Ensuring your fine wine, whisky, and spirits stocks are adequately insured in transit

As the festive season approaches, the fine wine, whisky, and spirits industries are busily transporting stock to meet the heightened demand. During this critical period (along with its wintry weather and increased thefts), ensuring your stock is adequately insured is vital. This will help to avoid unexpected losses or liabilities.

Misunderstandings about insurance cover can leave businesses vulnerable, so let’s explore key considerations from an insurance perspective.

 

1_The transportation vehicle(s)

Most insurance policies stipulate the use of specialist third-party carriers for transporting goods. While it is possible to include your own vehicle in the policy, be aware that insurers often place a cap on the stock’s value that they will cover.

When arranging insurance for transportation, it is crucial to specify both the volume and the value of the stock being moved. This ensures your policy accurately reflects the potential risk and provides appropriate cover.

 

2_Geographic considerations

Transportation insurance is typically arranged by territory, so it's essential to discuss with your insurance broker the regions where your goods will be transported to or from.

Keep in mind that the broader the geographic cover will often result in higher premiums. Additionally, some regions, particularly those experiencing war or conflict, may be excluded from insurance policies altogether.

 

3_Transporting bonded stock: don’t forget the duty

If you’re moving stock in bond—even between bonded warehouses—it’s important to ensure your insurance policy covers the duty payable. In the unfortunate event of damage during transit, HMRC may still require the duty to be paid.

Most insurance policies can include duty cover, but only if you've provided the insurer with the relevant duty value. If you need clarification, check with your insurer to ensure duty is covered.

 

4_Security measures

To protect high-value goods during transit, insurers often require specific security measures. These may include:

• Using hard-sided vehicles


• Employing two drivers


• Installing trackers


• Ensuring the stock is never left unattended during transit

Be prepared to demonstrate that you’ve taken reasonable steps to prevent theft or damage, as this will be a key factor in validating any claims.

 

5_Packaging, loading, and unloading

Proper packaging and secure loading are essential to avoid damage during transit. Working with specialist carriers that use robust and secure vehicles is a wise investment. Ensure that stock is securely tethered, palletised, and shrink-wrapped for protection.

Check your policy's conditions, as insurers often specify expectations for transportation packaging.

Be aware that, once a delivery is signed for at its destination, your insurance cover typically ends and insurance responsibility for the goods transfers to the recipient.

 

Summary

To ensure you have sufficient cover for your valuable cargo, always inform your insurer of your shipments' value, size, and frequency. This allows them to tailor a policy that fully protects your goods.

Underinsurance during transportation is a risk, but it’s one that can be avoided with the right advice and planning. If you would like to review your current insurance arrangements or discuss a tailored policy, our friendly specialists are here to help.

Contact us at +44 (0) 20 3150 0080 or email info@fidentiains.com to request a callback.

Protect your stock and your peace of mind this festive season and beyond.