Michigan Brewery Insurance Policy Information
Michigan Brewery Insurance. Breweries are coming on the scene every year, and beer drinkers are getting more variety in the type of beer they can have. For beer drinkers, this is good news because now they can have the perfect brew to go with anything they want. Right now there are over 2300 breweries in the U.S. Even with this high number each brewery is different. If you're the owner of a brewery, then you must do everything in your power to protect your business. The way to do this is to get the right Michigan brewery insurance for your business.
Breweries produce beer and beer products from grain that has been ground or milled, boiled, filtered, fermented, and aged. The final product is packaged, usually in glass or metal containers, labeled, and stored or distributed to retailers and concessionaires. Operations may include a number of warehouses for storage of finished goods. Smaller breweries ("microbreweries," "brewpubs," or "craft brewers") may have a retail store selling directly to the general public or facilities for on-premises consumption, such as a full-service restaurant.
Michigan brewery insurance protects your brewing company from lawsuits with rates as low as $77/mo. Get a fast quote and your certificate of insurance now.
Manufacturing Risks In The Brewing Process
There are many risks involved in the production of beer. For you to get the best insurance for your MI brewery, the first thing you must consider is - the type of brewery you operate. You must take into considerating if you'll be offering a tasting room, pub or restaurant. Whatever it is you should be thinking about it when choosing your Michigan brewery insurance coverage. In any business, the things that happen that you didn't prepare for can bankrupt your business without the proper coverage.
Brewery Insurance Policies
Running brewing company operation puts you at the many risks that come with it. The last thing you want happening is your business suffering because you didn't take action to protect it.
Here are some insurance plans you can consider for your business:
Business property coverage: This type of Michigan brewery insurance protects the building and the contents in them which you may be using to operate your business. With the unpredictable happening in life such as fire, inclement weather, and theft your business could face lots of damage. Having this type of insurance keeps your business covered.
Another thing you must ensure is that your business property policy includes coverage for business interruption. If you ever have to relocate, or can't operate this insurance pays for lost income and other expenses.
Commercial auto insurance: Having this type of insurance plan in place protects the vehicles you use in the operation of your business. Also, you can get hired or non-owned vehicle insurance if your employees use their personal vehicles for business reasons.
Employment practices liability: This type of coverage keeps you covered if your company is sued by an employee who claims that you are involved in discriminatory employment activity.
Crime coverage: with this type of insurance your business is protected if an employee or a group of employees engages in theft while working for you.
Workers Compensation: This coverage is a very important part of your insurance coverage. Without it, you won't be able to operate in most states if you have any non-owner employees. Having this coverage for your business will help if an employee is hurt while on the job. If an employee is injured and needs medical attention because you have this coverage, all expenses are covered.
Cyber liability insurance: If you don't take the time to secure your business network properly then you could risk a breach of information on your network. If a cyber breach ever happens in your business, this is the type of protection to keep you covered.
Other Insurance Polices To Consider
Tank collapse coverage: If a tank collapses this insurance will cover all expenses as a result of the collapse.
Restaurant property coverage: If a restaurant is a part of your brewing business this insurance keeps the equipment you use in your restaurant covered.
MI Breweries' Risks & Exposures
Property exposure is high. Ignition sources include electrical wiring, heating and air conditioning systems, production equipment and machinery, and refrigeration/cooling equipment. Combustibles include the fuel sources for the equipment or machinery used in processing, dust from grain that can explode, finished alcoholic products, and packaging materials. All machinery must be inspected and maintained regularly to avoid wear and tear or overheating losses. Wiring must be up to date and of sufficient capacity. All machinery should be grounded to prevent static buildup and discharge.
There should be adequate ventilation systems in place to prevent dust from grains from building up and spontaneously combusting. Due to its combustibility, an ammonia detection system should be in place if ammonia is used as a refrigerant. With any food product, even a small fire loss can be significant as state, local or federal regulations may require the disposal of major portions of stock and raw materials that have been exposed to fire, smoke, heat or water.
Procedures for recycling and for cleaning and sterilizing bottles should be in place. Separation of raw material, processing, and final product are important in controlling the exposure to fire loss. Business income exposure may be high due to the use of specialized machinery and equipment that may be difficult to repair or replace quickly.
Equipment breakdown exposure is high due to the automated machinery and equipment which can malfunction or break down. All machinery and equipment must be regularly inspected and maintained as a lengthy breakdown to brewery machinery could result in severe loss, both direct and under time element. If there are boilers, operational safety valves must be in place.
Premises liability exposure is light if visitor access is limited. If tours are given, the brewer should meet all life safety codes to assure visitor safety, especially from exploding containers. Good housekeeping and nonslip flooring finishes are critical to minimize slips and falls. Spills of liquids should be promptly cleaned up and warning signs posted. Exits should be clearly marked and free of obstacles. Adequate interior and exterior lighting should be available in the event of a power outage.
