Being a craft brewer means you’re up against more risks than ruined batches or broken equipment. It’s vital to protect your ideas, make sure your team knows about alcohol liability, and keep your place safe from many dangers. Travelers get it. They offer coverages and services made just for the craft beverage world.
Travelers’ INDUSTRYEdge program is built for breweries. It covers everything from making beer to sending it out. You get insurance for your property, your team, any accidents, vehicles, extra liability, and more, all fitted to what you need1.
Key Takeaways
- Craft brewers need special insurance because they face different kinds of risks.
- Travelers’ INDUSTRYEdge program provides insurance tailored for craft breweries.
- Property insurance keeps your brewery investments safe, like special equipment and supplies.
- General liability and liquor liability policies protect against injury or damage claims.
- Product recall insurance helps cover costs if you need to recall your beer
Importance of Customized Insurance for Breweries
Customized insurance is now a must for breweries as the industry moves forward. It protects against more than just sour brews. It helps keep their ideas safe and teaches staff about serving drinks safely2.
A policy including machine coverage helps fix or replace broken brewing tools. Another covers the cost of lost production or more expensive materials if suppliers fail to deliver on time2. There’s also coverage of customers hurt by others served too much alcohol at the brewery.
Craft Brewers Face Unique Risks
Brewing comes with certain dangers that need special insurance3. It’s true: 3 out of 5 breweries might be sued by employees. So, having the right Employment Practices Liability Insurance (EPLI) is critical.
Equipment breakdowns are also a significant risk. Coverage helps keep the business running during repairs. Plus, if private customer or staff information gets out, Cyber Liability insurance steps in.
Tailored Insurance Solutions for Brewery Operations
Brewers face many unique dangers and need insurance crafted just for them. For example, breweries must consider the environment. Policies for their waste and water needs are available.
Workers’ comp is a must and getting more expensive as breweries grow. Property insurance is vital for protecting brewing gear, and it is a huge investment3.
Breweries need the right auto insurance for their vehicles when it comes to driving. Also, spreading where they get supplies and planning helps avoid big production issues. There’s coverage for lost income in these cases.
Standout events need extra insurance to stay safe. Special crime insurance guards against employee theft and offers full protection, not just what basic policies might cover.
Breweries need to hold certain bonds. These bonds, like those for taxes, liquor, and regulations, are about responsibility and are helped by insurance providers. They’re a crucial part of running a brewery legally.
“SeaFirst Insurance has been commended for its unmatched customer service and expertise, known for quick and accurate issue resolution.”4
SeaFirst is praised for jumping on insurance needs quickly and correctly when needed. They’ve been noted for their professionalism and dependability in insurance4.
Working with a top insurance provider, like SeaFirst Insurance, gives brewers the right tools to protect their business and keep it running smoothly4.
Property and Equipment Breakdown Insurance
Being a brewery owner means keeping your property and equipment safe, which is a top priority for smooth operations. Property Coverage shields your brewery from losses. It covers damages from fires, weather events, and theft5. This protection includes your vital assets like steel vats, spent barley tanks, and glycol chiller systems, which are prone to damage5. The craft beverage industry faces many equipment breakdowns, making Equipment Breakdown Insurance crucial to limit financial risks5.
Protecting Brewery Property and Specialized Equipment
You must insure your brewery property, such as the building and business-related items, at their replacement value6. It’s also wise to cover your beer products and other goods if they spoil or get contaminated5. Specific policies are key for special equipment like boilers and machinery. They safeguard against breakdowns and related damages6.
Business Interruption Coverage for Operational Disruptions
Business Interruption Insurance is essential. It protects your income if a property loss or equipment issue halts your brewery6. It also covers extra costs,, like moving to a temporary place or hiring additional help to ensure your brewery keeps going. Given the big investments in brewing gear7, having the right insurance is crucial. It helps your business survive unexpected stops and keeps it profitable.
“Losses due to equipment breakdown in craft breweries and distilleries are common occurrences, and despite the importance of equipment breakdown insurance, some business owners in the industry still operate without it.”5
| Coverage | Calculation Basis | Additional Details |
|---|---|---|
| Liability Insurance | Rate per $1,000 of sales | Premiums based on revenue |
| Property Coverage | Rate per $100 of property | Includes building, tenant improvements, business personal property, and beer products at replacement cost |
| Umbrella/Excess Liability | Additional $1 million limits | Provides extra layers of coverage |
| Employment Practices Liability | 80% of cases result in employee wins, average cost exceeds $100,000 | Significant exposure for breweries |
| Workers’ Compensation | Rate per $100 of payroll | Potential savings from favorable loss history and safety practices |
General Liability and Liquor Liability Insurance
Being a brewery owner means you must protect against liability claims. Two critical insurances for this are general liability insurance and liquor liability insurance. They help cover injuries and damages connected to your business.
