Craft breweries are great. They make beer, a lot of beer, and offer it to their guests. We love that. Some want to have wider distribution whereas others want to stay niche. Regardless of their size or long term goals they both need business insurance. Brewing beer requires specific equipment and ingredients. Brewing beer also requires a unique set of coverage that many other business sectors do not have to consider. This is true especially if a brewery wants to open their doors and serve beer to the public. For most breweries we recommend a specialty policy that encompasses multiple types of protection.
There are three main types of business insurance coverage that best suit craft breweries.
Business owners insurance includes things like general liability and workers compensation. For the majority of businesses, areas of general business insurance are a legal requirement such as workers compensation. Business owners insurance will cover you against claims if somebody is injured on the business premises. For example, the brewer you have just hired trips over a 22lbs bag of mosaic hops and ends up spraining his wrist on the fall. Without business owners insurance he can sue the brewery and he will win because of the lack of insurance.
As a producer of alcohol you will also need a policy that includes liquor liability. Liquor liability insurance will cover you if, for example, a customer claims that your new sour IPA made them sick. This would be sick not from drinking too much of it but if your brew was tainted and caused illness. Whether true or not, defending yourself against these claims can become rather expensive. Making sure you have liquor liability will help keep you in the brew room and out of the court room.
Fires, floods, and other natural disasters can destroy property (whether it be structures or vehicles) causing the owner a vast amount of money and frustration. However, commercial property insurance can protect against the cost of replacing lost or damaged property. Additionally, commercial property insurance can cover any associated losses, such as lost income, that are caused because part or all of your business is temporarily knocked out of action. If that new fermentation tank you just spent $10,000 on has its conical bottom submerged in a flood, commercial property insurance can protect you from the subsequent costs of repairs and replacement. Commercial property insurance can also cover you in the event of theft or a break-in.
Craft breweries need a customized set of business insurance to best operate within their industry.
Trying to find the best options for your brewery? Contact us at Konen Insurance and we can help you craft the perfect policy to keep you covered and keep you making that delicious hop juice.