Storm and Flood Preparation for Breweries and Distilleries

Why September Is the Time to Prepare

Spring brings longer days, busier production schedules and the beginning of another high-trade period for many Australian breweries and distilleries.

It also signals the start of severe thunderstorm season.

The Bureau of Meteorology says the peak season for severe thunderstorms in Australia generally runs from around September through to March or April. Across northern Australia, the wet season runs from October to April, bringing the greatest likelihood of heavy rainfall, severe thunderstorms and tropical cyclones.

By the time a severe weather warning appears, the opportunity to inspect the roof, clear drainage, move vulnerable stock or test the business continuity plan may have already passed.

September is the practical window to prepare.

Why Beverage Production Sites Face Compounding Risks

A brewery or distillery is not a standard commercial tenancy.

It brings together production equipment, electrical controls, refrigerated stock, raw ingredients, finished product, customer areas and often a taproom or cellar door. Water entering one part of the premises can affect several parts of the business at once.

A severe storm may cause direct damage to the roof or building. Heavy rainfall may overwhelm gutters, drains or surrounding infrastructure. A power outage may stop refrigeration, cooling, pumps, security systems or electronic controls. Floodwater may prevent staff, suppliers and customers from accessing the site even when the building itself remains dry.

The result may be more than a repair bill. Production can stop, stock can deteriorate, orders can be missed and the business may lose revenue while wages, rent and other expenses continue.

That is why storm preparation should address both physical protection and business continuity.

1. Inspect How Water Could Enter and Move Through the Site

Start outside the production floor.

Inspect the roof, gutters, downpipes, external drains, doors and low points around the building. Look for corrosion, loose roof materials, blocked drainage and areas where water already pools after ordinary rain.

Queensland’s State Emergency Service recommends keeping roofs in good condition and gutters and downpipes clear so water can drain away quickly. For a brewery or distillery, it is also important to consider what happens after water enters the building.

Ask:

• Are floor drains clear and able to cope with a sudden increase in water?
• Could water run towards switchboards, motors, pumps or control panels?
• Are loading areas, roller doors or cool-room entrances vulnerable to runoff?
• Could blocked stormwater or trade-waste systems force water back into production areas?
• Are portable flood barriers or sandbags available where they would be useful?

The existing Crafted Insurance guide on drainage risk in breweries and distilleries is a useful starting point for the internal floor review.

2. Protect Equipment, Electrical Systems and Stock

Large stainless-steel tanks may survive water exposure, but the systems that keep production moving can be far more vulnerable.

Motors, variable-speed drives, pumps, refrigeration controls, packaging equipment and low-mounted electrical components may be expensive to repair or replace. Water-affected electrical equipment should not simply be switched back on. It may need to be inspected and cleared by an appropriately qualified person before use.

Review the location of:

• switchboards and electrical control panels;
• pumps, compressors and motors;
• packaging-line components;
• refrigeration and glycol-system controls;
• computer servers, point-of-sale equipment and backup drives;
• ingredients, labels, cartons and packaged stock stored at floor level.

Where practical, move portable equipment and vulnerable stock above known water levels. Check that external tanks, gas cylinders, bins, signs, furniture and temporary structures are appropriately secured.

Stock also needs its own plan. A power interruption can affect cool rooms and temperature-controlled product without water ever entering the premises. Confirm which systems have alarms, who receives those alarms after hours and how long temperature-sensitive stock can remain within acceptable limits.

3. Plan for Power, Access and Supplier Disruption

A business can be interrupted even when its own premises escape physical damage.

Queensland Government business guidance notes that floods can cut access and supply routes without directly flooding the premises. For a craft producer, that may affect staff access, CO2 deliveries, packaging supplies, raw materials, outgoing freight or taproom trade.

Map the first 24, 48 and 72 hours of a disruption.

Consider:

• Which equipment must remain powered?
• Is backup power available, suitable and safely maintained?
• Who can isolate equipment if the site must close quickly?
• Can temperature, security and water alarms be monitored remotely?
• Which supplier failure would stop production first?
• Is there an alternative route, supplier, cold-storage location or production partner?
• How will staff, customers, distributors and event organisers be updated?