General liability insurance defends your brewery against injury or damage claims. This can happen during tours, at your taproom, or events. It shoulders the costs of legal matters and medical bills from these incidents.
Liquor liability insurance, however, is crucial for incidents off-site caused by your products. It covers costs for issues with drunk people, like legal fees and medical costs.
The price of liquor liability insurance depends on various factors, such as your location or claim history. To reduce costs, adjust your coverage, set clear alcohol rules, and ask about discounts8.
Getting general and liquor liability insurance is critical for a brewery’s safety. They protect you from multiple risks and support your business’s future9.
Product Liability Insurance
Protecting your brew is vital as a brewery owner10. Product recall coverage helps lessen the costs of pulling your drinks from store shelves. This happens if they might harm people10. Also, it covers income lost from packaging mistakes or other product mishaps10.
Product Liability Insurance is vital for a full brewery insurance package11. It shields breweries from legal action or claims. These could be due to your actions, like selling a drink that makes someone sick or causes property damage11. It has an overall and a single-incident cap, ensuring you’re financially protected11.
12 General Liability insurance is at the top of the list for vendor agreements with drink makers12. Every type of drink, from alcohol to new health trends, has its risk factors. It means they need special coverage12. When your standard liability coverage isn’t enough, you can turn to Commercial Umbrella Liability for more protection12.
| Coverage | Description |
|---|---|
| Products Liability | It covers issues like your beer making someone sick or finding foreign objects in it11. |
| Liquor Liability | It focuses on the risks of serving too much alcohol, with its caps on liability11. |
| Contamination and Spoilage | It pays for products that have gone bad because of certain events, like power problems10. |
Special product liability endorsements can also protect you from problems with utility breaks, contamination, and price protection11.
“Keeping your brewery’s products safe is a must. Product Liability Insurance is essential for your insurance coverage.”
Workers’ Compensation Insurance
Your skilled brewers and staff are the heart of your craft brewery’s success13. Workers’ compensation insurance is crucial for protecting them and your business. It’s required in most states to aid employees with work-related injuries or illnesses13. This care includes lost wages and medical costs from job incidents13.
Craft breweries have their own set of risks that require custom insurance13. Your brewery’s size and operations can bring great opportunities and significant risks. Having the right workers’ compensation coverage is vital13. Tailoring your policy ensures your team is rightly protected, depending on what your brewery needs13. Prices for this insurance depend on your specific operations and the coverage’s scope13.
Protecting Skilled Brewers and Staff
The New York State Brewers Association (NYSBA) knows craft breweries’ unique needs14. They offer specialized support, like through the Workers’ Compensation Program. This program, run by Gilroy Kernan & Gilroy, offers competitive rates and annual dividends to members14. NYSBA also helps with discounts on sexual harassment training and health care for staff14.
Understanding specialized workers’ compensation for breweries is key15. The National Council on Compensation Insurance (NCCI) uses many class codes to sort employees15. Wrong classifications mean you might pay more or get a big bill after an audit. For instance, bars typically pay $1.50 per $100 payroll for workers’ comp15. The average cost for liability insurance is about $1,50015. To get the best and most affordable workers’ comp, consider experts like Markel and Accident Fund15.
Investing in workers’ comp can protect and support your team in the craft brewing business13. The right insurance lets you focus on expanding your brewery, knowing your employees are safe from workplace hazards and health issues13.
Commercial Auto Insurance
If you run a brewery, you know how important keeping your delivery vehicles safe is. Commercial auto insurance is critical. It helps cover the costs of auto accidents and damage to your vehicles16.
Also, it supports your employees if they use their cars for work. This way, your brewery is protected from various risks. Given the brewing industry’s challenges, having a solid insurance policy is crucial for managing risks17.
Boost your insurance power with a strong fleet safety program. This includes driver training and keeping up with vehicle maintenance. Doing this can lower the chance of accidents, which means fewer claims18.
| Coverage | Description |
|---|---|
| Liability | Protects your brewery from third-party claims of bodily injury or property damage caused by your vehicles. |
| Physical Damage | It covers the cost of repairing or replacing your delivery vehicles in the event of an accident, theft, or other covered perils. |
| Medical Payments | Provides coverage for medical expenses incurred by you or your employees in the event of an accident. |
| Rental Reimbursement | It helps cover the cost of a rental vehicle while your brewery’s car is being repaired. |
Getting solid Commercial Auto Insurance can help your brewery deal with financial risks from vehicle problems and ensure that your products reach customers safely16.
“Maintaining a well-managed fleet and having the right commercial auto insurance coverage is essential for breweries to protect their business and their employees on the road.” – Industry Expert17
Cyber Insurance
As the craft brewing industry increasingly uses digital tools, solid cyber insurance is critical. Cyber attacks and data breaches can hit breweries hard, no matter their size19. Without the right coverage, the money lost from these events could be huge. Protecting your digital assets is crucial.
