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Not too far from my place...


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Once again, would be very nice to know exactly how this happened. We should all be keen to learn. Lots of photos of thier setup and install on Instagram. Glad noone was hurt.

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Looking at their pictures I didn't see any PRV/VRVs on either still. They're also making vodka with a six plate column. So maybe they're charging it with really high proof? With all the fires I'm worried we will all become uninsurable, or rates will skyrocket. Is that a legitimate concern@InsuranceMan 2.0 ?

I was speaking to someone over Facebook about a climbing magazine that used to do incident reports when deadly or serious accidents happened, picking it apart to help avoid future mistakes. Could one of the trade magazines do similar reporting?

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8 hours ago, adamOVD said:

I was speaking to someone over Facebook about a climbing magazine that used to do incident reports when deadly or serious accidents happened, picking it apart to help avoid future mistakes. Could one of the trade magazines do similar reporting?

It would be great if ADI or ACSA did that.

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  • 2 weeks later...

     @adamOVD, insurance claims are based mainly on two different factors: Frequency and Severity.  What this means is that one or two MAJOR claims can affect a distilleries ability to find insurance (severity).  As well, a flurry of smaller claims that have happened frequently (within a year or two period) can have a similar outcome due to the fact that there would seemingly be a "business practice" issue (frequency). 

     The basic premise of insurance is that carriers pool funds from many to cover the losses of the few, thereby keeping premiums lower for the many.  However, large catastrophic losses like the Heaven Hill fire in 1996 can have a monumental impact on everyone.  Case in point, the underwriter that was on that particular risk then went on to be the head of a specialty division with another carrier and would not touch distilleries for years and years.

     To the point though, a loss here and there of this size should not impact the overall availability or cost of the rest of the distilleries out there.  There are several carriers that will write distilleries, so the spread of risk is enough that a loss to one of six carriers should not affect the overall marketplace.  I will say this though, ALL of the underwriters pay attention to any losses, whether they are on it or not.  When Barton lost a bunch of barrels due to collapse, and then around a year later, O.S. Tyler had a collapse, that put the underwriting world on edge!!!

     In contrast, when Silver Trail blew up (so sad), underwriters paid attention, but it really did not affect the overall marketplace.  Long Answer short, this kind of a loss, albeit sad, should not impact the overall rate or availability of distillery insurance.  Maybe some carriers that were thinking about entering the marketplace may be scared off, but this really just is not a big enough loss to have much of an impact.

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