated unique distillery insurance programs that allow us to tailor a policy specifically to your business' needs.

You can also download our Distillery Fact Sheet here. This document provides some simple facts about insurance for distilleries, things to think about when starting a new distillery and how they'll impact your insurance premium.

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Five Of the Unique Points Of Our Distillery Insurance Program Include:

Cover for stock losses resulting from spoilage, leakage and/or contamination

Stock cover automatically includes alcohol

Cover for excise duty where it cannot be recovered from the tax office after loss

Discounts off standard premium rates

Cover for food service, bar service, and tastings and tours of your facility (if required)

Specialist Industries

We are a full-service insurance brokerage for distilleries of all sizes. This means we can provide you with a full analysis and review of your operation, meet with you face to face, clearly explain all aspects of your policy, and even manage your claims.

Understanding the Unique Risks of Distillery Operations

Running a distillery operation presents several unique risks due to the combination of intricate processes, specialised equipment, and the production of alcoholic beverages. These risks can have significant financial, legal, and operational implications. Here are some of the unique risks associated with distillery operations:

Operational Risks

Fire hazard
Equipment Breakdown
Product Contamination
Alcohol Theft
Business Interruption
Environmental Concerns
Worker Safety
Supply Chain Vulnerabilities

Legal and Financial Risks

Product Liability
Regulatory Compliance
Property Damage
Business Interruption
Product Recall

Coverage Included in Distillery Insurance

When you choose distillery insurance, you'll have access to a range of coverage options tailored to your specific needs. Coverage may include:

Property Insurance

This provides coverage for your distillery's physical assets, including buildings, distillation equipment, tanks, barrels, and inventory. It typically covers losses due to fire, theft, vandalism, and natural disasters.

Business Interruption Insurance

This coverage is designed to compensate for lost income when distillery operations are disrupted due to covered events, such as equipment breakdown, property damage, or a fire.

Product Liability Insurance

Distilleries can face product liability claims if their products are found to be defective or harmful. This coverage helps protect against legal claims related to product defects and their consequences.

Public Liability Insurance

This provides protection in the event of third-party injury or property damage claims arising from distillery operations or products. It covers legal expenses and potential settlements.

Equipment Breakdown Insurance

Distilleries rely on specialised equipment. Equipment breakdown coverage helps cover the cost of repair or replacement of essential distillation machinery if it fails or is damaged.

Product Recall Insurance

If a product recall becomes necessary, this coverage helps cover expenses related to the recall process, including notifying customers, retrieving products, and addressing public relations issues.

Liquor Liability Insurance

This is specific to the distillery industry and covers liability claims related to the distribution and consumption of alcoholic beverages. It's particularly important if your distillery has a tasting room or conducts events.

Contamination and Spoilage Coverage

This coverage helps protect against financial losses resulting from contamination or spoilage of raw materials or finished products, which could lead to significant waste and damage to your brand.

INSURANCE COVERS

It's crucial for distillery owners in Australia to work with an experienced insurance broker who understands the unique risks of the industry and can help tailor a policy to your specific needs. The coverage limits, deductibles, and premiums can vary based on the size and scope of your distillery, location, and other factors.

Why Choose Midland As Your Distillery Insurance Provider?

Choosing the right insurance provider is vital to ensure adequate coverage and support for your distillery. Here's just a few of the services we offer to our clients:

1. Expertise

We work with insurance providers that specialise in distillery insurance, and we have a deep understanding of the intricacies and unique risks associated with your distillery business

2. Risk Assessment and Mitigation

We can help you assess and understand the potential risks your distillery faces, and can provide advice on risk management strategies to minimise potential risks and losses.

3. Customised Coverage

We've developed custom insurance programs that can be adapted to your distillery's size, operations, and unique traits, ensuring all aspects of your business are covered.

4. Objective Guidance

We work for you, not the insurance companies. We provide objective advice and are motivated to find the best insurance solutions for your specific needs. We offer guidance based on our extensive knowledge of the insurance industry, helping you make well-informed decisions.

5. In-House Claims Team

In the event of a claim, we act as your intermediary between you and the insurance company. We ensure that the claims process is smooth, efficient, and that you receive the compensation you're entitled to.

Contact Midland Today

Whether you run a craft distillery or a large-scale production facility, securing the right insurance is not only a smart business decision but a crucial step in safeguarding your passion and livelihood. With the comprehensive coverage options available through our unique distillery insurance programs, you can protect your assets, reputation, and financial stability, ensuring that your craft remains uninterrupted.

Contact Midland today to discuss your distillery insurance needs. We specialise in tailoring policies to meet the unique challenges faced by distilleries, and we're here to support you every step of the way.

Midland Insurance Brokers are proud members and sponsors of the Australian Distillers Association, Spirits Victoria, and the WA Distillers Guild.