Your distillery faces many dangers.
Explosions can happen and result in fires and employee injuries. Mills, fermenters, mash turns, and other equipment can get damaged or break down. Of course, we can’t rule out the possibility that an independent contractor, visitor, or customer can experience accidents while in your distillery’s premises.
Get distillery insurance and protect yourself. Read this guide to:
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Know the cost of distillery insurance
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Compare the quotes of insurance policies you’ll need
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Review and read the pros and cons of the best companies
How Much Does Distillery Insurance Cost?
| Cost per Month | Cost per Year | Deductible | |
|---|---|---|---|
| General liability insurance | $45 | $540 | $0-$500 |
| Professional liability insurance | $52 | $624 | $500-$1,000 |
| Commercial property insurance | $65 | $780 | $1,000 |
| Business owner’s policy | $49 | $588 | $1,000 |
| Commercial auto insurance | $50 | $600 | $1,000 |
| Workers compensation insurance | $70 | $840 | $2,000-$5,000 |
Expect to pay $45 per month or $540 per year for a $1 million general liability insurance. This distillery insurance cost estimate assumes that you have 5 employees and make $500,000-$750,000 revenue per year. In connection, here’s another table showing the cost of the best distillery insurance companies:
| Cost per Month | Cost per Year | Best for | |
|---|---|---|---|
| NEXT | $30 | $360 | Best overall; Fastest general liability insurance for distilleries |
| Tivly | $30 | $360 | Comparing distillery insurance quotes over the phone |
| CoverWallet | $33.25 | $399 |
Distillery insurance quotes comparison online |
| Hiscox | $35 | $420 | General liability insurance with worldwide coverage for distilleries |
| Whalen | $45 | $540 | Start-up distillery businesses |
| Peterson | $50 | $600 | Established distillery businesses |
Factors That Affect The Cost Of Distillery Insurance
Type Of Insurance
Like insurance for liquor stores, breweries, and wineries, distillery insurance has different types of policies. The type of policy you choose affects the total cost. If you want comprehensive distillery insurance, you will have to spend more. This is because comprehensive insurance covers a wide range of claims. On the other hand, standard insurance – those that comprise one or two policies only- don’t cost a lot of money.
Size Of Distillery
The size of your distillery also influences the cost of insurance. If you run an established distillery business with several branches, you need comprehensive insurance cover as risks are numerous.
However, if you operate a small distillery business, you don’t have to spend much on insurance. The risks that come with a small distillery business are lower than those of an established one.
You must provide accurate information when applying for distillery business insurance. Be very truthful about the size of your business. Giving false information can save money but it will not help the moment you file a claim for insurance coverage.
Number Of Employees
The number of employees of your distillery business also plays a vital role in determining the cost of insurance. More employees means more people to cover, and therefore heftier costs for insurance. On the other hand, if you have fewer employees, the cost of insurance could be cheaper.
Working in a distillery poses a great risk to the employees’ welfare. Apart from workplace accidents, employees are also exposed to other health hazards. In case an employee sustains severe injuries or gets sick while working, you have to cover their medical expenses.
A comprehensive insurance policy will help cover such instances. Ideally, you should get coverage that accounts for workplace-related injuries.
Revenues
The amount of money your distillery business makes also influences the cost of insurance. The higher the income, the more you spend on insurance. A distillery business that makes thousands of dollars is established and highly valuable. When it’s highly valuable, it’s big. Therefore, there’s more risk and with more risk, comes expensive premiums.
It will help if you get a comprehensive insurance cover that matches the value of your business. This is why having a solid idea of your gross income plays a vital role in determining the cost of insurance.
Get all the best quotes from leading providers in a click of a button!
