What Is Brewery Insurance?

Brewery Insurance is a commercial insurance arrangement designed to protect brewing businesses against specified property, liability, manufacturing and operational risks.

Policies may combine buildings, contents, stock, machinery, public liability, products liability, employers’ liability and business interruption cover.

Additional protection may be appropriate for equipment breakdown, product contamination, product recall, goods in transit, cyber risks and brewery taprooms.

The appropriate insurance depends on your brewing processes, production volumes, premises, equipment, distribution arrangements and the customers you supply.

Insurance for Different Types of Breweries

Breweries vary considerably in size and operation. Insurance should reflect the way your business produces, stores, distributes and sells its products.

Contract brewing arrangements and shared premises can create important questions about ownership, responsibility for stock and equipment, and contractual liability.

What Does Brewery Insurance Cover?

A brewery insurance package can combine several types of protection depending on the business’s activities and risk profile.

Not every policy includes all these covers automatically. The appropriate combination depends on your business and the insurer’s terms.

Brewery Equipment and Machinery Insurance

Specialist brewing machinery can represent a substantial investment, and damage or failure may disrupt production.

Depending on your brewery, equipment may include:

• Brewhouses and mash tuns.
• Fermentation vessels.
• Conditioning and storage tanks.
• Boilers and heating equipment.
• Pumps and pipework.
• Chilling and refrigeration systems.
• Filtration equipment.
• Canning, bottling and kegging machinery.
• Cleaning and sterilisation equipment.
• Other specialist production machinery.

Property insurance may cover specified insured damage to machinery, but mechanical or electrical breakdown is not necessarily included.

Equipment Breakdown Insurance may provide protection for certain breakdown incidents, subject to policy terms and exclusions.

Businesses relying on a small number of critical machines should also consider how long it would take to repair or replace them.

Brewery Stock Insurance

Breweries can hold substantial values of raw materials, beer in production and finished products.

Stock Insurance may provide protection against specified insured events affecting:

• Malt, hops, yeast and other brewing ingredients.
• Beer undergoing fermentation or conditioning.
• Finished beer in tanks, kegs, bottles or cans.
• Packaging materials.
• Other insured business stock.

It is important to understand how the policy values raw materials, work in progress and finished goods.

Ordinary deterioration, contamination, spoilage or temperature-related losses should not be assumed to be covered unless the policy specifically provides protection.

Brewery Contamination and Spoilage Insurance

Contamination and spoilage can be significant risks for breweries, particularly where a production issue affects an entire batch.

Affected beer may need to be disposed of, replaced or withdrawn from sale.

Potential causes of loss can include:

• Microbiological contamination.
• Failure of cleaning or sterilisation processes.
• Temperature control problems.
• Equipment malfunction.
• Accidental introduction of unwanted substances.
• Packaging or production defects.

Standard property insurance may not cover all contamination or spoilage losses.

Specialist contamination, deterioration of stock or product recall cover may be available, depending on the circumstances and insurer.

The exact trigger, limits and exclusions are particularly important when considering this type of protection.

Products Liability Insurance for Breweries

Breweries manufacture products intended for consumption, creating potential product liability exposures.

If a customer alleges that a beer or other product caused injury or property damage, the business may face a liability claim.

Examples of Potential Product Liability Claims

• A customer alleges that a contaminated product caused illness.
• A packaging defect results in injury.
• A foreign substance in a product allegedly causes harm.
• A product defect leads to a qualifying claim for injury or property damage.
• A commercial customer makes a liability claim involving beer supplied by the brewery.

Products Liability Insurance may provide protection for qualifying compensation claims and associated legal defence costs.

However, the cost of recalling products, replacing defective beer or repairing reputational damage may require separate specialist cover.

Product Recall Insurance for Breweries

A product recall can create substantial costs for a brewery, particularly where beer has already been distributed to retailers, pubs, restaurants or wholesalers.

Depending on the policy, specialist Product Recall Insurance may provide protection for certain costs involving:

• Withdrawal of affected products.
• Product testing and investigation.
• Specified transportation and disposal expenses.
• Replacement of affected products.
• Crisis management support.
• Certain financial losses arising from an insured recall event.

