In recent years, distillery tours have become a popular attraction for tourists and locals alike. Visitors enjoy learning how craft spirits are made, sampling products, and experiencing the behind-the-scenes operations of a distillery. However, for distillery owners, offering tours comes with a set of unique risks. Ensuring adequate protection through the right insurance policies is not only smart—it’s essential.

This guide explores everything you need to know about understanding insurance for distillery tours, including the types of coverage to consider, risk factors, and how to choose the right policy for your operation.

Why Insurance Matters for Distillery Tours

Distillery tours involve bringing members of the public into an active production environment that includes flammable liquids, heavy equipment, and alcohol consumption. Each of these factors increases the risk of accidents or liabilities that can result in costly claims or legal action.

Having proper insurance coverage helps protect your business from financial loss and ensures compliance with local laws or licensing requirements. It also reassures visitors and partners that your business takes safety seriously.

Common Risks Faced by Distilleries Offering Tours

When evaluating insurance needs, it’s important to understand the potential risks that come with hosting tours:

• Visitor injuries: A guest could slip on a wet floor or trip over equipment.

• Alcohol-related incidents: If a guest becomes intoxicated and causes harm to themselves or others, the distillery could be held liable.

• Fire or explosion hazards: Distillation processes often involve flammable substances that can pose a fire risk.

• Contamination claims: A visitor may claim illness or injury from a sample or product consumed on-site.

• Property damage: Accidental damage to the distillery’s property or equipment by a visitor.

• Legal costs: Defending against even a small claim can be expensive and time-consuming.

Key Insurance Coverage Options

1. General Liability Insurance

This is the foundational policy every distillery should carry. It covers bodily injury, property damage, and personal injury claims that occur on your premises. If a tour guest slips and breaks a wrist, general liability would typically cover medical bills and potential legal fees.

2. Liquor Liability Insurance

Since alcohol is served during tours and tastings, liquor liability coverage is critical. This policy protects you if a guest becomes intoxicated on your premises and then causes harm to themselves or others. Many states require this type of insurance for businesses that serve alcohol.

3. Commercial Property Insurance

This covers damage to your building, equipment, or inventory due to events like fire, theft, or vandalism. Given the presence of alcohol and specialized machinery, this coverage ensures you can recover from unexpected losses.

4. Product Liability Insurance

If a visitor claims that a spirit sample caused illness or injury, product liability insurance can help cover legal and medical costs. This is particularly important for distilleries offering tastings as part of their tours.

5. Event Insurance or Tour-Specific Riders

For occasional or large-scale distillery events, you might consider event insurance. This can cover risks specific to the event, such as additional crowd size, temporary vendors, or entertainment setups. Some policies allow tour-specific add-ons as part of broader coverage.

6. Workers’ Compensation Insurance

If your employees are injured while conducting tours or managing crowds, workers’ comp provides medical and wage replacement benefits. It’s usually a legal requirement and protects both you and your staff.

Tailoring Coverage to Fit Your Distillery

Every distillery is unique, and so are its risks. A small, family-run operation offering weekend tours may have different insurance needs than a large facility with daily bookings and on-site bars. When tailoring your insurance package, consider the following:

• Tour frequency and group size

• Types of activities offered (tasting, blending, bottling experiences)

• Presence of retail or dining areas

• Employee involvement and training

• Venue size and layout

• Location-specific risks (urban vs. rural, climate hazards)

Working with a broker who understands the alcohol industry and small business operations can help you get the most relevant and cost-effective coverage.

Best Practices for Risk Management

While insurance provides financial protection, proactive risk management can reduce the chance of incidents occurring in the first place. Consider implementing the following safety practices:

• Regular staff training on safety protocols, handling emergencies, and dealing with intoxicated guests.

• Clear signage for hazardous areas, wet floors, and emergency exits.

• Guided-only tours to keep visitors from wandering into restricted areas.

• Visitor waivers or disclosures before participation.

• Routine equipment inspections and facility maintenance.

• Security measures during events or busy periods.

Taking these steps not only protects your guests but can also lower your insurance premiums over time.

Conclusion

Understanding insurance for distillery tours is a crucial part of running a safe and successful spirits business. From liability coverage to product protection, the right insurance plan shields your business from the unpredictable nature of hosting the public.

Whether you’re just launching tours or looking to update your current coverage, take the time to evaluate your risks and consult with an experienced insurance professional. In the end, peace of mind for you and safety for your guests is what keeps the spirit of your distillery strong.