Parking lots and sidewalks need to be in good repair, with snow and ice removed, and generally level. Premises liquor liability hazards will increase if samples are handed out. The off-premises exposure is high if delivery drivers stock shelves for customers. Contractual liability may be a concern if there is a sidetrack agreement.
Liquor liability exposure is limited unless alcohol is served or sold on premises. If tours are conducted, alcohol must be given or sold only to those who can prove they are of legal age. Employees must be trained not to serve alcoholic beverages to those who are intoxicated.
Products exposures are moderate due to the possibility of contamination, spoilage, foreign objects in containers, or explosion from a pressurized canister. Raw materials may be imported from foreign countries. Incoming materials should be inspected before accepted. The workplace must meet all FDA specifications for sanitary working conditions and be arranged to prevent foreign substances from entering the processing area. An on-site testing laboratory is recommended to verify quality control.
Pest control and the chemical applications used are key processes to evaluate. Stock dating and rotation are important factors. If by-products of the brewing operation are sold elsewhere, such as brewer's yeast, grain for feed and vitamins, or carbon dioxide, the additional products hazards must be checked carefully. Warning labels must be in place indicating the potential damage of alcohol to unborn children. An effective recall program must be in place that can be activated immediately.
Environmental impairment exposure is from underground fuel storage, leakage or refrigerants such as ammonia and chlorofluorocarbons, and waste disposal. Storage and waste disposal must comply with all federal and state requirements. Outside contractors should remove waste from the site on a regular basis. If wastewater is discharged into public waterways, a permit must be obtained from the EPA. The presence of underground storage tanks usually means that a UST policy must be purchased.
Workers compensation exposure can result from burns caused by the cooking process or machinery and equipment, cuts or accidental dismemberment from rotating blades or moving parts on machinery, back injuries or hernias from lifting, foreign objects in the eye, and slips and falls from inadequate housekeeping in processing areas. All machinery must be properly guarded. Employees may be exposed to chemicals or excessive noise.
Adequate safety equipment should be required for employees in processing areas. Forklifts should be equipped with backup alarms and be refueled in well-ventilated areas. As with products liability exposure, there is potential injury to workers from exploding pressurized containers, or other injury from major explosions in the workplace.
Anhydrous ammonia refrigerants are poisonous when leaked into confined spaces such as coolers. Controls must be in place to maintain, check, and prevent such injury. Employees delivering goods to customers can be injured in vehicle accidents or during robberies.
Crime exposure is employee dishonesty of both inventory and money. Background checks should be conducted on all employees. The inventory must be under the supervision of more than one individual so that there are checks and balances. There must be a separation of duties between persons handling deposits and disbursements and handling bank statements.
Regular audits by an outside firm should be conducted. Loading docks should be supervised to minimize employee theft of finished goods. If drivers pick up checks or accept any money, there is both an employee dishonesty and theft of money and securities concern. Receipts should be issued for any cash payments received.
Inland marine exposure comes from accounts receivable if the brewer bills customers, computers (which may include computer-run production equipment), contractors' equipment for forklifts, goods in transit, and valuable papers and records. Finished products are transported on company-owned trucks. Any overturn or collision could cause a total loss due to the fragility glass containers and the possibility of contamination.
All loads must be secured to prevent shifting during transport. Valuable papers and records include proprietary formulas, inventory records, customer files, and contracts with suppliers and distributors.
Commercial auto exposures are usually significant as delivery is an ongoing part of the operation. Deliveries may be made in darkness, during inclement weather, or on small roads or streets where there is little margin of error. Drivers should be assigned to routes to increase their familiarity with traffic patterns. Because many deliveries are made to grocery stores, drivers must be trained to be aware of the presence of children around and behind the vehicles.
Drivers must have a commercial license and acceptable MVRs. Random drug checks should be conducted. For long-haul deliveries, drivers may not exceed DOT standards for the number of hours worked per day and per week. If containers of anhydrous ammonia are being transported, they must be secured in the cargo area to prevent asphyxiating the driver due to leakage. All vehicles must be well maintained with records kept in a central location.
Brewing Company Coverage
When you own a business, the first concern is the safety of that business. In brewing, many things can go wrong, but you always want to ensure you are safe. If there is something that goes wrong in your business and you do not have the right insurance in place, you could lose everything. You don't have to risk losing everything by a lawsuit choose to protect your business today and get the right insurance coverage plan.
Michigan Economic Data And Business Insurance Requirements
Business owners who are interested in establishing operations Michigan must have a thorough understanding of the state's economy. They should also familiarize themselves with any regulations and limits that state may have in place for commercial insurance.
Any entrepreneur who is thinking about starting a business in the Great Lake State first needs to determine if it's a feasible location for business operations. As such, it's important to have a keen understanding of pertinent details regarding the economy of Michigan, in addition to the types of insurance coverage that are mandatory for corporations that operate within the state.
