In our last post, we talked about how many craft and microbreweries have been popping up throughout the US. Just like any other business, breweries require a specialized set of insurance policies to make sure that the companies are protected from every angle. Commercial general liability, commercial property, product coverage, and workers compensation aren’t the only types of coverage necessary for breweries—here are more policies relevant to breweries:
Breweries require massive, expensive machinery to operate, and when any of that equipment is damaged or destroyed, it can take quite a bit of time to have the pieces repaired or replaced. For this reason, business interruption insurance is usually a good idea for brewery owners—just in case they have to shut down for a few months due to technical difficulties. Business interruption insurance will reimburse a business owner for the average profit that their facility would have generated if it weren’t temporarily closed.
Liquor liability, which we’ve talked about before, is an absolute must for breweries. If anyone files a claim against your company regarding your product, such as alcohol-related traffic accidents after consuming your beer, you need protection. Even if your brewery doesn’t serve alcohol on-site, you still need liquor liability coverage. This type of insurance policy is priced based on the size of the brewery and the number of patrons it serves. Small breweries can often get away with paying less than $10,000 every year for liquor liability insurance because of how many people they serve per year, meanwhile larger breweries can wind up with policies that exceed $100,000.
Even though breweries require hefty insurance policies in order to operate, it doesn’t seem that the necessity has been much of a deterrent to brewery owners. This is likely due to the fact that they know what they’re signing on for before they open their doors.
Brewery owners can purchase their insurance policies from smaller, local providers or larger, national companies—any size provider can accommodate the needs of a brewery. Up until 2008, the Brewers’ Association offered their own insurance plan through a single carrier, but decided to stop in order to create more competition amongst providers within the brewing industry.
If you own a brewery, as it gains momentum, popularity, and growth, it’ll be important to make sure your insurance policy is sufficient to protect all of your assets. As you hire more employees and buy more equipment, you’ll need to increase your policy limits to ensure you’re fully covered. Get in touch with an agent from your insurance provider when you make these kinds of big changes so that you can be sure you have enough insurance.