Cover your distillery. Raise your spirits.
Businesses in the craft beverage industry, particularly distilleries, face unique risks like equipment breakdown, product contamination and liquor liability claims. That’s why insurance coverage that’s tailored to the specialized nature of your distillery business is a necessity. Whether you manage a distribution distillery, a micro distillery or a craft distillery, or you produce rum, bourbon, vodka or whiskey, having the right insurance is crucial to protecting your operations.
Because our insurance solutions are brewed for success.
Our team of seasoned risk management and insurance professionals with specialized industry knowledge offers tailored coverage options and in-house risk management solutions to address your distillery’s unique risks. We work alongside national insurance carriers to help you find the best insurance policy for your needs, budget and scope of operations.
Hear from our practice leader Patrick O’Daniel on the trends, risks and coverages that entrepreneurs in the distilling industry should keep in mind when choosing an insurance broker.
Distilleries require a variety of insurance coverages to address the unique risks associated with their operations. Some key coverages in a distillery insurance program include:
General liability insurance is a key coverage for distilleries, as it protects against third-party claims and lawsuits related to bodily injury, property damage and personal and advertising injury. A sound general liability policy offers your distillery protection against potential financial losses from slip and fall accidents, product-related issues and other operational risks.
For distilleries, equipment breakdown insurance is indispensable because it covers the cost of repair or replacement of equipment damaged due to mechanical or electrical failure. This type of insurance can help protect your business from financial losses resulting from equipment breakdowns, which could disrupt production and potentially lead to product contamination.
Safeguarding your business assets like buildings and inventory is the key role of commercial property insurance for distilleries. With this form of insurance coverage, your distillery can be properly compensated in the event of a loss, and you can avoid potential penalties and sufficiently cover your products.
Commercial auto insurance provides liability and physical damage protection for vehicles used for business purposes. In the event of an accident involving a business vehicle, this type of insurance can cover legal bills, medical expenses and property damage.
Workers’ compensation insurance is a key coverage for distilleries, as it can provide wage replacement, medical benefits, lost wages and other benefits for employees who have sustained injuries or illnesses in the workplace. Workers’ compensation is essential; without it, your distillery business may face lawsuits from injured or ill employees and government-imposed fines.
Liquor liability insurance can help defend your business against lawsuits related to alcohol consumption, such as those arising from bodily injury or property damage that occurs from an individual being served alcohol at your distillery. In many states, dram shop liability laws hold businesses that serve alcohol liable for injuries caused by intoxicated patrons, making liquor liability coverage crucial to protect your business.
Product recall insurance is a significant coverage for distilleries. It covers expenses related to recalling defective products posing serious health risks or dangers to users. This type of insurance can provide coverage for recall and replacement costs, brand rehabilitation, crisis consulting and customers’ economic loss.
Protecting against losses from spoiled or contaminated products is the essential role of spoilage and contamination insurance for distilleries. This type of insurance provides coverage for losses like loss of inventory, loss of income, and additional expenses incurred to replace or repair the affected products.
Risk management plays a vital role in the success of distilleries. By identifying, assessing and mitigating risks, distilleries can reduce equipment downtime, enhance product quality and improve employee safety. In addition, effective risk management can provide various financial advantages for your distillery business.
With a Higginbotham risk management specialist on your side, you don’t have to navigate the complexities of the distilling industry alone.
With industry knowledge and specialized expertise, Higginbotham’s risk management specialists are dedicated to helping distilleries protect their operations against potential losses. We begin with a risk analysis to determine the exposures and risks your distillery faces. Then, we help you develop risk management strategies to mitigate these risks, along with securing adequate insurance coverage to protect your business. With our team by your side, you can focus on crafting exceptional spirits and growing your business.
Learn why Bardstown Bourbon trusts Higginbotham to mitigate their risks, protect their operations and keep their business brewing.
Patrick O’Daniel has over 30 years of experience in commercial property and casualty insurance and risk management. In that time, he’s worked with clients from an array of industries, including manufacturing, brewing, architecture and engineering, construction and public entities. Patrick has also developed a reputation as a risk management and insurance leader in the distilled spirits industry.
Patrick combines industry experience and specialized knowledge with an emphasis on superior customer service and strong client relationships. His areas of specialty include liability coverage, large property placements, workers’ compensation, liquor liability insurance, risk management, contract review, loss control and alternative loss funding, including captives, large deductibles and self-insurance.
Patrick earned a Bachelor’s degree in economics from the University of Louisville and holds a Certified Insurance Counselor (CIC) designation.
Protecting your spirits business starts with partnering with a distillery insurance specialist. At Higginbotham, our team works with you to develop a customized insurance program tailored to your unique needs, helping protect your business from potential risks and losses.
With Higginbotham’s industry knowledge and commitment to exceptional customer service, you can have peace of mind knowing your distillery is in good hands.