Product Recall Insurance is not necessarily included in standard Products Liability Insurance.

Breweries supplying national retailers or operating wider distribution networks should consider their contractual responsibilities and potential recall exposure.

Public Liability Insurance for Breweries

Public Liability Insurance is particularly relevant where breweries welcome visitors, suppliers or other third parties onto their premises.

Examples of potential liability exposures include:

• A visitor slips or trips at the brewery.
• A supplier is injured while visiting the premises.
• A member of the public alleges that brewery operations caused injury.
• Accidental damage is caused to third-party property.

Public Liability Insurance may cover qualifying claims and associated legal defence costs, subject to policy terms.

Where tours, tastings or public events take place, these activities should be disclosed to insurers.

Brewery Taproom and Visitor Insurance

Many craft breweries operate taprooms, offer tasting experiences or run brewery tours.

These activities can introduce additional hospitality and public liability exposures.

Important considerations may include:

• Public access to the premises.
• Licensed alcohol sales.
• Customer seating and communal areas.
• Food preparation or third-party food vendors.
• Guided brewery tours.
• Private events and entertainment.
• Outdoor seating and temporary structures.

Insurers should be informed of the nature and extent of all public-facing activities.

Some taproom or hospitality operations may require additional insurance sections or specialist underwriting.

Business Interruption Insurance for Breweries

A brewery may face significant financial losses if production is interrupted following a serious insured incident.

Damage to the premises, a fire or another covered event could prevent the business from brewing, packaging or distributing products.

Business Interruption Insurance may provide protection for certain financial losses following a qualifying insured event.

Important considerations include:

• Loss of gross profit or revenue, depending on the policy basis.
• Continuing business expenses.
• Additional costs incurred to reduce an insured interruption.
• The time needed to repair or replace brewing equipment.
• Production and fermentation timescales.
• Contractual supply commitments.
• The selected maximum indemnity period.

Breweries should consider whether their indemnity period allows sufficient time to restore production and return to normal trading.

Equipment breakdown, supplier failure and other interruptions may require specific extensions or separate cover.

Brewery Supply Chain Risks

Breweries often depend on specialist suppliers for ingredients, packaging and production equipment.

Disruption involving a key supplier may affect the brewery’s ability to maintain production.

Potential supply chain exposures include:

• Shortages of particular hops or malt varieties.
• Delays in receiving bottles, cans or kegs.
• Failure of a specialist equipment supplier.
• Disruption to packaging or distribution services.
• Dependency on a small number of major customers.

Contingent Business Interruption or other specialist extensions may be available for certain insured events affecting suppliers or customers.

However, ordinary shortages, price increases and general supply chain disruption are not normally covered by standard Business Interruption Insurance.

Brewery Distribution and Goods in Transit Insurance

Breweries delivering products to pubs, restaurants, wholesalers or retailers may require protection for vehicles and goods in transit.

Commercial Motor Insurance may be appropriate for vehicles used in business operations.

Goods in Transit Insurance may provide protection for specified loss of or damage to insured beer and other goods during transportation.

Insurers may need details of:

• The vehicles used.
• The value of products transported.
• Delivery areas and distances.
• Whether deliveries are made using your own vehicles or third-party carriers.
• Storage and security arrangements.

Commercial motor insurance should not be assumed to cover the value of products being transported.

Environmental and Pollution Risks for Breweries

Brewing operations can involve wastewater, cleaning chemicals, fuel, refrigerants and other substances that may create environmental exposures.

An accidental release or pollution incident could result in cleanup costs, third-party claims or regulatory action.

Standard Public Liability Insurance may contain restrictions or exclusions relating to pollution and contamination.

Depending on the business, specialist Environmental Liability Insurance may be worth considering.

Regulatory fines and penalties should not be assumed to be insurable.

How Much Does Brewery Insurance Cost?

Brewery Insurance premiums depend on the size, activities and risk profile of the business.

What Does Brewery Insurance Not Cover?