General Liability Insurance For Distilleries
| CoverWallet | NEXT(Best) | Hiscox | |
|---|---|---|---|
| Per occurrence limit | $1,000,000 | $1,000,000 | $2,000,000 |
| Aggregate limit | $2,000,000 | $2,000,000 | $2,000,000 |
| Products and completed operations aggregate limit | $2,000,000 | $1,000,000 | $1,000,000 |
| Advertising injury coverage aggregate limit | $1,000,000 | $1,000,000 | $1,000,000 |
| Tenant’s legal liability coverage limit | $300,000/$1,000,000 | $300,000 | $100,000 |
| Waiver of subrogation included? | Yes | No | Can be included |
| Hired/non-owned auto liability coverage included? | Yes | No | Can be included |
| Equipment breakdown floater included? | No | Yes | Can be included |
| Can you get a certificate of insurance online? | Yes | Yes | Yes |
| Name additional insureds? | Yes | Yes | Yes |
| Deductible | $0 | $0 | $0 |
Your distillery is liable for any property damage or bodily injury that results from its operations.
For example, an inspector might slip and fall. A shipping contractor might experience an accident while loading your finished whiskey, vodka, or rum. General liability insurance grants the shield you need in such instances.
About 100% of distilleries need this. Use the table above to compare the quotes of general liability insurance from companies we recommend.
The coverage of general liability insurance applies when a third party, say a customer, or independent contractor, files a claim for bodily injury or property damage to get compensation for pain, suffering, and financial losses.
With general liability insurance, you can cover these expenses without using the finances of your business:
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Medical treatment of the claimant
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Reimbursement for the damaged property of the claimant
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Settlements
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Attorney fees, court filing fees, and other expenses for legal defense
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Court judgments
General liability insurance for distilleries doesn’t only cover bodily injuries or property damage. It’s language can also include other common commercial risks such as:
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Product liability claims
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Liquor liability claims
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Landlord property damage claims
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Slander, libel, and copyright infringement claims
Product Liability Insurance For Distilleries
| CoverWallet (Best) | NEXT | Hiscox | |
|---|---|---|---|
| Per occurrence limit | $1,000,000/$2,000,000 | $1,000,000 | $1,000,000 |
| Aggregate limit | $1,000,000/$2,000,000 | $1,000,000 | $1,000,000 |
| Offered as part of general liability insurance? | Yes | Yes | Yes |
| Can you get a certificate of insurance online? | Yes | Yes | Yes |
Distributors and resellers can hold your business liable if they discover that the alcoholic drinks from your distillery are substandard and can harm customers.
Because of this, product liability insurance is an essential part of a comprehensive distillery insurance bundle. Use the table above to compare the product liability insurance from carriers we recommend.
Oftentimes sold as part of general liability insurance, product liability insurance covers the compensation and legal costs if a claim is filed because your distillery’s product has:
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Misleading labels
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Wrong labels
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Contaminants
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Incorrect bottling or packaging
The primary function of this insurance is to cover settlements, defense costs, and court judgments. Its additional functions, depending on which insurance company you decide to work with, are:
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Take care of PR costs
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Cover product recalls
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Cover extra labor when you recall products
Distillery Professional Liability Insurance
| CoverWallet (Best) | NEXT | Hiscox | |
|---|---|---|---|
| Per occurrence limit | $1,000,000 | $1,000,000 | $250,000/$2,000,000 |
| Aggregate limit | $2,000,000 | $1,000,000/$2,000,000 | $250,000/$2,000,000 |
| Name additional insureds? | Yes | Yes | Yes |
| Waiver of subrogation included? | Yes | No | No |
| Deductible | $500 | $500 | $500 |
You need to add a professional liability policy to your distillery insurance bundle if your business owns a bar where freshly manufactured whiskeys, vodkas, and other alcoholic drinks are sold.
Professional liability insurance grants protection in case a bartender of your distillery’s bar messes up during work. For example, if a patron displays a severe reaction to a combination of alcohol wrongfully mixed by the bartender, then this insurance can help.
Use the table above to compare the quotes of professional liability insurance for distilleries.
