Brewers & distillers insurance

Why specialist cover matters for UK producers

Brewing and distilling are hands-on, capital-intensive trades. You rely on key equipment, careful temperature control, dependable suppliers, and a valid alcohol licence. When one link fails, production and cashflow can suffer. That is why specialist brewers and distillers insurance exists - to protect against risks that standard business policies often miss, such as stock deterioration, loss of licence, contamination, and machinery breakdown.

Across the UK, smaller producers have grown rapidly, with most operating on tight margins and variable demand. While draught duty saw a small cut in 2024, overall pressures remain: energy-intensive kit, wage increases, and inflation-linked duties for many products. This environment has strained finances and, in some regions, contributed to brewery closures. For many, resilience now depends on a clear risk plan backed by fit-for-purpose insurance.

The right policy brings together core protections - public and product liability, buildings and contents, employers’ liability, and business interruption - with sector-specific options like specialist flood cover for vulnerable sites or breakdown cover for brew kettles, fermenters, and stills. Microbreweries and craft distilleries particularly benefit from tailored wording that reflects small-batch processes from mash to bottling. Guidance from UK bodies, including the Chartered Institute of Brewers and Distillers, also underlines the need for strong governance and risk controls across operations.

Good insurance is not about selling cover. It is about making sure you can keep brewing tomorrow if something goes wrong today.

Make sure your policy matches your production scale and risk profile.

What is covered and how claims typically work

Most specialist policies combine general business protections with industry-specific covers. Public and product liability respond if a visitor is injured on site or a customer alleges harm from a product. Property cover protects buildings, fixtures, and equipment, while stock cover can extend to raw materials, work in progress, finished beer or spirits, and goods in transit. Business interruption can replace lost income after an insured event, such as a fire or flood, while equipment breakdown addresses sudden mechanical or electrical failure of critical machinery. Many policies offer options for stock deterioration following refrigeration failure, contamination from cleaning agents, and loss of alcohol licence where legally insurable.

Typical exclusions include gradual wear and tear, poor maintenance, deliberate acts, and certain types of contamination not specifically listed. Some flood-prone sites may need higher excesses or special terms. Claims generally start with immediate notification to the insurer, steps to prevent further damage, and evidence gathering - invoices, photos, maintenance records, and production logs. For example, if a fermenter fails and ruins a batch, an equipment breakdown or deterioration extension may respond to repair or replace the machine and cover the value of lost stock, subject to limits and deductibles. If a storm damages the roof and halts production, property cover and business interruption work together, often after a waiting period.

Always check how your sums insured are set. Underinsurance can reduce payouts. If you grow capacity or change product mix, update your policy promptly.

Who benefits most from this cover

This insurance suits UK breweries and distilleries of all sizes, including microbreweries, taprooms with small-scale production, contract brewers, and craft distilleries. It is particularly helpful where equipment is mission-critical, where on-site sales and tours occur, or where cold chain integrity is essential. Producers using higher-strength products or experimenting with barrel ageing may benefit from enhanced stock and storage cover.

It may be less necessary for businesses that do not manufacture - for example, a bottle shop or bar without production may not need specialist machinery or deterioration cover, though standard commercial insurance and liability protection still apply. If you have minimal equipment and outsource the entire process, a lighter policy may be enough, provided supplier contracts and product liability responsibilities are clear.

Cover levels and optional extras explained

1. Essential manufacturer cover

   • Core protections: public and product liability, employers’ liability, contents and equipment, basic stock, and goods in transit.
   • Suited to start-ups and microbreweries needing foundational cover without high limits.
   • Consider adding deterioration of stock if you rely on chilled storage.

2. Standard producer package

   • All essentials plus business interruption, equipment breakdown, and broader stock cover (raw materials to finished goods).
   • Good for established breweries and distilleries with regular production schedules and taproom or tour activity.
   • Often includes legal expenses cover for contract disputes and regulatory issues.

3. Comprehensive site and operations

   • Higher limits across property, stock, and interruption, with options for flood-prone sites, contamination, product recall, and loss of licence where available.
   • Designed for producers with significant capital equipment or multiple premises.
   • May include cyber cover for connected sensors, EPOS, and online sales.

