Ask the Collective
The questions independent drinks founders ask most — answered. Distilled from years of community knowledge so the good stuff never disappears in the feed again.
What are typical business insurance costs and which brokers or providers offer good value for public liability and other business insurance?
Members report widely varying premiums depending on business type and turnover. One member pays £890 for public liability; others with production/distilling operations pay considerably more. The consensus is that insurance costs are broadly based on turnover, but it's worth shopping around and negotiating. **Recommended providers and brokers:** - **NFU Mutual** — Multiple members have switched to them and report better claims payouts and willingness to cover production/distilling operations. One member saved money on renewal after 8 years with the same broker; another switched after previous insurers repeatedly denied coverage on key items. - **James Hallam** (contact: Adam.Warwick-Baker@jameshallam.co.uk) — Recommended as a broker with good results. - **Federation of Small Businesses** — Suggested as a resource for insurance guidance. **Tips for negotiating better rates:** - If using a broker, ask explicitly what their commission/fees are—they may shave a discount off if you ask. - Members have successfully organised group purchasing deals through brokers, which can improve rates. **Additional cover to consider:** - **Directors & Officers (D&O) insurance** — One member flagged this as worth adding to standard business insurance. **Note:** Premiums vary significantly based on business activities (e.g., production, distilling, hospitality). Getting specialist brokers familiar with drinks industry operations appears to yield better outcomes and fewer claim rejections.
What product liability and recall insurance should early-stage drinks brands get, and what are reasonable excess levels?
Early-stage brands without physical premises should prioritise product liability insurance through specialist brokers who understand the drinks industry. Several members have found good value through brokers and trade associations rather than direct insurers. **Recommended providers:** - **Towergate** — contact Ian.Hughes@towergate.co.uk; members recommend them for product liability - **Superscript** — noted as nice and cheap for all the basics needed by early-stage brands - **Sutton Winson** — described as very good, insured multiple members for years - **National Farmers Union** — recommended by members - **Federation of Small Businesses** — has a dedicated insurance service with good prices **Recall insurance specifics:** Members warn that recall-only policies with very high excesses can be poor value. One member was offered £7k annual recall cover with a £100k excess, which they considered a waste of money. Others have secured recall insurance with more reasonable £30k excesses at around £9k per year. **Key takeaway:** For early-stage brands, focus on comprehensive product liability rather than standalone recall policies with punitive excess levels. Use a broker familiar with drinks brands to negotiate better terms.
Which insurance providers currently underwrite distilleries, and what are members experiencing with renewal challenges?
Distillery insurance has become increasingly difficult to secure, with many mainstream insurers withdrawing from the market. Members report that their existing insurers are refusing to renew terms, and brokers are warning of high rejection rates from their panels. Providers currently willing to underwrite distilleries include: - **NFU** — actively underwriting distilleries; members report switching to them despite higher premiums; praised for reliable claims payment and strong service - **Aviva** — still accepting distillery accounts - **Capsule Brokers** — recommended as a smaller, B Corp broker specialising in distillery placement - **The Clear Group** — brokerage confirmed to handle distillery insurance - **Gallaghers** — established broker (members' existing point of contact), though they are experiencing difficulty placing new renewals as their panel has largely withdrawn from distillery underwriting Current market context: Members note that perceived risk in the distillery sector has increased, with expectations of significant premium rises. One member speculated this may be linked to elevated claims activity in 2024. The market is tightening, and brokers are warning clients that even preliminary underwriting referrals may result in refusal. Members recommend contacting specialist brokers early rather than waiting until renewal deadlines.
What insurance providers specialize in coverage for micro breweries and distilleries?
Members recommend a small set of specialist providers for brewery and distillery insurance. - **NFU Mutual** — frequently recommended by the community as a go-to option for brewery and distillery coverage. - **Superscript** — used by at least one member; noted as suitable for operations without a physical site (e.g. online-only models). Members suggest checking both providers, as the right fit depends on your specific setup (e.g. whether you have a physical production facility). Several members indicated they had discussed additional options in earlier group conversations, so reviewing the full chat history may reveal other candidates.
Is Directors & Officers insurance recommended and what should a drinks business include in its insurance policy?