Professional liability insurance covers settlements, defense costs, and court judgments if a third party holds your business or an employee liable for:
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Negligence
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Violation of good faith
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Violation of fair dealing
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Misrepresentation
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Breach of contract
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Breach of confidentiality
Commercial Property Insurance For Distilleries
| CoverWallet | NEXT (Best) | Hiscox | |
|---|---|---|---|
| Building coverage limit (minimum) | $50,000 | $500,000 | $15,000 |
| Contents coverage limit (minimum) | $50,000 | $35,000 | $15,000 |
| Outdoor signs | Excluded | $2,500 | Excluded |
| Accounts receivable | Excluded | Excluded | Included |
| Money and securities | Excluded | $2,500 | Included |
| Lock and keys | Excluded | $2,500 | Excluded |
| Business interruption floater | Excluded | Included | Included |
| Equipment breakdown floater | Excluded | Included | Excluded |
| Inland marine insurance floater | Excluded | Excluded | Excluded |
| Employee dishonesty floater | Excluded | $5,000 | Included |
You need a physical space to run a distillery. That physical space might be your own home (if you’re a home-based business), a dedicated building, or an entire establishment (if you’re running a large distillery company).
Ensure that your business survives if something happens by getting commercial property insurance. Use the table above to compare the quotes of this insurance from companies worth trying out.
So how does commercial property insurance work? Commercial property insurance reimburses losses if the office, facilities, and other buildings of your distillery business gets damaged or destroyed because of:
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Fire
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Theft
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Vandalism
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Civil commotion
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Riot
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Volcanic action
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Lightning
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Sinkhole collapse
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Falling objects
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Aircraft
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Vehicle
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Impact
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Winds
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Snow
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Hail
You can also use commercial property insurance in case the mash turns, fermenters, and other equipment of your business get damaged or destroyed because of fire, theft, vandalism, and other perils we mentioned above.
Business Owner’s Policy For Distilleries
| CoverWallet | NEXT (Best) | Hiscox | |
|---|---|---|---|
| General liability aggregate limit | $2,000,000 | $2,000,000 | $2,000,000 |
| Commercial property insurance aggregate limit | $50,000 | $500,000 | $100,000 |
| Optional policies can be added? | Yes | Yes | Yes |
| Name additional insureds for free? | Yes | Yes | Yes |
| BOP discount? | Yes | Yes | Yes |
You can bundle your general liability insurance and commercial property insurance into a business owner’s policy. By doing this, you enjoy cheaper premiums and simpler policy management. Use the table above to compare the quotes of the business owner’s policy from carriers we recommend.
So what is a business owner’s policy? A business owner’s policy fuses the functions of general liability insurance and commercial property insurance. That said, it’s an insurance product that grants protection against commercial loss and liability claims.
Help others make better decisions
Workers Compensation Insurance For Distilleries
Your distillery will eventually grow if you do things right. Workers’ compensation is an essential distillery business insurance when it’s time for you to hire one or more people
Workers’ compensation insurance will take care of costs when an employee sustains an occupational disease or injury. Here are some situations where this insurance can help:
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An employee gets injured while repairing pipes because of an explosion
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An employee gets involved in a car accident while delivering your products to distributors
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An employee gets sick due to exposure to harmful chemicals
Each state has its own laws which mandate the particular expenses that workers’ compensation insurance can cover. Nonetheless, no matter where you’re operating, expect the policy to account for:
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Medical treatments
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Hospitalization
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Medication
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Rehabilitation and retraining
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Lost wages
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Funeral expenses and allowance to dependents in case of death
Commercial Auto Insurance For Distilleries
Commercial auto insurance is essential coverage if your distillery owns a commercial vehicle that employees use to deliver manufactured drinks to liquor stores.
This insurance does many things for your business. Here’s a quick summary of how commercial auto insurance works:
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Cover the medical treatment of persons who got injured because of an accident your distillery’s commercial vehicle caused
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Reimburse the losses of persons who sustained property damage because of your distillery’s vehicle
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Pay for parts repair or replacement if your distillery’s commercial vehicle sustained damage because of fire, theft, vandalism, and other covered perils
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Cover the medical treatment of the driver and passengers of your commercial vehicle that got involved in an accident caused by an uninsured/underinsured driver
Get all the best quotes from leading providers in a click of a button!
