The English wine industry is arguably still in its infancy but it’s undeniably making quite the impact on both the national and international stage. There is also exponential growth, with fifteen new vineyards opening this year alone. The future is sparkling, we hope, but a dynamic, growing industry needs protection for that future to be assured.

As the industry grows, there are big questions for vineyard and winery owners. What would a catastrophe do to your
business? Have you tested what would really happen in the event of a claim? Would your business have a future should the worst happen? The answer, of course, is insurance, insurance, insurance, as your business won’t need just one policy, but a whole suite, for essential future planning. Here’s what you need to consider:

Safeguarding your assets

At a vineyard or winery, these are many. Your precious vines and grapes, your bottles, your premises and equipment. All of these would need replacing after a disaster, so in your armoury you need:

◆ Vineyard infrastructure insurance, for trellises, irrigation systems and other essential vineyard infrastructure.

◆ Grape crop insurance, for coverage against perils such as adverse weather (hail or frost, for example), diseases, pests and other risks. Here is where a partnership with your insurer, using data analytics, can really help secure the future. A wealth of data collected by sensors, drones and satellite imagery – on soil conditions, weather patterns, crop health and more – can allow insurers to more accurately assess risks and create a customised policy.

◆ Your buildings and structures need to be covered: vineyard buildings, wineries, tasting rooms and other structures, against risks like fi re, vandalism and natural disasters. If storing wine – have you considered what its future value will be in 2/3/5/10 years? Does your insurance policy have a simple and pre-agreed basis of settlement?

◆ Protection is needed for equipment and machinery: tractors, harvesters, and processing machinery, and for vehicles to deliver stock, staff or equipment, which need to be insured on a commercial policy.

Business interruption

You may face enormous challenges should your operations have to be halted for any
reason. What would your additional costs be if you were unable/limited to trade? If you had to recover from a devastated harvest, what kind of funds would you need to stay viable until you can resume production? Are you dependent on any suppliers/customers – what would happen if they had a major loss?

Business interruption insurance protects against loss of income following events like floods or fires, rather than the loss itself. This coverage helps with replacing stock, re-establishing production and covering fixed overheads during downtime. This cover also has a chosen indemnity period based on how long it might take your business to become fully operational again.

All the liabilities

In addition, you will most certainly need the following: public liability, product liability, employers’ liability insurance, environmental liability insurance, Directors and Officers (D&O) insurance and cyber insurance.

You may also need specialty insurance for event cancellation insurance or unique risks associated with vineyard tourism activities.

That is quite the suite of products but spending a little time in setting up these policies now may save you a whole barrel of sleepless nights and financial loss in the future.

The future is closer than you think, but it can be secured – to remain as bright and bubbly as your latest vintage – with the right forethought and some comprehensive forward planning.

Ascend Vineyard Protect has competitive insurance programmes specifically designed for the UK wine industry. Contact Ascend today on 01245 449060 or email info@winesandspiritsprotect.co.uk