Cyber insurance acts as a safety net against online dangers. It helps cover costs from data breaches, like telling customers, offering credit checks, and dealing with law demands19. It also handles financial losses due to cyber-attacks that stop your business, like ransomware.
Protecting Your Brewery’s Digital Infrastructure
Today, tech security is a must for breweries. Cyber insurance is a vital part of protecting against the costs of data breaches and attacks19. By getting this insurance, you ensure your brewery can face the growing cyber threats in the beer world.
| Key Cyber Insurance Considerations for Breweries |
|---|
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Having solid cyber insurance gives your brewery peace of mind. By protecting your digital info, this insurance lets you focus on making great beer and serving customers well20.
“Cyber incidents can have a devastating financial impact on breweries, making cyber insurance coverage an essential safeguard in today’s digital age.”19
To wrap up, cyber insurance is a must with the rise of tech in the brewing world. It defends against cyber problems, ensuring your brewery’s long-term strength and prosperity211920.
Brewery Insurance
The craft beverage industry is growing fast, which means more risks for brewery owners. Specialized insurance is key22. Companies like Nationwide have been insuring breweries for years. They know the specific challenges, so they offer custom insurance to protect these businesses22.
Insurance for breweries focuses on safety first. This can cut down on time lost by employees and in production and reduce insurance expenses22. Many happy clients, including Bottle Logic Brewing, Three Weavers Brewing Com…irie, and Second Chance Beer Co., talk about their excellent experiences. They mention how they saved money by choosing these specialized insurance providers22.
Coverage for craft breweries can protect against many risks, including spoilage, equipment breakdowns, and liability13. Craft brewers might need insurance for general liability, equipment, liquor, and property.
Insurance for the craft beverage scene can cover many aspects. You can get protection for workers’ compensation, property, and more13. These policies safeguard against a lot. They cover injury, property damage, and even liquor issues13.
Craft brewers face unique risks, including business interruptions and contamination costs. Providers like Travelers offer various insurance solutions and support with resources for events and breakdowns1.
Travelers bring over a century of experience. They have a team of more than 500 Risk Control consultants. They’re well-prepared to help craft beverage businesses manage risks1. Choosing the right insurance with their help can keep breweries safe and thriving in the growing market22131.
| Coverage Type | Description |
|---|---|
| General Liability | Protection against bodily injury or property damage allegations on brewery premises or during events. |
| Equipment/Machinery | Coverage for specialized brewery equipment, including protection against leakage, contamination, and loss of income after a property loss. |
| Liquor Liability | Coverage for alcohol-related incidents and claims, such as injuries or property damage caused by intoxicated patrons. |
| Umbrella Coverage | Additional liability coverage extends the limits of other policies, providing an extra layer of protection. |
| Property Insurance | Protection against physical loss, including fire, weather events, and theft, for brewery facilities and equipment. |
| Workers’ Compensation | Provides medical care and lost wages to employees for work-related injuries or diseases. |
Need help with safety or insurance? Breweries can call the Brewery Insurance Program at 855-BREW-INS (273-9467)22. To check out your insurance options and costs or get a quote, contact Paris-Kirwan Associates, Inc. They’re available at 800-724-2627 or 585-473-8000. You can also visit their website and fill out a quote request form13.
“Brewery Insurance Programs emphasize a safety-first mindset, helping to reduce employee and production downtime while lowering insurance costs.”
Inland Marine and Ocean Marine Insurance
For a brewery, ensuring your products get where they need to be safely is key23. Inland marine and ocean marine insurance help keep your brews safe on their journey by any means of transportation. These insurance types cover the risks of moving products, putting your mind at ease24.
Inland marine insurance protects your brewery’s products from many dangers during ground travel. It includes theft, fire, wind, hail, and water harm24. This safety is suitable for any cargo you move, special tools, and displays at fairs24. On the flip side, ocean marine insurance guards your products as they travel by sea, from start to end25.
If your brewery ships items far or does business globally, these insurance types are very valuable23. Also, places that keep others’ things, like storage, can get help protecting the ample assets they look after23.
| Coverage Aspect | Inland Marine Insurance | Ocean Marine Insurance |
|---|---|---|
| Covered Risks | Theft, fire, wind, hail, water damage | Damage during ocean transport |
| Covered Items | Cargo, equipment, trade show exhibits | Goods transported by vessel |
| Coverage Area | Land-based transportation | Ocean-based transportation |
| Coverage Limit | Customizable by policyholder | Customizable by policyholder |
Inland and ocean marine policies help keep your brewery’s goods safe while moving25. Working with skilled insurance pros is your best bet to ensure your brewery’s brews travel safely, no matter where they go232425.