Best Distillery Insurance Companies
These are the best distillery insurance companies. Read to know their pros, cons, and rate for a $1 million general liability insurance.
NEXT Distillery Insurance
Pros
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Best overall
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Get an online proof of insurance and send as a text message, email, or social media post
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Fastest general liability insurance for distilleries
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Great customer service and reputation
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Issues an online proof of insurance instantly
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Outstanding value for money
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Bundle two or more insurance policies and get a 10% discount
Cons
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Couldn’t find any
NEXT offers distillery insurance in partnership with CommercialInsurance.NET. Policies you can get are general liability, workers compensation, commercial property, and commercial auto insurance. You can choose to get covered immediately online or talk with an agent first to know the nook and crannies of your coverage.
Best for: Best overall; Fastest general liability insurance for distilleries
Average cost: $30 per month
Our rating: 10/10
CoverWallet Distillery Insurance
Pros
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Compare distillery insurance quotes over the phone
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Easy policy management and payment of premiums
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Call and cancel your policy anytime
Cons
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Not an insurance company but an insurance broker
CoverWallet’s distillery insurance program offers general liability, commercial property, workers compensation, and many other policies. This company is only a seller and not the underwriter of the quotes it sells. The insurance you get from CoverWallet are underwritten by Chubb, CNA, Liberty Mutual, and other partners.
Use CoverWallet’s quotes comparison tool to compare distillery insurance quotes online.
Best for: Distillery insurance quotes comparison online
Average cost: $33.25 per month
Our rating: 10/10
Tivly Distillery Insurance
Pros
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Responsive customer service
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A partner of many reputable insurance companies
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Compare quotes over the phone
Cons
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You need to call to get a quote
Tivly (formerly CommercialInsurance.NET) provides coverage for distilleries with poor business profiles. Many reputable insurance companies will refer you to this company if they can’t provide coverage. Call Tivly now and compare distillery insurance quotes over the phone.
Best for: Comparing distillery insurance quotes over the phone
Average cost: $30 per month
Our rating: 10/10
Hiscox Distillery Insurance
Pros
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14-day money-back guarantee
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Worldwide coverage
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Choose policy limits and deductibles
Cons
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Distillery insurance might not be available depending on your location
Hiscox offers coverage for distilleries through its insurance program for beverage stores and wine businesses. You can get general liability, professional liability, and cyber liability insurance online. Call a Hiscox representative if you need other business insurance products.
Best for: General liability insurance with worldwide coverage for distilleries
Average cost: $35 per month
Our rating: 9/10
Whalen Distillery Insurance
Pros
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Diverse experience
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Dedicated service
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Tailored insurance cover
Cons
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Not available in some states
Since the 1980s, Whalen Insurance has been a trusted company for distilleries and breweries alike. This company continues to provide comprehensive insurance coverage that your business needs.
Apart from tailored insurance offerings, Whalen Insurance has recently partnered with a leading company to provide even better services. Its broad experience in the industry also makes it a worthy candidate to consider.
Whalen offers comprehensive insurance coverage that includes liquor liability, property damage, worker’s compensation, equipment, and many more. By the way, if you’re running a wine business aside from a distillery, try contacting Whalen customer support if there’s coverage available.
Best for: Start-up distillery businesses
Average cost: $45 per month
Our rating: 8/10
Peterson Distillery Insurance
Pros
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Affordable
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Tailored insurance cover
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Fast claim responsiveness
Cons
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Limited to a few countries
Peterson Insurance understands the unique risks you face in your distillery business. It offers coverage specifically for wineries, distilleries, liquor shops, bars, restaurants, and breweries. This company is also prepared to help you with hands-on claims service and risk control.
With Peterson Insurance, you will enjoy comprehensive insurance cover. It has tailored policies that protect your distillery business from various claims.
Best for: Established distillery businesses
Average cost: $50 per month
Our rating: 8/10
