Barrels appreciate in the rickhouse and the limit usually does not.
Cover for distilleries — high-proof fire load, ageing inventory that gains value every year in storage, and federal excise tax that a total loss can trigger.
Tell us the situation.
A licensed human replies the same business day — not an auto-responder, and not five producers calling at once. We shop it across our carriers and tell you if the policy you already have is the right one.
We use this to quote and service your insurance, and we do not sell it or pass it to lead networks. Privacy policy.
What distillery businesses actually need.
Ageing inventory
Barrels in the rickhouse, valued for what they are worth now rather than at fill.
Without it — Spirit set at production cost is underinsured by multiples after a few years.
Fire and high-proof exposure
Property cover written knowing what the fire load in a still house actually is.
Without it — A standard commercial form is not priced or worded for it, and insurers are selective.
Federal excise tax exposure
Tax that can become payable on spirit lost outside an approved allowance.
Without it — A tax bill on inventory that no longer exists, on top of the inventory loss.
Liquor liability
Tasting room and distribution alike.
Without it — Excluded from general liability for anyone in the trade.
Equipment breakdown
Stills, boilers, chillers and controls, and the batch lost when they stop.
Without it — Pressure equipment failure is excluded by property policies as an internal cause.
What distillery operators ask us.
How should we value barrels in storage?
On a basis that tracks what they are actually worth as they age, agreed with the insurer in advance — not at cost to produce, which is what a default policy does and which understates a mature barrel by multiples. Get the valuation basis written into the policy rather than relying on a claims-time argument, and revisit the limit annually as the warehouse fills. This is the single most common underinsurance in the sector.
What is the excise tax exposure?
Spirits in bond carry federal excise tax that becomes payable on product lost outside an approved allowance. A fire can therefore produce a tax liability on inventory that no longer exists, on top of losing the inventory. Some policies can be extended to it and many are silent, which is not the same as covered — ask the question explicitly.
Why is distillery property cover hard to place?
High-proof spirit is a serious fire load, concentrated, and a rickhouse concentrates it further — many insurers simply decline the class. Placement usually depends on the specifics: sprinklers, separation between still house and storage, barrel storage construction, spill containment, and whether the tasting room is attached. Those details are the difference between a market and no market, so gather them before going out.
Not ready to talk? The guides answer the questions this page raises in more depth. Already insured with us and need a certificate or a policy change? Ask the service team rather than starting a quote — it is faster and it goes to the people whose job it is. We also write home and auto, which is usually cheaper alongside the business policy than apart from it.