Knowing how to insure your brewery properly is essential. Regardless of whether you are a specialist craft brewery or a larger operation, you need to buy the best brewery insurance to meet your unique needs and protect yourself from any undue financial stress should you be left to face a disaster or a lawsuit.
Here, we outline the different types of brewery insurance you should buy; and outline the key risks that are faced by large breweries and home or craft brewers alike.
#1 Commercial General Liability and Property Insurance for Breweries
These are two types of insurance that all breweries will need to buy. It gives you coverage against any third-party lawsuits for personal injury or property damage, and it will cover the actual business premises, its stock, equipment, and furnishings from a range of perils. When you consider the cost of your stock and equipment alone, the cost of replacing this can soon start to add up, and for many brewers, this insurance will prevent them from having to cease trading if their premises or equipment were to be damaged beyond repair.
#2 Business Interruption Insurance for a Brewery
Should your business suffer a fire or other covered peril, getting things working again and having your company operations back where they need to be can take a lot of time? When you consider the amount of time it can take to prepare your products, not to mention the waiting times for new equipment to be ordered and delivered, the impact to a brewery is significant. Buying business interruption insurance or business income coverage as it is otherwise known is another essential coverage.
This type of coverage can offer reimbursement or partial reimbursement for the average profit of your company while you are unable to operate following a covered peril.
#3 Employee Insurance for Breweries
If you hire employees at your brewery, then you will need to know your local state laws relating to workers compensation insurance. There are slight differences between each state’s requirements, so you should always check and confirm what your legal obligations are. Buying Workers Compensation Coverage gives you insurance for the medical expenses of your staff should they sustain an injury while at work or develop a work-related illness.
There are many other types of insurance your brewery can buy, many of which can be easily added on to a standard brewer’s insurance policy.
As a brewery, you face a unique set of risks, that standard commercial insurance policies might not always be best suited to cover. When it comes down to the nuts and bolts of your brewery business, you face most of the same risks that any other manufacturing plant does, and in some cases, you have the addition of on-premise liquor services.
Aside from this, you need to also consider the value of your product beyond the cost of the raw materials. For instance, if you have 10k gallons of beer that is completely destroyed in a fire, the raw materials are typically yeast, hops, and water. The value of replacing this stock will be minimal. It doesn’t actually account for the profits you have lost from the time you have already invested in the brewing process.
This is why you need a specialist insurance policy that will cover you for the retail price of the product once it has been mixed, rather than a simple assessment of the cost of the raw materials.
The best way to buy insurance for your brewery is by speaking directly to a commercial insurance agent who understands the processes you have and the work that you do. It is often the easiest way to make sure you buy the best brewery insurance for your needs, and you can often get expert guidance as to the different coverage levels to buy too.
Disclaimer: This information has been written for the public as informational only. Since coverage varies from state to state, it is important to speak to a licensed insurance agent in your state.