Brewery owners and entrepreneurs in the beer industry have precise needs, and agents who fail to recognize that fact may leave their clients open to business-destroying gaps. Having a custom designed brewery insurance program to fit your business’ needs is the first step to protecting it, but what are your needs? Here are some things to keep in mind when preparing to insure your brewery!
General liability will protect you both on the premises, for example in a tasting room, and off the premises, for example at a brew fest or other event. This will also cover personal and advertising injury for situations such as libel and slander.
Other standard liability coverages to include are a fire damage limit and a medical expenses limit.
Product liability will cover anything you sell, this means both beer and merchandise. Some examples of claims that would fall under product liability are:
- Defectively manufactured products: a beer makes someone sick or there is glass in the bottle
- Defectively designed products: use of a poisonous ingredient in a recipe
- Failure to provide sufficient warning or instructions: leaving off an allergy warning label
A basic general liability policy excludes liquor liability coverage for businesses who generate a profit from alcohol. Liquor liability insurance is designed to fill this gap in coverage and may either be added as an endorsement to a general liability policy or purchased separately. Keep in mind, liquor liability won’t replace a general liability policy.
Additional Liability Coverages
- Employee Benefits Liability: protects against administration errors in employee benefit programs
- Hired and Non-Owned Auto: protects your company from business auto claims for vehicles not owned by the company or rented/borrowed from others
- Umbrella: adds additional, higher limit protections for when claims exceed your limits
- Cyber Liability: if you have an email address and a bank account, you have a cyber liability exposure
Protecting your physical location and equipment is important for any small business. That’s where business property insurance comes in. This type of business insurance, also known as commercial property insurance, helps protect your business property, whether you own or rent it. It’s important to note that earthquake and flood are ordinarily excluded.
Some standard property coverages include beer products whether raw materials, in process or finished goods as well as, in some cases, property-in-transit.
Whether they’re stolen, damaged or destroyed, business property insurance can help cover the costs to repair or replace your:
- Personal property located at your business
- Tools and equipment you use for business
- Inventory stored at your office or warehouse
- Furniture, such as couches, desks, chairs and tables
- Computers you use to run your business
- Accounts receivable and other important documents
- Outdoor landscaping, like fences
Equipment Breakdown & Business Income
Equipment breakdown covers the cost to fix or replace equipment that has failed as well as getting equipment working faster to minimize loss. You can also get reimbursed for related goods or loss of materials, such as a spoiled batch of beer due to non-operating equipment.
You may be asking, “what if I’m leasing my equipment?” Although you may not be responsible for the fixes that your broken equipment will need, equipment breakdown insurance is still very necessary. During the time that your equipment is broken your business will likely be losing income due to lack of production. The equipment supplier will fix your equipment, but will not reimburse you for lost income during this time, which is greater than the cost of repairs in a lot of cases.
Brewery Specific and Other Property Coverages
- Off-Site Utilities: direct damage and loss of income
- Leakage: beer spilling or draining from tanks or other containers
- Contamination: cleaning fluids, stray bacteria, yeast etc.
- Selling Price Endorsements: to protect your profit, you should have your endorsement start as early in the manufacturing process as possible
- Business Auto: typically provides for higher policy limits and more complete protection than personal auto
- Workers Compensation: helps protect businesses and their employees from financial loss when an employee is hurt on the job or gets sick from a work-related cause
- Employment Practices Liability: provides coverage to employers against claims made by employees alleging situations like discrimination, wrongful termination or harassment
- Directors & Officers: protects the directors and officers of the company from lawsuits from employees, investors, lenders and others
Questions? Want to learn more? Here’s 4 easy ways to reach us:
PS Here’s a few words from one client that trusts Stromsoe Insurance Agency:
“Dedicated to helping small businesses during these hard times. Great customer service and extremely knowledgeable in their products. Would highly recommend.”
Doris Hess – Relentless Brewing & Spirits – Los Angeles, CA – Client Since 2020
PPS Every policy is backed by our iron clad, 100% complete satisfaction guarantee. Ask for your copy today!