Yes, D&O insurance is recommended as part of a comprehensive business insurance policy. Members typically combine D&O with other business coverage on a single policy to improve pricing and simplify management. **Insurance providers and brokers:** - **Aviva** — members use Aviva for combined business policies that include D&O coverage - **A Plan** — a broker used by members with no reported issues; offers intro available on request - **PIB Insurance Brokers** — specialise in getting competitive pricing by combining policies and identifying benefits and risks; contact Brett Wexler (ACII, Tech Iosh, AMinstLM, Chartered Insurance Broker) at T: 02035357905, M: 07904809237, E: Brett.Wexler@pib-insurance.com, W: pib-insurance.com **Key consideration:** Members stress that the true value of a policy only becomes clear if you need to claim. Shopping around via a broker who can bundle policies together typically yields better rates than standalone policies.
What are the insurance and risk allocation obligations for Ex Works sales?
Ex Works (EXW) terms typically mean the buyer assumes all responsibility and risk once they take control of the goods at your warehouse, so you are not obligated to arrange goods-in-transit insurance. - **Risk transfer at pick-up**: Under standard Ex Works terms, responsibility passes to the buyer upon collection from your warehouse, so you have no obligation to insure the goods in transit - **Your transport insurance**: Some members maintain insurance covering transport within the UK for specific exposures (e.g. theft) but note this may not extend to overseas shipments — check your policy wording carefully - **T&Cs matter**: Ensure your terms and conditions clearly state that risk (not necessarily title) passes to the buyer at the point they take control of the goods; this protects you from liability claims Members emphasise that once risk has contractually transferred to the buyer at your warehouse, the goods-in-transit insurance obligation falls entirely to them. However, verify your own transport insurance policy to understand what domestic coverage you do have and whether it extends internationally.
What insurance coverage beyond public liability should a drinks business have in place?
Members recommend a comprehensive insurance portfolio that goes well beyond basic public liability. The typical coverage includes: - **Employers' Liability** — required if you have staff - **Public Liability** — your baseline cover - **Products' Liability** — essential for any food or drinks manufacturer - **Property/Material Damage** — cover for all physical locations where you operate - **Money** — protection for cash and valuables - **Goods in Transit** — covers stock while being moved between locations - **Business Interruption** — protects against loss of income if operations are disrupted - **Legal Expenses** — covers legal costs if disputes arise - **Cyber Liability** — increasingly important for digital operations and data protection - **Management Liability / D&O** — Directors & Officers cover for leadership exposure Members emphasized this is particularly important if you operate across multiple physical locations, as you'll need to ensure all sites are properly covered.
What public liability insurance coverage and classification do I need for Christmas markets and event activations?
Members recommend securing **£5M of public liability cover** as a minimum—this is required by many event organisers. Several insurers and brokers have been used by the community: - **Simply Business** (simplybusiness.co.uk) — easy to deal with and competitive pricing - **FSB** — recommended as a route for cover - **CMTIA** (cmtia.co.uk) — described as "the bog standard" option, though verify they cover your specific event type before applying One member reported that CMTIA initially said they don't provide event cover, so confirm coverage explicitly when applying—don't assume. Another member noted they obtained £5M cover through a broker and believed it covered events, but recommend double-checking the policy wording. **Key caveat:** Classification and specific event coverage terms vary by insurer and event type. Contact brokers directly to confirm your Christmas market or activation qualifies under their policies before committing.
What insurance providers do spirits producers in the community recommend for business coverage?
Members recommend seeking insurers who prioritise reliable claims handling over rock-bottom premiums. The two providers mentioned are: - **NFU** — noted as not the cheapest option, but members value that they "will actually pay out" when claims are needed. - **FSB** — mentioned as an alternative to explore. The key principle shared by the community is that choosing an insurer based solely on lowest cost can backfire; members prioritise providers with a track record of honouring claims for spirits producers.
What insurance providers and brokers do members recommend for alcohol businesses in the UK?
Members have had positive experience with **FSB (Federation of Small Businesses)** services for general business insurance involving alcohol, and specifically recommend an annual subscription to their broker services as worth the investment. While the discussion excerpts don't provide extensive detail on multiple insurance options, FSB is the provider named directly by a member with practical experience in the alcohol sector. Members seeking more comprehensive recommendations may also benefit from discussing their specific needs (production type, location, scale) with brokers familiar with HMRC requirements and bonded warehouse logistics, given the regulatory complexity of alcohol businesses.