Brewery Insurance Policy Information
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 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.
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.
Below are some answers to commonly asked brewery insurance questions:
- How Much Does Brewery Insurance Cost?
- Why Do Breweries Need Insurance?
- What Type Of Insurance Do Breweries Need?
How Much Does Brewery Insurance Cost?
The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small breweries businesses ranges from $77 to $109 per month based on location, size, payroll, sales and experience.
Why Do Breweries Need Insurance?
There are many risks involved in the production of beer. For you to get the best insurance for your 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 brewery insurance coverage. In any business, the things that happen that you didn't prepare for can bankrupt your business without the proper coverage.
What Type Of Insurance Do Breweries Need?
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 brewery:
Business property coverage: This type of 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.
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.
Commercial Insurance And Business Industry Classification
- SIC CODE: 5813 Drinking Places (Alcoholic Beverages)
- NAICS CODE: 722410 Drinking Places (Alcoholic Beverages)
- Suggested ISO General Liability Code(s): 16920, 16921, 16930, 16931, 16940, 16941
- Suggested Workers Compensation Code(s): 9084
5813: Drinking Places (Alcoholic Beverages)
Division G: Retail Trade | Major Group 58: Eating And Drinking Places | Industry Group 581: Eating And Drinking Places
5813 Drinking Places (Alcoholic Beverages): Establishments primarily engaged in the retail sale of alcoholic drinks, such as beer, ale, wine, and liquor, for consumption on the premises. The sale of food frequently accounts for a substantial portion of the receipts of these establishments.
- Bars (alcoholic beverage drinking places)
- Beer gardens (drinking places)
- Beer parlors (tap rooms)
- Beer taverns
- Beer, wine, and liquors: sale for on-premise consumption
- Bottle clubs (drinking places)
- Cocktail lounges
- Discotheques, alcoholic beverage
- Drinking places, alcoholic beverages
- Night clubs
- Saloons (drinking places)
- Tap rooms (drinking places)
- Taverns (drinking places)
- Wine bars
Brewery Insurance - The Bottom Line
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.
Types Of Small Business Insurance - Requirements & Regulations
Perhaps you have the next great idea for a product or service that you know will appeal to your local area. If you've got a business, you've got risks. Unexpected events and lawsuits can wipe out a business quickly, wasting all the time and money you've invested.
Operating a business is challenging enough without having to worry about suffering a significant financial loss due to unforeseen and unplanned circumstances. Small business insurance can protect your company from some of the more common losses experienced by business owners, such as property damage, business interruption, theft, liability, and employee injury.
Purchasing the appropriate commercial insurance coverage can make the difference between going out of business after a loss or recovering with minimal business interruption and financial impairment to your company's operations.
Insurance is so important to proper business function that both federal governments and state governments require companies to carry certain types. Thus, being properly insured also helps you protect your company by protecting it from government fines and penalties.
Small Business Insurance Information
In the business world, there are many risks faced by company's every day. The best way that business owners can protect themselves from these perils is by carrying the right insurance coverage.
The The National Association of Insurance Commissioners (NAIC) is the U.S. standard-setting and regulatory support organization. Through the NAIC, state insurance regulators establish standards and best practices, conduct peer review, and coordinate their regulatory oversight.
Commercial insurance is particularly important for small business owners, as they stand to lose a lot more. Should a situation arise - a lawsuit, property damage, theft, etc. - small business owners could end up facing serious financial turmoil.
According to the SBA, having the right insurance plan in place can help you avoid major pitfalls. Your business insurance should offer coverage for all of your assets. It should also include liability and casual coverage.
Types Of Small Business Insurance
Choosing the right type of coverage is absolutely vital. You've got plenty of options. Some you'll need. Some you won't. You should know what's available. Once you look over your options you'll need to conduct a thorough risk assessment. As you evaluate each type of insurance, ask yourself:
- What type of business am I running?
- What are common risks associated with this industry?
- Does this type of insurance cover a situation that could feasibly arise during the normal course of doing business?
- Does my state require me to carry this type of insurance?
- Does my lender or do any of my investors require me to carry this type of policy?
