Beer is popular. In fact, over 21 billion liters were produced in America in 2020, making it the second-largest country, after China, in its beer production. So, it’s no surprise that many people are deciding to open breweries.
When starting a business, many things come to the forefront of our minds. However, business insurance isn't usually one of them. As you start hiring brewery employees, involving both customers and investors, and start production, you'll find that your brewery needs insurance. General business insurance may cover some of your business's needs. However, brewery insurance is unique insurance tailored to the industry and to meet the industry's requirements.
Navigating the nuances of brewery insurance can get tricky, which is where we can help. This article is here to cover everything you need to know about brewery insurance to make the best decision.
What is Brewery Insurance?
Brewery insurance offers protection for businesses operating as independent craft breweries that want tailored coverage for their business. Independent breweries are classified as microbreweries, taproom breweries, brewpubs, regional breweries, contract brewing companies, and more. Though brewery insurance is similar to business insurance, there are substantial differences that you may want to take into account. Your brewery insurance should protect you against unexpected incidences or losses.
Why is Brewery Insurance Important?
As with all insurance, brewery insurance provides you and your businesses with protection. Sure, you may go for years without needing to make a claim, but if the moment arises when you need to, you’ll be glad you had the cover for it. Loss, damage, or unexpected incidents could be the difference between your brewery business staying open or not.
Ask yourself what risk you may take on with your business and whether you have enough money to cover these risks should they happen? These questions will help you know which type of brewery insurance is the best fit for you.
What you offer is important too. If you're involved with the public, whether serving them food and drink, providing tours, or covering events, your liability risk increases and needs to be considered. For example, your business may be held to account for the behavior and accidents caused by an intoxicated customer, even after they leave your premises.
Brewery Insurance: What Should It Cover?
Brewery insurance, like business insurance, offers several different elements. These parts are designed to protect you against various problems, incidents, or accidents.
- As you search for insurance, begin to consider:
- - Whether you serve your beer with food to customers
- - The number of locations you serve
- - Whether you provide tours or on-site events
- - Whether you’re selling your beers wholesale
So, what should it offer? But, first, let’s break it down.
General Liability
Similar to what's offered with other types of business insurance policies, general liability protects you from legal responsibilities for things that happened both on or off your business premises due to an interaction with your business.
For example, if someone slips on a tour on your premises and gets injured, this coverage would help pay medical expenses and legal bills if you're taken to court.
Liquor Liability
This is vital for breweries that serve their beer on-site. It protects you against responsibilities for accidents that occur due to intoxicated customers.
For example, if an intoxicated person leaves your bar and then drink-drives and gets into an accident, they could sue you for negligence. This part of the policy is designed to help with legal expenses and help keep you and your business safe.
Property Coverage
This part of the coverage is designed to protect your business property- so where you create your brew, and if you serve customers, where your bar is. Included in this part of the coverage are boiler and machinery coverage. So, if your machine breaks down or gets accidentally damaged, this part of the coverage is there to help.
Miscellaneous Coverage
This section covers, as the name suggests, several different things. Some of the categories that are often covered in this part include:
- Umbrella/excess liability insurance: if your general liability coverage isn’t enough to cover a lawsuit, this will help
- Employment practices liability: this will help protect your business if one of your employees wants to sue the brewery
- Crime and fidelity insurance: this could be losses caused by dishonest employees; credit card forgery; the disappearance or destruction of your property; computer theft, or fraud
- Business autos: covers any cars, vans, or other delivery vehicles used for the business
- Cyber liability: if your business gets hacked or cyber-attacked, this helps protect your brewery from electronic risks and damages caused by your computer system
Lastly, there's worker’s compensation. This covers any medical bills or loss of wages incurred from an injury sustained at work. This will help compensate the workers and protect your business.
Additional Coverage
Getting additional coverage depends on your business needs and is advisable to consider. Additional coverage can also cover several different things, including:
- Contamination and adulteration insurance: to protect you if a customer drinks a contaminated batch and gets ill (whoops!)
- Inland Marine Coverage: protects your products while in transit- either by land or by sea
- Restaurant Cover: If your brewery also operates as a restaurant or in a restaurant, this will help cover several things, including:
- - Sewer backup
- - Electronic data processing coverage (EDP)
- - Utility interruption
- - Employee theft
- - Peak season
Are You Ready to Buy Brewery Insurance?
Running and managing a brewery business is a lot of work. Every day can present new adventures and challenges, so you must think ahead to potential risks to protect your business. You don’t want to find yourself stuck with costs you didn’t foresee, damage you can’t pay for, or liability you can’t face. This could result in your business collapsing.
Business insurance is an option to consider. However, brewery insurance is tailored to cover the risks and challenges faced by the brewery industry. Therefore, you are more likely to get the cover you need with this insurance. If you would like help to discuss your brewery insurance needs, contact us here.
