Crossword Genius

Rum drunk in place to rest on a British island territory (7)

Ross

I believe the answer is:

bermuda

I'm a little stuck... Click here to teach me more about this clue!

'british island territory' is the definition.
The definition and answer can be both locations as well as being singular nouns.
Maybe there's an association between them I don't understand?

'rum drunk in place to rest on a' is the wordplay.
'drunk' indicates an anagram.
'in' indicates putting letters inside.
'place to rest' becomes 'bed'.
'on' means one lot of letters go next to another.
'rum' with letters rearranged gives 'rmu'.
'rmu' inserted within 'bed' is 'bermud'.
'bermud'+'a'='BERMUDA'

Can you help me to learn more?

(Other definitions for bermuda that I've seen before include "British colony, capital Hamilton" , "Producer of rum" , "Group of islands in West Atlantic - has notorious Triangle" , "British self-governing overseas territory in the North Atlantic" , "shorts originated here" .)

I've seen this clue in The Guardian.
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