A licensed insurance agent or broker in your state can help you determine what kinds of coverages are prudent for your business types. If you find one licensed to sell multiple policies from multiple companies (independent agents) that person can often help you get the best insurance rates, too. Following is some information on some of the most common small business insurance policies:
|Business Insurance Policy Type||What Is Covered?|
|General Liability Insurance||What is covered under commercial general liability insurance? It steps in to pay claims when you lose a lawsuit with an injured customer, employee, or vendor. The injury could be physical, or it could be a financial loss based on advertising practices.|
|Workers Compensation Insurance||What is covered under workers compensation insurance? This type of insurance protects a business and its owner(s) from claims by employees who suffer a work-related injury, illness or disease. Workers comp typically provides the injured employee with benefits to cover medical expenses, a portion of his/her lost wages, rehabilitation costs if applicable, and permanent partial or permanent total disability.|
|Product Liability Insurance||What is covered under product liability insurance? I pays an injured party's settlement or lawsuit claim arising from a defective product. These are usually caused by design defects, manufacturing defects, or a failure to provide adequate warning or instructions as to how to safely use the product.|
|Commercial Property Insurance||What is covered under business property insurance? General liability policies don't cover damages to your business property. That's what commercial property insurance is for. It protects all of the physical parts of your business: your building, your inventory, and your equipment, giving you the funds you need to replace them in the event of a disaster. If you work from home, you might consider a Home Based Business Insurance policy instead.|
|Business Owners Policy (BOP)||What is covered under a business owners policy (BOP)? This is a policy designed for small, low-risk businesses. It simplifies the basic insurance purchase process by combining general liability policies with business income and commercial property insurance.|
|Commercial Auto Insurance||What is covered under business auto insurance? This type of insurance covers automobiles being used for business purposes. This could include a fleet of business-only vehicles or a single company car. In some cases it might cover your car or your employee's car while they're being used for business. These policies have much higher limits, ensuring you can cover your costs if one of these vehicles gets into an accident.|
|Commercial Umbrella Policies||What is covered under commercial umbrella insurance? This type of policy is a sort of "gap" insurance. It covers your liability in the event that a court verdict or settlement exceeds your general liability policy limits.|
|Liquor Liability Insurance||What is covered under liquor liability insurance? It covers bodily injury or property damage caused by an intoxicated person who was served liquor by the policy holder.|
|Professional Liability (Errors & Omissions)||What is covered under professional liability insurance? This type of business insurance is also known as malpractice oe E&O. It covers the damages that can arise from major mistakes, especially in high-stakes professions where mistakes can be devastating.|
|Surety Bond||What is covered under surety bonds? Bonding is a contract where one party, the SURETY (who assures the obligee that the principal can perform the task), guarantees the performance of certain obligations of a second party, the PRINCIPAL (the contractor or business who will perform the contractual obligation), to a third party, the OBLIGEE (the project owner who is the recipient of an obligation).|
Who Needs General Liability Insurance? - Virtually every business. A single lawsuit or settlement could bankrupt your business five times over. You might also need this policy to win business. Many companies and government agencies won't do business with your company until you can produce proof that you've obtained one of these policies.
Business Insurance Required by Law
If you have any employees most states will require you to carry worker's compensation and unemployment insurance. Some states require you to insure yourself even if you are the only employee working in the business.
Your insurance agent can help you check applicable state laws so you can bring your business into compliance.
Other Types Of Small Business Insurance
There are dozens of other, more specialized forms of small business insurance capable of covering specific problems and risks. These forms of insurance include:
- Business Interruption Insurance
- Commercial Flood Insurance
- Contractor's Insurance
- Cyber Liability
- Data Breach
- Directors and Officers
- Employment Practices Liability
- Environmental or Pollution Liability
- Management Liability
- Sexual Misconduct Liability
Whether you need any or all of these policies will depend on the results of your risk assessment. For example, you probably don't need an environmental or pollution policy if you're running an IT company out of a leased office, but you would need data breach and cyber liability policies to fully protect your business.
Also learn about small business insurance requirements for general liability, business property, commercial auto & workers compensation including small business commercial insurance costs. Call us (855) 767-7828.
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.