Economic Trends for Businesses In Michigan
After a long period of stagnant job growth in the early part of the 21st century, MI has been experiencing a steady increase in employment gains. Between 2009 and 2018, the state has enjoyed a period of uninterrupted job growth; the longest stretch of job growth since World War II. According to economists at the University of Michigan. While there has been a slight decline in the rate of job growth, job creation continues and forecasters say will continue for the next two years, into 2021.
In 2018, an estimated 55,200 jobs were created; in 2019, it's expected that 35,800 jobs will be created, and in 2020, economists believe that there will be a total of 39,300 jobs created in Michigan. While that rate of growth is 1.9 percent slower than the job growth rate between 2011 and 2016, it is still a steady increase overall. In total, approximate 683,200 jobs will be created in MI between 2099 and 2020; almost four out of the five jobs that were lost during the early part of the 21st century will be recovered.
While the unemployment rate has steadily improved, it is still above the national average. In March of 2019, the national unemployment rate was 3.8 percent, while in the state of Michigan, it was 4.0 percent. Mid-Michigan has experienced the largest growth rate in the state, and according to forecasters, it looks like that trend will continue, moving forward. Industries that are expected to see the most growth include:
- Energy, due largely to research and development in clean energy
- Food and agriculture
- Transportation and mobility
- Healthcare industry
- Information and technology
In the state of MI, business owners are not legally required to carry liability insurance; but most entrepreneurs opt to invest in a General Liability or Business Owner's Policy (BOP). A commercial auto insurance policy is also required for any businesses that use motor vehicles to conduct any aspect of their business operations. Workers' compensation insurance is also required for any businesses with non-owner employees. While the following forms of coverage are not required, depending on the type of business you operate, they are recommended:
- Data breach insurance
- Business income insurance
- Commercial Umbrella insurance
Additional Resources For Food Service Insurance
Learn about restaurants, bars, liquor stores commercial insurance coverages. See how small business food service insurance help protect against accidents, oversights and lawsuits resulting from business operations.
- Bagel Shop
- Beer Distributor
- Coffee Shop
- Concession Stand
- Farmers Market
- Grocery Store
- Ice Cream Shop
- Internet Cafe
- Liquor Liability
- Liquor Store
- Sandwich Shops
Bars, taverns, restaurants, cafeterias, and other eating and drinking places have significant insurance needs in three separate areas.
The first is property protection for physical damage to equipment, furnishings, building and supplies due to fire and other perils.
The second is premises liability coverage to protect customers due to slips, trips and falls on the premises, as well as for consumption of food products.
The final need is protection for employees due to frequent cuts, burns and other common employee injuries. Establishments that sell or serve liquor or other alcoholic beverages also need liquor liability coverage.
Slips and falls, along with customer illness due to being served tainted food or drink, are the primary liability exposures. The commercial general liability (CGL) is used to provide coverage for these exposures.
It is important to note that liquor liability coverage is excluded under the CGL form if a risk is in the business of serving alcoholic beverages. Many establishments in this category should therefore consider purchasing a separate liquor liability coverage form.
Restaurant kitchen equipment, inventory and dining room fixtures are common exposures for most eating and drinking places. Many of these establishments do not own the buildings they occupy but have long-term leases and have invested money in various improvements and betterments, including cooking equipment, dining room decorations and permanent fixtures.
There are major differences in the food service business and the very different exposures they present. There are many specific types of restaurants to cater to individual needs and tastes. There a several main commercial insurance classifications for food service.
Concessionaires: The most basic "eat on the run" type of restaurant is not classified as a restaurant at all but is referred to as a concessionaire. Class Code 11168: Concessionaires applies and the accompanying note states that all food and beverages must be sold through hawking or peddling. There can be no location to which customers walk up and purchase the food. This classification includes food sold at sporting events, exhibitions, and parks.
Caterers: Are very similar to restaurants with significant differences. The caterer prepares the meals at its own kitchen or commissary and then transports it to the locations where it will be served. Some final preparation may take place at the final location but the majority generally takes place at the caterer's location. The caterer's employees serve the meals and beverages and oversee the consumption of the food.
Restaurants: The way restaurants are categorized and classified uses the percentage of alcoholic beverage sales as the first criteria, followed by other features or operations.
Common to all of these categories is that entertainment-oriented venues such as nightclubs, cabarets, dance halls, discotheques, and comedy clubs must be separately classified and rated. This means that the sales that those entertainment activities generate must be broken out and rated separately from the sale or food and drink.
Minimum recommended small business insurance coverage: Business Personal Property, Business Income and Extra Expense, Spoilage, Equipment Breakdown, Employee Dishonesty, Money and Securities, Computers, Valuable Papers and Records, General Liability, Employee Benefits, Umbrella, Hired and Nonowned Auto & Workers Compensation.
Other commercial insurance policies to consider: Building, Earthquake, Flood, Leasehold Interest, Real Property Legal Liability, Accounts Receivables, Bailees Customers, Fine Arts, Cyber Liability, Employment-related Practices, Environmental Impairment, Liquor Liability, Business Automobile Liability and Physical Damage, Garagekeepers and Stop Gap Liability.
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