Brewery Insurance policies contain exclusions and conditions that should be reviewed carefully.

Depending on the policy, restrictions may apply to:

• Wear and tear or gradual deterioration.
• Mechanical breakdown without suitable cover.
• Contamination or spoilage without an applicable insured trigger.
• Product recall costs unless specifically insured.
• Undeclared business activities.
• Cyber incidents without appropriate cyber cover.
• Ordinary supply chain disruption.
• Deliberate or dishonest acts.
• Business interruption without a qualifying insured event.
• Failure to comply with relevant policy conditions.

Insurers may impose conditions relating to machinery maintenance, electrical inspections, fire protection, stock storage and other risk management arrangements.

Brewery Safety and Risk Management

Good risk management can help reduce the likelihood of injury, property damage and production losses.

Important considerations include:

• Regular inspection and maintenance of brewing equipment.
• Appropriate electrical and gas safety procedures.
• Safe use and storage of cleaning chemicals.
• Suitable controls for hot liquids and steam.
• Safe working procedures around pressurised vessels.
• Appropriate controls for carbon dioxide exposure and confined spaces.
• Suitable manual handling and workplace safety procedures.
• Fire safety assessments and prevention measures.
• Product quality control and traceability procedures.
• Appropriate visitor safety arrangements for tours and taprooms.
• Environmental controls for wastewater and chemical storage.

Risk assessments should reflect the actual brewing processes and applicable legal requirements.

What Information Is Needed for a Brewery Insurance Quote?

To help us explore suitable insurance options, we may ask for:

• Your brewery name and trading address.
• The type of brewery and business structure.
• Annual turnover and production volume.
• Details of your premises and building construction.
• Machinery, equipment and stock values.
• Details of brewing and packaging processes.
• Whether you operate a taproom or offer brewery tours.
• Any food service, events or hospitality activities.
• Distribution arrangements and customer types.
• Employee numbers and payroll.
• Risk management and maintenance arrangements.
• Previous claims and insurance history.

Larger or more complex breweries may require additional underwriting information or an insurer survey.

Frequently Asked Questions About Brewery Insurance

Do microbreweries need insurance?

Microbreweries should consider insurance for property, equipment, public and products liability, and business interruption. Employers’ Liability Insurance is legally required for most UK employers, subject to exemptions.

Does Brewery Insurance cover brewing equipment?

Cover may be available for insured damage to brewing machinery and equipment. Mechanical or electrical breakdown may require an additional insurance section.

Does Brewery Insurance cover contaminated beer?

Some contamination or spoilage losses may be insurable under specialist cover, but standard property policies do not necessarily cover these exposures.

Is Product Recall Insurance included?

Not necessarily. Product Recall Insurance is often a specialist cover and should not be assumed to form part of standard Products Liability Insurance.

Can I insure a brewery with a taproom?

Insurance options may be available for breweries operating taprooms, subject to insurer acceptance. All licensed, hospitality and public-facing activities should be declared.

Does Brewery Insurance cover loss of production?

Business Interruption Insurance may cover certain financial losses following a qualifying insured event. Machinery breakdown and supplier-related interruption may require specific extensions.

Why Choose Edison Ives for Brewery Insurance?

At Edison Ives, we understand that breweries face a combination of manufacturing, property, product and hospitality risks.

We take time to understand your production processes, equipment, distribution arrangements and any public-facing activities.

Our approach includes:

• Insurance options for craft breweries and microbreweries.
• Consideration of larger commercial brewing operations.
• Property, machinery and stock insurance discussions.
• Public and Products Liability Insurance considerations.
• Business interruption and specialist contamination cover options.
• Consideration of brewery taprooms and visitor facilities.
• Clear explanations of important exclusions and conditions.
• Personal service and broker support during claims.

Part of David Roberts & Partners

Edison Ives is proud to be part of David Roberts & Partners Ltd, an independent insurance broker group.

This relationship supports our access to commercial insurance markets and specialist expertise while allowing us to maintain a personal approach to our clients.

Contact Edison Ives

Call 0113 390 4646

Email info@edinsure.co.uk