I have a cask of whiskey maturing in Scotland and a collection of 1940s Macallan. Over the years, the liquid level in the bottles has dropped (ullage), and the cask has lost 15% of its volume. I wanted to claim this “loss of product.” The answer was a resounding “No.”
Key Takeaways
- The “Angels Share” is Excluded: Natural evaporation is considered “Inherent Vice” or “Trade Loss.” No policy covers this.
- Ullage Affects Value: Low fill levels reduce the market value of vintage bottles. This “loss of value” is also not covered because it is natural deterioration.
- Seal Failure vs. Evaporation: If a specific event (like a heat spike) caused the cork to push and the wine to evaporate quickly, you might have a claim for “Spoilage.” Gradual loss over 20 years is never covered.
- Cask Insurance: For cask investors, insurance covers fire, theft, and leakage (a burst hoop), but never the natural 2% annual evaporation.
The “Why” (The Trap)
Insurance covers Accidents, not Physics. Liquid evaporates. Corks breathe. This is the nature of the asset. Policies contain strict exclusions for “Wear and Tear,” “Gradual Deterioration,” and “Atmospheric Conditions.”
The Investigation (I Called Them)
I checked with cask investment insurers (like Braeburn Whisky).
- The Rule: “We insure the cask against bursting or burning. We do not insure the volume against time.”
Comparison Table
| Scenario | Covered? | Reason |
| Natural Evaporation | No | Inherent Vice |
| Leaking Cask (Burst Hoop) | Yes | Accidental Damage |
| Low Fill (Vintage Bottle) | No | Gradual Deterioration |
| Leaking Bottle (Heat Event) | Yes | Spoilage (if heat is covered) |
Step-by-Step Action Plan
- Measure Ullage Annually: Take photos of your high-value bottles against a ruler. This tracks the rate of loss.
- [IMAGE: Diagram showing wine fill levels: Into Neck, Top Shoulder, Mid Shoulder]
- Re-Corking Clinics: For wine, send bottles to the winery’s “re-corking clinic” (e.g., Penfolds). They will top it up and re-cork it. This restores the value and is a maintenance cost, not an insurance claim.
- Parafilm: Wrap the capsules of long-term storage bottles in Parafilm to reduce gas exchange.
FAQ
Can I claim “Loss of Value” if the fill is low?
No. That is like claiming loss of value on a car because the tires wore down.
What if the cork falls in?
If the cork falls in spontaneously, it’s inherent vice. If you push it in by accident, it’s breakage/accidental damage (covered by some policies).