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 fees and minimum terms for obtaining Movement Guarantees through surety providers?
Movement Guarantee premiums typically start at a £1,000 minimum annual fee, regardless of the guarantee amount requested. Members report significant variation in pricing and terms depending on the underwriter. **Specific quotes members have received:** - **AON** (contact: james.ellison@aon.co.uk, underwritten by Aviva) — £1,000 minimum annual premium with £20k minimum surety requirement - **HCC through Nationwide Sureties** — quoted fees described as "way over" expectations, specific amount not disclosed - Anonymous provider — quoted £1,500 for a £2,750 guarantee over two years **Key observations:** - The £1,000 minimum fee applies even for smaller guarantee amounts (e.g., £20k) - Two-year terms appear available but pricing varies significantly - Members recommend shopping around, as quotes vary substantially between providers **Caveat:** The sample of quotes is small and anecdotal. Pricing likely depends on your business profile, guarantee amount required, and underwriter appetite. Getting multiple quotes from different brokers is essential.
What is the Movement Guarantee process for drinks businesses, and what are the typical costs and requirements?
A Movement Guarantee (MG) is a surety bond arrangement that allows drinks businesses to move goods under duty suspension without paying duty upfront, saving significantly on transport costs. **The process and costs:** - The arrangement has two parts: an HMRC element (described as straightforward) and a surety bond from an insurance provider - **Aon** is the recommended broker; contact james.ellison@aon.co.uk. Members report typical costs around £1,000 per year (minimum policy fee) - Some businesses previously combined their Movement Guarantee with warehouse bonds but can now obtain an MG-only policy - Insurers will review your P&L and balance sheet as part of underwriting; underwriters may ask for increasing scrutiny during renewal periods **Security requirements:** - Some insurers request a cash deposit (one quoted £10k) held as security, though this is not always required—it depends on the underwriter's assessment of your business - Members advised checking with your specific underwriter on this point **Benefits:** - Saves a substantial amount in transport costs compared to paying duty immediately Members noted that requirements and questioning from underwriters can vary and may become stricter during renewal cycles.