Running craft breweries might sound straightforward to the average person. However, in reality, it involves a lot of hard work. The actual brewing process is just one aspect of the business. There are inherent risks to consider. Most brewery owners focus on production and forget about acquiring the appropriate insurance coverage until they encounter issues.
If you think having general insurance coverage is enough, think again. General insurance covers only your daily operations. If you are a brewery owner, you are liable and responsible not only for the beer that you brew, but also your entire business operations.
To avoid future headaches, you should make a craft brewery insurance policy part of your investment.
What Insurance Coverage Should a Brewery Have?
If you’re only brewing beers, but you do not operate a restaurant or pub, your liability for accidents will be lower, equating to lower insurance needs. When you extend your operations to the public, you expose your business to higher risks needing higher insurance coverage.
For example, if a customer slips and gets hurt while inside your pub, or an intoxicated customer gets involved in a car accident, you might be held liable as the business owner. Serving beers will bring in more money, but the more the public is involved, the more risks you face. So it is in your best interest to be prepared.
Craft breweries should strongly consider having insurance coverage for the following:
Employee Coverage or Worker’s Compensation Insurance
While it is a fun business, brewing beer also has potential risks. As a responsible business owner, you have to ensure your workers have the necessary assistance when they need it.
Workers’ Compensation Insurance will protect your workers from any costs resulting from work-related injuries, including slips, falls cuts and burns.
Liquor Liability
This type of coverage is non-negotiable for any business that sells alcoholic beverages. Liquor Liability insurance provides coverage for injury claims resulting from alcohol intoxication. Even if the brewery owner is not responsible for the customer’s alcohol tolerance limit, the business can still be held liable.
Property Damage
Like having homeowner’s insurance cover your house in case of an emergency, your property insurance will do the same for your business. When discussing this coverage with your insurance company, make sure you clearly define what should be covered. Most of the time, it’s not just the building or production area.
Equipment Breakdown
If your equipment breaks down, it could have a significant negative impact on your business operations. If you are starting your business and are not financially stable enough, this might even result in permanent closure.
You need this coverage to help with the cost of repair or replacement of your equipment so you can resume production.
Tank Collapse and Leakage
One of the significant investments you will need is a container for your product as a brewery owner. After brewing, beer is usually stored in tanks. Hence, you should have insurance coverage for them if one collapses or gets severely damaged.
If there is tank leakage that is not immediately discovered and this is not included in your insurance coverage, you are looking at losing a considerable amount of money. You should also ensure provision or coverage for your other storage containers.
Product Contamination and Spoilage
As a brewery owner, one major cause of headache is discovering that your product has gone bad. Contaminated and spoiled beer would have to be discarded, resulting in loss of income.
Commercial Auto Insurance
Whether you own a delivery van, renting vehicles, or use your car while operating on behalf of the brewery, you should have the right type of auto insurance for protection.
Brewery Protection with Purpose
Being a brewery owner is a rewarding but equally challenging role. Just when you think you have your operations carefully planned out, an accident that negatively impacts your business can throw you off course.
You might be overwhelmed with the complexities of the insurance coverage needed for your brewery, but it is best to be safe than be faced with unexpected expenses that may lead you to go out of business. Aside from brewing, make it your business to know the specific types of insurance you need to help craft breweries selling great beers for as long as possible.
About Arroyo Insurance Services
Arroyo Insurance Services was officially established in 1986, but we have roots dating back to before 1950. One of California’s leading client-oriented and independently owned agencies, we have over 140 employees with a combined experience of over 450 years, spread across 11 locations. We are committed to providing the best insurance and risk management services at the most competitive premiums, and backing it with hands-on service tailored to our customers’ needs. For more information on how we can mitigate your risks, contact us today at (877) 220-4769.