Your Guide to Brewery Insurance

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

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

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

Liquor Liability

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

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Property Coverage

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:

Phone: 877-994-6787
Email: insure@siaonline.com
Text: 951-482-8144
Web: www.siaonline.com

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!

What Types of Insurance Do You Need If Your Business Operates Online?

Cyber Liability

Your digital business should secure itself and its information while online. In the event of a data breach, cyber liability insurance will protect your business IF you have the right coverage forms. If information is hacked or leaked, it’s not a pleasant experience when the information is stolen AND there are high costs associated with the aftermath of an information leak. A robust cyber liability insurance policy can protect you and your business. These overages and more should be included:

  • Ransomware expenses
  • All Inclusive Business interruption costs
  • Computer restoration
  • Comprehensive Cyber Crime, including “Cryptojacking”
  • Public relations help
  • Hardware replacement
  • Legal fees
  • No risk management warranties
  • Unlimited first party reinstatement
  • Risk management services included
  • 24/7 Claims hotline with advice from Cyber Specialists
  • $-0 deductible
  • 90 forensic experts and data breach attorneys at your fingertips

Commercial General Liability

Commercial General Liability is comprehensive insurance, making it a must for the owners of online companies. It offers compensation for accidents and damage to property that occur at the premises of the company. Remember, if you’re selling a product and someone gets hurt by it, the manufacturer might be sued, but you likely will also be sued.

And As You Grow, Don’t Forget About:

Employment Practices Liability

You will need to start thinking more about defending yourself and your company as your company expands and you continue to hire more employees. Everybody wants a healthy work environment, but the fact is, there will be issues with employees. Whether or not the concerns are valid, they are important and you should be covered.

Employment practices liability covers businesses from things like:

  • Discrimination
  • Wrongful termination
  • Harassment
  • Invasion of privacy
  • Negligent evaluation
  • Mismanagement of employee benefits
  • Miscellaneous employment-related issues

Who are covered by the liability insurance plans for work practices? You, the proprietor of the company, are safe. There are the higher-ranking staff, such as managers or directors. There are also some policies that will protect employees.

 

Workers Compensation

Have you hired employees for your business? If so, you need workers compensation insurance policy. Accidents happen and you want to be prepared for them.

A workers compensation policy protects the workers for injuries and illnesses that occur when they’re on the job. If an employee needs time off to heal, then this is also covered. Workers compensation is also helpful if an employee is taking disciplinary action over an accident related to the work. Any legal costs related to litigation can be protected by the insurance policy for the job.

It’s important to provide and promote a safe working environment, but it’s also important to be covered by insurance when accidents happen.

 

Questions? Want to learn more? Here’s 4 easy ways to reach us:

Phone: 877.994.6787
Email: insure@siaonline.com
Text: 951-482-8144
Web: www.siaonline.com

PS Here’s a few words from one business owners that trust Stromsoe Insurance Agency:
“SIA has been our insurance partner of choice for more years than I can remember. They take care of everything – our business, rental properties and all of our personal policies. We have always been impressed with the level of customer service and they always go the extra mile to make sure we are well taken care of. The SIA team is always there when we need them the most. Most importantly, we trust them !!       Stefani and James Laszko – Mythos Technology, Temecula, CA  – Client since 1999

PPS Every policy is backed by our iron clad, 100% complete satisfaction guarantee. Ask for your copy today!

If You have a Business Email and a Bank Account – You are at Risk

 

Greetings everybody. My name is Mike Stromsoe. I’m the President and one of the team leaders at Stromsoe Insurance Agency. And I am uber pumped and excited today in our ongoing series to better protect business owners and everything that they face out there in running their business. And we have something that has become a very big risk very quickly in today’s environment. So I am proud to have with us today, Mr. Michael Armstrong. He’s one of our business partners and I don’t know of anybody that has more knowledge and a better product out there to better protect business owners and their risks against cyber liability.

Here’s just a few key points that we touched on, watch the full interview above for all of the information to protect you and your business:

Why insurance? Why cyber insurance?

Let’s talk about businesses and their vulnerability to cyber attacks in today’s marketplace. I mean, who’s vulnerable out there?

Every single business is vulnerable to a cyber attack. When you’re looking at some of the largest top cyber attack breaches, the familiar names of Target, Facebook, Google, Marriott, some of the largest corporations within the US have also suffered some of the largest cyber attacks. And these are companies that invest millions of dollars into cyber security and the procedures implemented to mitigate those losses. So with that being said, as a small to midsize business owner, the vulnerability is there for too, and the exposure is there.

There are four things I really look at:

  1. Businesses that collect sensitive data (clients, employees, customers, whoever it may be).

They are collecting the name, address, phone number, banking, information, etc.

  1. Every business is performing financial transactions.

It’s essential to their growth and it helps a flourishing economy, which is something we all want and love to see.  So that brings me to a certain point. And this is a strong claim and exposure we see in our industry, which is called a fund transfer fraud, also known as social engineering. This is the second most common claim we handle. And so with that being said, what that entails is, simply put, a hacker is able to socially engineer or dupe an employee or senior level executive officer into sending money to the wrong place.

