Insurance for brewers and distillers: our top 7 tips to mitigating risk

1. Fire, explosion and property safety

• Fire safety – review your current fire prevention and control methods such as sprinkler systems, fireproof storage for flammable materials and regular safety drills for employees
• Maintenance matters – conduct routine inspections and keep the maintenance of critical equipment (e.g., distillation tanks, boilers) up to date to help prevent malfunctions
• Emergency planning – develop and practice a comprehensive emergency response plan, including evacuation procedures and containment strategies in case of spills, fires or explosion.

2. Reducing product liability and recall

• Quality control – implement robust quality assurance systems and protocols, such as batch testing for contamination and enforcing stringent hygiene standards during production
• Product recall action plan – establish a product recall management plan with clear steps for identifying your affected products, communicating with retailers and consumers and handling logistics
• Keep compliant – work with regulatory consultants to ensure all labelling and certifications meet domestic and international standards, reducing the risk of legal claims.

3. Addressing supply chain risks

• Supplier diversification – source raw materials and packaging from multiple vendors to reduce dependency on a single supplier. This creates resilience in case of shortages or disruptions
• Stockpile essentials – consider keeping a safety stockpile of key materials and equipment such as barley, hops, and glass bottles to provide a buffer in the event of supply shortages or delays
• Collaborative contracts – establish long-term agreements with suppliers to secure consistent pricing and availability, particularly for critical inputs like high-quality malt barley or yeast.

4. Minimising reputational risk

• Sustainability – use your website and social media channels to publicly commit to sustainability initiatives, such as reducing carbon emissions and using eco-friendly packaging, to appeal to environmentally conscious consumers
• Clear, proactive communication – address incidents such as product recalls quickly and transparently through social media and press releases to mitigate long-term brand damage.

5. Look after your employees

• Safety training – provide regular training for employees on the use of equipment, handling chemicals, and responding to emergencies
• Attract and retain staff – offer competitive salary and benefit package to attract and retain skilled individuals, especially in rural areas or where there are competitors nearby and labour shortages are a challenge.

6. Manage your cyber risk

• Review your cyber safety protocols – use firewalls, multi-factor authentication, and enable regular system updates to protect sensitive data
• Staff awareness – carry out regular training for your employees on how to recognise phishing emails, dodgy links and downloads and other cybersecurity threats
• Data management – keep regular, secure backups of critical business data to enable a quick recovery in the event of a cyber-attack.

7. Have the right insurance in place

• Seek specialist advice – work with an insurance broker who understand the brewing and distilling industry to ensure the cover you have is tailored for the risks that are specific to your business, such as product recalls or aging stock loss.
• Environmental cover – make sure your insurance includes cover for pollution liability in the event of environmental damage from spills or waste discharge
• Protecting your product – ensure that your finished or maturing stock is adequately insured
• Flood risk – consider parametric insurance which provides payouts based on predefined triggers and can help provide flood insurance cover where your main provider has excluded it or imposed a hefty excess amount.

Next steps

Implementing these strategies can significantly reduce the risks your business is exposed to and provide protection from financial and operational disruptions.

If you’d like to find out more about how Partners & can support your brewery or distillery business, talk to our team of experts today.