The Importance of Insurance for a UK Brewery
The UK beer market is red hot right now. In fact, Britain is the third largest beer-drinking nation in the world, with just over 140 million pints downed every day. Did you know that?
It’s probably because so many people are opening new breweries in the UK that we’re also leading European growth in craft beers too. The number of breweries operating across the country currently sits at around 1,700 – a massive increase from 200 just 15 years ago.
With so many new breweries popping up, you might be wondering if owning your own brewery would be a profitable venture for you. After all, there are some significant costs involved when setting up any business – with insurance being one of the most important expenses to consider before taking the leap.
UK Brewery Insurance: Why Is It Important?
Brewing is a process that takes time and uses lots of equipment – some of which is very expensive, and all of which requires careful cleaning and maintenance. Accidents do happen – and, if they occur during the brewing process, they could have devastating effects on your business.
You’ll also need to consider insurance for your employees. Although brewing is a process that doesn’t require much manual labour, it is a dangerous industry to work in – particularly when it comes to the risk of injury from handling heavy equipment.
Costs Involved in Setting Up a Brewery
In addition to the costs of your insurance policies, there are other significant expenses associated with opening a brewery. You might need to invest in new equipment, or you might want to renovate your premises to make them better suited to brewing. There are also other essentials that will need to be purchased, such as the ingredients needed to make your beer. Even if you want to make a slight alteration to an existing brewery, you might still need to spend a substantial amount of money to make the necessary changes. And don’t forget that you’ll need to hire staff to run your business.
It can therefore be tempting to cut back on expenses like insurance - but as many business people found out during the Covid epidemic, there are many unexpected horrors that can strike, and that is what insurance is there for.
Insurance for Food Businesses
UK brewery insurance is designed to provide coverage for almost any type of food business. If you’re not just making beer, but also food items such as soft drinks, you should be sure to include these in your policy.
One of the biggest risks for food businesses is the potential for contamination. If your employees aren’t careful when handling ingredients, they could spread dangerous bacteria to your products. Your insurance policies should cover losses caused by contamination – including the cost of issuing recalls if necessary.
What Else Should Be Included in Your Brewery Insurance?
As well as having adequate food contamination coverage, you should also make sure that your brewery insurance policy includes adequate liability coverage. When other people come into contact with dangerous items, such as contaminated food, pressurised vessels or dangerous chemicals, you could be held liable for the injuries or even the deaths that occur as a result. Your brewery insurance policy should also include coverage for property damage that might be caused by your operations.
As well as the potential for overflowing liquids to cause significant damage to your premises, you should also consider the potential for fires to break out as a result of your brewing equipment.
Limitations of UK Brewery Insurance
Standard UK brewery insurance policies are often comprehensive enough to protect most businesses. However, some breweries have very specific requirements for their insurance policies, and may need to look for more specialized coverage.
You might need to take a number of factors into account when selecting a brewery policy. For example, you might need to consider the size of the business, the risk of contamination, the brewing process that’s used, and any specialist equipment that’s used. Talking to a broker with experience in your fielsd may be time well spent.
If you’re opening a brewery, or already running one, it’s critical that you understand the importance of insurance. From insurance for food businesses, to brewery insurance, and even public liability insurance, it will cover a range of potential issues that could affect your business.
You’ll need to select the best brewery insurance policies for your business but before you do, make sure that you understand the different types of insurance that breweries need, and what each policy offers.