What businesses need to understand is that there’s two pieces of information that hackers need to carry out this sort of attack. It’s business email and bank account, which every business, if not most, have. And that already makes them exposed to one of the most common claims we handle.

  1. Businesses are relying on technology, now more than ever.

So in 2016, Microsoft released an annual report with the prediction that by 2020, there’ll be four billion active internet users. Right now there’s about 4.4 to 4.5 billion, which is close to 60% of our total population. So in 2019, most recently, they reported by 2030, there’ll be 50 billion connected devices on the internet.

What does this mean to us? Well, this means that with the more and more connected devices, there’s going to be a higher volume of data being transferred back and forth. So the exposure and the challenge of protecting businesses from targeted attacks is going to be very difficult at this day and age.

  1. The human error aspect.

Human error is arguably the number one cause of any cyber-attack that we handle. And so as a business owner, you need to consider, truly consider, are my employees taking the safest measures? Do we have the best practices and procedures in place?

 

Two exposure brackets:

First party costs are as a business we’ve been hacked that’s notification costs, identity theft, monitoring services, cyber crime business or interruption, and so forth. So based on our analysis and our data, close to 96% of the claims we’ve handled are associated with first party costs. And this ties into the innovation factor that Evolve brings. We consider ourselves the pioneers of cyber product innovation. For our first party costs, there is no aggregate on the first party limit. So as a business owner, you ask yourself, how many transactions am I making a year? 50 to a 100. So then you take into effect that on each unrelated incident that could happen within that policy period, that’s reloading.

Third party costs. This is, as a business, we’re being sued as a result of a cyber attack. And that’s privacy liability or network liability. But those only account for close to 4% of the claims that we’re handling. So what businesses need to understand is our goal in handling these claims because they’re very specific on each individual case, but ultimately our goal is to get that business is back up and running as quickly as possible and in doing so handle them so effectively that we avoid those third party costs.

 

What type of increased exposures might employers be facing right now, especially with the remote working environment that we’re in right now?

With any business, one of the key aspects of running a successful business is to be able to adapt to the unpredictable and unprecedented situation. And this is one of those situations. And unfortunately in my field, these are the situations that hackers flourish on. They love to take advantage.

FBI reported on April 1, 2020, they issued a press release warning all businesses and individuals that cyber actors will be taking advantage of the situation due to the high volume of virtual networks and virtual environments. It doesn’t matter whether you’re the government, private sectors, private organizations, or individuals. And this is related to COVID-19 and employees and companies now having to work remote.

Before then, by March 30th, they had received and reviewed 1200 claims specifically directly related to COVID-19. So again, emphasizing the fact that this is a hacker’s paradise. This is what they prey on is that human vulnerability, that human error.

We’re passionate about cyber insurance and we’re just helping people with that fighting chance to save their businesses and everything they worked so hard for and everything that they built.  So if you’re watching this and you have any questions about cyber insurance at all, we just want to help educate, we just want to help protect people, don’t hesitate to reach out and have a conversation with us.

Connect with us today:

Phone: 951-600-5751

Text: 951-482-8144

Email: insure@siaonline.com

 

“SIA has been our insurance partner of choice for more years than I can remember. They take care of everything – our business, rental properties and all of our personal policies. We have always been impressed with the level of customer service and they always go the extra mile to make sure we are well taken care of. The SIA team is always there when I need their assistance the most. Most importantly – we trust them!”

Stefani & James Laszko

Mythos Technology – Temecula, CA – Client Since 1999

Why Your Business Needs Cyber Liability Insurance

As business owners, you constantly make decisions about which physical assets are necessary to insure. However, do you ever consider cyber insurance to protect the non-physical assets, and most important aspect of your business? Business owners rarely understand just how catastrophic a data loss can be. Technology offers a great deal of conveniences, but also poses a lot of risks. We rely on technology for almost everything nowadays, and need to take the necessary precautions by purchasing cyber insurance.

There has been a steady increase in the number of cyber insurance policy purchases, especially within the last three years. People are starting to realize that hackers will always be a step ahead, and cyber insurance is the only way to protect your business from a data breach. Breaches are becoming increasingly more common, and it only takes a few keystrokes for a hacker to gain access to all of your personal and private information.

However, it is not just hackers who can be responsible for your data loss. Almost two-thirds of data breaches are due to human errors and system glitches. Even if you encrypt your files, you have not done as much as you can to protect your business from a breach. Right now, only about twenty percent of businesses have cyber insurance. In a few years, cyber insurance will become a norm. Keep in mind that just because you do not own a large-scale company, does not mean you have a decreased risk for data breaches or cyber-crimes. The majority of breaches take place at smaller companies with less than 100 employees.

Stromsoe Insurance Agency is ready to help you protect your business, contact them today about commercial insurance. Stromsoe Insurance Agency is sure to meet all of your insurance needs!