CRAFT
DISTILLERY
EVERY RISK A LARGE DISTILLERY HAS. LESS MARGIN FOR ERROR.
A craft distillery runs the same exposures as a large operation — expensive equipment, valuable aging inventory, tasting room liquor liability, and product in the market — but concentrated into a small operation where a single loss hits harder. One still is the whole production. One spoiled barrel is a significant chunk of inventory. One claim in the tasting room is a big event for a small business.
When your whole production runs through one piece of equipment, breakdown coverage matters more, not less.
Each barrel gains value over time. Small-batch producers carry significant inventory relative to their size.
Serving spirits to the public carries full dram shop exposure whether you pour ten samples a day or a hundred.
Every bottle sold — at the distillery, through retail, or at events — carries product liability beyond the pour.
STEP THROUGH THE CRAFT DISTILLERY PROGRAM.
Use the arrows to move through each coverage area and see how it applies. A general illustration to frame a review — not a quote or rating tool.
The copper still, condensers, and production equipment are the heart of the operation. Property coverage addresses the building and contents; breakdown adds a layer for mechanical and electrical failure that can stop production entirely.
Spirits aging in barrels represent growing value over months and years. Property and spoilage coverage can address the barrel inventory, and accurate scheduling is important as the value compounds over the aging period.
Product liability follows the spirit from the distillery into the market — through the tasting room, retail, and events. For a craft producer, every bottle sold carries that exposure.
Pouring spirits for the public — samples, cocktails, or flights — carries full dram shop and over-service exposure. Liquor liability is a core line for any craft distillery that opens a tasting room.
Tours near an active still, barrel rooms, and event programming bring the public into a production environment. General liability covers visitors on site; events are reviewed for frequency and scale.
Production staff working near heat sources and stills, and tasting room staff serving the public, both need coverage. For a small team, a single injury can have a large operational impact.
HOW THE CRAFT DISTILLERY PROGRAM IS BUILT.
The still and production equipment, with breakdown coverage for a small operation where one failure stops everything.
Barrel inventory scheduled accurately as spirits age and grow in value, with spoilage for covered causes of loss.
Product liability for spirits sold through the tasting room, retail, events, and self-distribution.
Full dram shop and over-service coverage for a craft distillery that pours for the public.
General liability for visitors on site, event coverage, and workers compensation for the small production team.
TELL US ABOUT YOUR CRAFT DISTILLERY.
Complete the form and a Kelly Insurance Group specialist will follow up to begin your craft distillery review.
BUILT FOR THE SMALL-BATCH PRODUCER.
STRAIGHT ANSWERS ON CRAFT DISTILLERY COVERAGE.
WHAT DOES CRAFT DISTILLERY INSURANCE COVER?
Craft distillery insurance covers the still and production equipment, aging barrel inventory, product liability for spirits, tasting room liquor liability, tours and events, and workers compensation. Coverage is scaled to a small-batch operation while addressing the same core exposures a larger distillery faces.
IS COVERAGE DIFFERENT FOR A SMALL CRAFT DISTILLERY?
The exposures are the same as a larger distillery but concentrated. A single equipment failure, a spoiled barrel, or one tasting room claim lands harder on a small operation. The program is sized to match, not over-buy.
DO CRAFT DISTILLERIES NEED LIQUOR LIABILITY?
Craft distilleries that pour in a tasting room, host events, or serve samples need liquor liability. Serving spirits creates over-service and dram shop exposure the same as any bar, in addition to product liability for what they distill.
WHAT ABOUT MY STILL AND SMALL-BATCH EQUIPMENT?
A craft still and the equipment around it are high-value specialty property. Equipment breakdown can be added so mechanical or electrical failure is addressed beyond standard property perils, which is especially important for a small operation where one still is the whole production.
IS AGING BARREL INVENTORY COVERED?
Aging spirits in barrels represent growing value on a small producer's balance sheet. Property and spoilage coverage can address the inventory, and accurate scheduling is important as the barrels age and gain value.
HOW DO I GET A CRAFT DISTILLERY QUOTE?
Completing the form on this page gathers your production volume, equipment, aging inventory, tasting and event activity, and distribution so the account can be reviewed and matched to the right specialty markets for a small-batch operation.
SMALL-BATCH SPIRITS DESERVE A FULL-COVERAGE PROGRAM.
Kelly Insurance Group builds specialty programs for craft distilleries from the first barrel to the bottle on the shelf. Start with a conversation or the form above.
The availability of coverage and eligibility for coverage can depend on numerous factors. We cannot guarantee that all customers, individuals, and businesses looking for coverage will be successful in these efforts when contacting our team. All policy coverages and terms need to be fully reviewed by the respective consumer to ensure the coverage asked for is what is specifically being quoted or provided by any insurance policy. Insurance Policies, Coverage Changes, and their terms and conditions are not bound or altered until written confirmation is provided by one of our licensed team members or underwriters. This page does not offer legal advice, legal opinions, or policy interpretations. Rather, this page is meant as a resource to help provide customers and insurance consumers with additional considerations that may help in their insurance buying or pursuit of insurance information. Kelly Insurance Group does not employ or direct attorneys.
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Disclaimer: Coverage availability and eligibility may depend on underwriting review, carrier guidelines, policy terms, state requirements, business operations, risk characteristics, and other information provided during the application or quoting process. Kelly Insurance Group cannot guarantee that every individual, customer, organization, or business seeking coverage will qualify for, receive, or successfully place insurance coverage. All policy coverages, exclusions, conditions, limits, endorsements, and terms should be carefully reviewed by the consumer, insured, or applicant to confirm that the coverage requested is the coverage being quoted, offered, or provided. Insurance coverage, policy changes, endorsements, cancellations, and other policy terms are not bound, changed, confirmed, or altered unless and until written confirmation is provided by a licensed Kelly Insurance Group team member, the applicable insurance carrier, or an authorized underwriter. This page is provided for general informational purposes only and does not provide legal advice, legal opinions, insurance coverage opinions, or policy interpretations.