I saw empty bottles of Pappy Van Winkle selling on eBay for $300. I thought, “I have three empties, that’s easy money.” I sold them. Six months later, I got a call from an investigator. The bottles had been refilled with cheap bourbon, resealed, and sold as new for $2,500. I was being looked at as an accessory to fraud. I called my lawyer, then my insurer. My insurer said, “We don’t cover criminal defense.”
Key Takeaways
- Uninsurable Activity: Facilitating counterfeiting (even unknowingly) is a crime or a civil fraud. Insurance covers negligence, not illegal acts.
- Trademark Infringement: Selling empty bottles with trademarked labels for the purpose of refilling can get you sued by the distillery (e.g., Buffalo Trace). Your liability insurance excludes “Intellectual Property” disputes.
- Zero Asset Value: Empty bottles have no insurable value to a carrier. You cannot schedule “3 Empty Bottles” for $900.
- The “Clean Hands” Doctrine: If you are involved in the supply chain of a fraud (selling the packaging), the courts often deny you protection.
The “Why” (The Trap)
The trap is “Intentional Acts” and “Public Policy.”
It is against public policy to insure someone against the consequences of breaking the law. Even if you didn’t know they would be refilled, selling high-value anti-counterfeit packaging is legally perilous.
The Investigation (I Talked to a Lawyer)
- The Risk: “If you sell an empty bottle, and that bottle is used to scam someone, you are in the chain of causation. The distillery can sue you for contributory trademark infringement.”
- The Insurance: “Your Personal Liability (Umbrella) policy excludes ‘Business Pursuits’ and ‘Intentional Acts.’ Selling empties on eBay is a business transaction. You are on your own.”
Comparison Table
| Item | Insurable Value | Liability Risk |
| Full Bottle (Pappy 23) | $5,000+ | Low |
| Empty Bottle (Pappy 23) | $0 | High (Fraud Facilitation) |
| Decanter (Crystal) | $500 | None |
Step-by-Step Action Plan
- Smash the Empties: This is the only safe way. Put them in the recycling bin.
- Or, Deface the Label: If you want to keep it as a souvenir, scratch a giant “X” or write “EMPTY” in permanent marker on the back label so it cannot be resold.
- [IMAGE: Photo of a high-end whiskey bottle with the back label scored/marked with a sharpie]
- Do Not Sell on eBay: The $200 isn’t worth the legal risk. eBay has cracked down on this in 2026, and your account could be banned.
FAQ
Can I give the empty bottle to a friend?
Yes, that’s fine. You aren’t profiting.
What if I make a lamp out of it?
That is “Upcycling.” It is generally legal and insurable as a home furnishing.