Conclusion
The Craft Beverage Industry is on the rise, which is why Brewery Insurance is more important than ever. It helps protect craft breweries from special risks and keeps their property and products safe2627.
Insurance covers many things for craft brewers. It includes liquor liability and protection from product recalls. It even guards against cyber threats. Thanks to these solutions, brewers can focus on making great drinks. They ensure they’re protected for success in the Craft Beverage Industry262827.
Customized Brewery Insurance is vital for the future. Expert providers can help craft brewers minimize risks, allowing them to continue delighting consumers with their unique products262827.
FAQ
What types of insurance do breweries need?
Why is customized insurance important for breweries?
What types of property and equipment coverage do breweries need?
What liability insurance do breweries need?
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What workers’ compensation coverage do breweries need?
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Source Links
- Craft Brewery Insurance | Travelers Insurance – https://www.travelers.com/business-insurance/manufacturers/craft-brewery
- Brewery Insurance with Nasburg Huggins Insurance – https://www.leavitt.com/coos/ins/brewery-insurance
- Brewery Insurance – Blue Ridge Insurance Services, Inc. – https://brisinc.com/business-insurance/specialized-business-insurance/brewery-insurance/
- The Importance of Insurance for Your Brewery – SeaFirst Insurance – https://www.seafirstinsurance.com/blog/brew-with-confidence-the-importance-of-insurance-for-your-brewery/
- PDF – https://www.phly.com/Files/EquipmentBreakdownLessons Learned-CraftBreweries-Distilleries36-8508.pdf
- PDF – https://www.craftbrewersconference.com/wp-content/uploads/2014_presentations/F1450_John_Hoefer.pdf
- Brewery Insurance – North Carolina – Stanberry Insurance – https://stanberry-ins.com/business-insurance/brewery-insurance/
- Liquor Liability Insurance – https://www.progressivecommercial.com/business-insurance/liquor-liability-insurance/
- Liquor Liability Insurance – https://www.thehartford.com/business-insurance/liquor-liability-insurance
- Brewery Insurance Made Simple: Everything You Need to Know – Allied Insurance Managers – https://alliedinsmgr.com/brewery-insurance-made-simple-everything-you-need-to-know/
- PDF – https://craftbrewersconference.com/wp-content/uploads/2014_presentations/F1450_John_Hoefer.pdf
- Beverage Insurance for Manufacturers, Distributors, Importers Across US – https://specialtyfoodbeverage.com/beverage-insurance/
- Craft Brewery Insurance | Albany, Buffalo, New York City & Syracuse | Paris Kirwan Associates – https://www.paris-kirwan.com/coverage/craft-brewery/
- Member Benefits — New York State Brewers Association – https://newyorkcraftbeer.com/members/benefits/
- Bar Workers’ Compensation | Bar Insurance – https://www.workerscompensationshop.com/workers-comp-programs/bar-insurance
- Brewery Insurance | C&S Insurance – https://www.candsins.com/commercial-insurance-specialties/brewery-insurance/
- Brewery Insurance – https://www.higginbotham.com/business-insurance/specialties/brewery-insurance/
- Brewery Insurance – Westan Insurance Group – https://westaninsurance.com/business-insurance/specialized-business-insurance/brewery-insurance/
- Distillery and Brewery Insurance from RIG – https://team-rig.com/industry-specialties/brewery-insurance/
- How To Insure Your Brewery – https://schins.net/how-to-insure-your-brewery/
- Qualify for a Brewery Insurance Program To Protect Your Business | SmartFinancial – https://smartfinancial.com/brewery-insurance
- Home – Brewery Insurance Program – Total Coverage for Breweries and Brewpubs – https://breweryinsuranceprogram.com/
- What is Inland Marine Insurance? – Four Seasons Insurance Agency – https://www.fsinsuresme.com/what-is-inland-marine-insurance/
- Inland Marine Insurance in Pennsylvania | Spotts Insurance – https://www.leavitt.com/spotts/ins/inland-marine-insurance
- Inland Marine Insurance in Massachusetts | Scotti Insurance Agency, Inc. – https://scottiinsurance.com/inland-marine-insurance-massachusetts/
- Liquor Liability Insurance Explained – Harry Levine Insurance – https://www.harrylevineinsurance.com/liquor-liability-insurance-explained/
- South Carolina Bars, Eateries Closing Down for Lack of Affordable Liability Coverage – https://www.insurancejournal.com/news/southeast/2023/09/18/740648.htm
- Skyrocketing insurance costs are closing bars, businesses. Will SC act in 2024? – https://greenvillejournal.com/eat-drink/skyrocketing-insurance-costs-are-closing-bars-businesses-will-sc-act-in-2024/