4. Optional add-ons to consider

   • Deterioration of stock from refrigeration failure or power outage.
   • Product recall to manage withdrawal costs and brand protection.
   • Specialist flood cover where mapping indicates heightened risk.
   • Loss of alcohol licence where insurable, recognising strict conditions.
   • Seasonal stock increases ahead of festivals or peak trading.
   • Equipment breakdown for brew kettles, fermenters, bottling or canning lines, and stills.
   • Extended business interruption for supplier failure and access issues.

Pricing and what shapes your premium

These are general trends, not guarantees. Insurers rate each business on its individual risk profile, underwriting data, and cover selections.

Who can apply and common restrictions

Most UK breweries and distilleries operating within UK law can apply, from micro-producers to larger sites. Insurers usually ask for details of premises construction, security measures, stock levels across the year, and equipment lists with values. You will typically need to confirm HACCP or equivalent hygiene controls, maintenance schedules for key machinery, and refrigeration monitoring. Where a premises licence and personal licences are required, insurers may ask for status and any history of enforcement action.

Common reasons for decline include undisclosed prior insolvency, multiple unspent criminal convictions, significant outstanding health and safety issues, or inadequate risk controls for known exposures such as flood or flammable solvents. Very high accumulated stock values in older buildings without upgraded protections can also attract special terms or higher excesses. Being transparent helps insurers set appropriate cover and speeds up claims later.

Getting covered in simple steps

1. Gather basic details - people, premises, turnover, equipment, stock levels.
2. Map your risks - processes, cold chain, tours, and supplier dependencies.
3. Request quotes - like-for-like limits, deductibles, and interruption periods.
4. Compare wording - check inclusions, exclusions, and any special conditions.
5. Finalise sums insured - buildings, kit, and seasonal stock fluctuations.
6. Purchase cover - set start date, pay premium, and receive documentation.
7. Maintain records - maintenance logs, temperature data, and staff training.
8. If loss occurs - notify promptly, mitigate, and provide evidence for assessment.

The upsides and trade-offs

Key checks before you buy

Take time to read the schedule, endorsements, and full policy wording. Confirm your excesses, any average clause for underinsurance, and limits for stock at different stages - cold store, barrel ageing, and goods in transit. Note waiting periods for business interruption and temperature-related losses. Check whether contamination is named-peril or all-risks within the policy’s scope. Review renewal pricing and claims conditions, including evidence required for refrigeration monitoring and maintenance. If you plan capacity increases or contract production, update sums insured and indemnity periods so your cover can keep pace with the business.

Alternatives and related protection

1. Standard commercial combined insurance - for wholesalers or bars without manufacturing. Suitable when you do not operate brewing or distilling equipment.
2. Product recall insurance - for businesses with broader distribution or export exposure where withdrawal costs could be significant.
3. Cyber insurance - where online sales, connected sensors, or booking systems are mission-critical.
4. Trade credit insurance - helpful if a large proportion of sales are on invoice to pubs or retailers.
5. Machinery breakdown-only policies - a narrower option when other covers are already arranged.

Frequently asked questions

Q: Do I need specialist insurance if I brew under contract at another site? A: You still need liability cover for your brand and any staff, but you may need less equipment and property cover. Check contracts to see who carries the manufacturing and product liability risk.

Q: Is loss of alcohol licence always covered? A: Not always. Some policies offer limited cover for loss of licence due to certain events outside your control. Breaches of law or regulatory failings are typically excluded. Read the conditions carefully.

Q: How long should my business interruption indemnity period be? A: Many producers consider 12 to 24 months. Think about lead times for equipment, planning permissions, and reconditioning barrels. Choose a period that reflects realistic rebuild and recovery timelines.

Q: Are floods insurable for high-risk locations? A: Often yes, but terms vary. You may face higher excesses, specific conditions, or require additional protections like flood barriers. Specialist flood cover may be available for some sites.

Q: What evidence helps a deterioration of stock claim? A: Temperature logs, maintenance records for refrigeration, stock records, and incident reports. The clearer your documentation, the quicker the assessment and settlement can be made.

Q: Will membership of a trade body help? A: Industry membership can support good governance and risk management. Some insurers may view it positively, but it does not guarantee lower premiums or acceptance.

What to do next

If this sounds relevant, gather your business details and map your risks. Compare a few like-for-like quotes, focus on wording differences, and make sure sums insured reflect today’s costs. Take your time, ask questions, and only proceed when you are confident the cover fits how you actually operate.

Important note

This guide is general information, not personal advice. Every insurer uses different terms, limits, and exclusions. Always read your policy wording and schedule carefully and consider professional guidance if you are unsure.