A business continuity plan does not need to predict every scenario. It should identify the critical functions, decision-makers, contact details and practical alternatives needed to keep the business stable during disruption.

For supply-chain exposures beyond the premises, read Crafted Insurance’s guide to contingent business interruption.

4. Review the Financial Recovery Plan

Property damage and business interruption are related, but they are not the same financial problem.

Property insurance is generally designed to respond to insured physical loss or damage to specified property, subject to the policy wording. Business interruption cover may respond to insured loss of income and certain additional costs following an insured event, depending on the policy’s triggers, limits, indemnity period and exclusions.

Flood is a particularly important term to clarify. The meaning of flood and the availability of cover can depend on the policy and insurer. Stormwater, rainwater runoff, overflowing waterways and water entering through a damaged roof are not necessarily treated in the same way.

Do not wait until water is approaching the premises to find out how the policy defines the event.

Review:

• whether the building, fit-out, plant and stock values are current;
• whether stock values reflect seasonal peaks and product in tanks or barrels;
• whether machinery breakdown or deterioration-of-stock cover is relevant to refrigeration failure;
• how the policy treats storm, flood and escape of liquid;
• whether business interruption sums and the indemnity period reflect a realistic recovery timeline;
• whether prevention-of-access, public-utilities, suppliers or customers extensions apply, and on what terms;
• the excesses, waiting periods, sub-limits and exclusions that may affect a claim.

Insurance does not replace a continuity plan, and preparation does not replace appropriate insurance. The two should work together.

5. Know What to Document Before and After an Event

Good records make it easier to demonstrate what existed before the damage and what happened afterwards.

Before severe weather:

• photograph production areas, plant, stock and building condition;
• keep current asset and stock registers;
• store maintenance, service and inspection records;
• back up financial and operational data away from the premises;
• keep insurer, broker, landlord, electrician, refrigeration technician and emergency contacts accessible;
• record any reasonable protective action taken before the event.

After damage occurs, prioritise people and follow emergency-service directions. Do not enter unsafe areas or use water-affected electrical equipment until it has been assessed appropriately.

When safe, photograph damage before moving items, preserve relevant records and notify your broker or insurer promptly. Avoid disposing of damaged property unless necessary for safety or specifically authorised, and retain receipts for emergency costs.

The correct response will depend on the event and the policy, so early communication matters.

Insurance Questions to Discuss With Your Broker

Before storm season, ask your broker:

1. How does our policy define storm, rainwater and flood?
2. Which buildings, fit-out, plant, stock and customer or supplier goods are insured?
3. Are our replacement values and peak stock values current?
4. What happens if refrigeration or critical machinery stops after a power event?
5. When can business interruption cover respond, and how long is the indemnity period?
6. Are access, utilities, suppliers or customers addressed by the policy?
7. What documentation and immediate steps would be expected after a loss?

The answer will depend on the applicable policy wording, schedule, limits, conditions and exclusions.

A Practical Pre-Storm Checklist

Before the forecast changes:

• inspect the roof, gutters, downpipes and external drainage;
• clear internal floor drains and confirm water flow paths;
• identify low-mounted electrical and control equipment;
• lift vulnerable ingredients, packaging and finished stock where practical;
• test cool-room, refrigeration, water and security alarms;
• confirm the after-hours alarm and emergency contact list;
• back up essential records away from the premises;
• review staff shutdown and evacuation responsibilities;
• map alternatives for power, access, freight and critical supplies;
• review property values, stock values and business interruption settings with your broker.

Prepare Before the Forecast Changes

Storm and flood preparation is not about trying to control the weather. It is about reducing the number of surprises your business must manage at once.

A cleared drain may prevent water from spreading across the production floor. A tested alarm may give the team time to protect refrigerated stock. A current asset register and continuity plan may make recovery more organised. A clear understanding of the insurance program may prevent difficult assumptions after the event.

For specialist advice about risk and insurance for your brewery or distillery, speak with Crafted Insurance before severe weather arrives.