Common risks of running a brewery

Running a brewery comes with a wide range of risks, from equipment failure and supply chain challenges to the inherent risks of alcohol consumption, if you run tastings or taprooms on-site. Making sure your business is protected with brewery and distillery insurance gives you peace of mind, allowing you to focus on what you do best – brewing great beer.

Anyone in the food and drink industry knows the value of being covered when things go wrong. Whether it’s exploding bottles, transportation damage, or customer injury, the right business insurance can protect your brewery from costly setbacks.

Inventory loss

For breweries and distilleries, the product is everything, so keeping your brew safe should be a priority. Security measures like cameras, alarms, and sprinkler systems help reduce the risk of theft, fire, or damage. But if inventory is lost, contents and stock insurance can help your business recover financially.

For more severe incidents, such as fire or break-ins that damage the premises itself, business buildings insurance ensures you’re covered too.

Transportation risks

Running a craft brewery or distillery means your product is typically packaged in glass bottles, or cans, which makes it prone to breakage during transit. With Goods in Transit Cover, your product is protected from the moment it leaves your brewery until it reaches its destination, reducing financial losses from the risk of damaged stock.

Exploding bottles

Bottle explosions are surprisingly common in brewing. A mix of yeast activity, external pressure (such as heat), and glass weakness can lead to bottles bursting, resulting in both product loss and potential injury to staff or third parties. Having the right coverage in place – such as employers’ liability insurance and public liability insurance – ensures that such mishaps don’t take a toll on your finances.

Spoiled product

Contamination, mislabelling, or unexpected spoilage can lead to entire batches needing disposal or recall, which can be a real setback to your business. In such cases, you’d have to notify suppliers and customers and absorb the cost of lost stock.

With deterioration of stock cover – included in our Premier brewery and distillery insurance – businesses can offset these losses, helping to safeguard their bottom line.

Equipment failure

From kegs and coolers to bottling lines and fermenters, breweries and distilleries rely on a range of equipment. If machinery breaks down, the financial impact can be severe, not just from repair costs but also from spoiled batches and production delays.

Including equipment breakdown cover and business interruption insurance in your policy helps cover repair costs, lost stock, and the revenue impact of downtime.

Safety risks

Like any workplace, breweries have a duty of care to their employees. While training and health and safety protocols can reduce risks, accidents still happen. Breweries rely on heavy machinery, including steam boilers, keg fillers, grain hoppers, augers, and mills, all of which pose serious hazards if not properly managed. Even walk-in coolers and forklifts present risks to both employees and stock.

With the potential for serious workplace injuries, Employers’ Liability Insurance is not only a legal requirement for businesses with employees but also essential protection for breweries. It ensures that if an employee is injured while working with hazardous equipment, your business is covered for legal costs and compensation claims.

Risks of taprooms & tastings on site

If your brewery operates a taproom or hosts tastings, additional risks must be carefully managed. As a brewery owner, you are responsible for ensuring alcohol is served responsibly, as overserving customers can lead to accidents, injuries, or liability claims.

Public liability insurance provides essential protection, covering legal costs and compensation if a customer is injured on your premises or as a result of your product.

Additionally, if your alcohol licence is revoked due to circumstances beyond your control, our specialist brewery insurance package can cover the financial impact and assist with the costs of reapplying for your licence, helping your business recover smoothly.

The impact of climate change on crops

With hotter, drier conditions in the UK, hops – one of beer’s essential ingredients – are at risk. Climate change is already affecting:

• Hop yields, making sourcing ingredients more expensive
• Flavour profiles, impacting the consistency of craft beer
• Supply chain disruptions, leading to shortages

For breweries, climate resilience planning is increasingly important, and having comprehensive business insurance ensures financial stability during unpredictable challenges.

Protecting your brewery with the right insurance

Running a brewery comes with complex risks, but with our tailored brewery and distillery insurance, your business can continue to grow and thrive, without the fear of unexpected financial setbacks.

Get expert advice today. Our team specialises in comprehensive insurance for breweries and distilleries, ensuring your business is fully protected against industry-specific risks.

Contact us today to find the right cover for your brewery and enjoy peace of mind while doing what you do best, brewing great beer.

Call: 0333 320 6009

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