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:
- What Is Brewery Insurance?
- How Much Does Brewery Insurance Cost?
- Why Do Breweries Need Insurance?
- What Type Of Insurance Do Breweries Need?
- What Does Brewery Insurance Cover & Pay For?
What Is Brewery Insurance?
Brewery insurance is a type of insurance policy that provides coverage for risks associated with the brewing industry. This can include coverage for liability, property damage, product liability, and equipment breakdowns, as well as other risks specific to the industry. The coverage helps to protect the financial stability of a brewery by mitigating the impact of unexpected events or losses.
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 consideration 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.
What Does Brewery Insurance Cover & Pay For?
Breweries, like any other business, can face legal liabilities and potential lawsuits for various reasons. Some common reasons breweries may be sued include:
Product Liability: Breweries can face lawsuits if their products, such as beer or other beverages, cause harm to consumers. For example, if a consumer claims to have suffered food poisoning or an allergic reaction due to a brewery's product, they may sue the brewery for damages.
Product liability insurance can help breweries cover the costs of legal defense, settlements, or judgments in such cases.
Intellectual Property Infringement: Breweries may be sued for intellectual property infringement, such as trademark or copyright violations. For instance, if a brewery's logo or brand name is too similar to another brewery's or if they use copyrighted material without proper authorization, they may face legal action.
Intellectual property insurance can help breweries cover the costs of defending against such lawsuits and paying damages if found liable.
Premises Liability: Breweries that operate taprooms or tasting rooms may face premises liability lawsuits if a customer suffers an injury while on their premises. For example, slip-and-fall accidents or other injuries due to unsafe conditions can result in legal claims.
General liability insurance can provide coverage for such lawsuits, including legal defense costs, settlements, or judgments.
Employment Practices Liability: Breweries may face lawsuits related to employment practices, such as wrongful termination, discrimination, or harassment claims from employees or job applicants. Employment practices liability insurance can help breweries cover the costs of legal defense and damages in such cases.
Liquor Liability: Breweries that sell alcoholic beverages may face liquor liability lawsuits if a customer becomes intoxicated and causes harm to others, such as in cases of drunk driving accidents.
Liquor liability insurance, also known as dram shop insurance, can provide coverage for legal defense costs, settlements, or judgments arising from such claims.
It's important to note that insurance policies and coverage can vary, and breweries should carefully review their insurance policies to understand the specific coverage and limits provided. Consulting with an insurance professional or attorney specializing in brewery insurance can be beneficial in ensuring adequate coverage for potential risks and liabilities.
Commercial Insurance And Business Industry Classification
- SIC CODE: 5813 Drinking Places (Alcoholic Beverages)
- NAICS CODE: 722410 Drinking Places (Alcoholic Beverages)
- Suggested Workers Compensation Code(s): 9084 Bar, Discotheque, Lounge, Nightclub or Tavern
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.
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
- Coffee Shop
- Concession Stand
- Farmers Market
- Grocery Store
- Ice Cream Shop
- Internet Cafe
- Liquor Liability
- Liquor Store
- Sandwich Shops
- Specialty Food And Restaurants
The food service industry is a vital part of the economy and plays a crucial role in providing food to individuals and businesses. However, it is also a high-risk industry that is prone to numerous potential liabilities and risks. That's why it's important for food service businesses to have insurance in place to protect themselves against financial losses and legal issues.
One of the main reasons the food service industry needs commercial insurance is to protect against liability claims. When running a food service business, there is a risk of someone getting sick or injured due to food poisoning or food allergies. Insurance can provide coverage for these types of claims, helping to cover the costs of legal fees and damages.
Another reason the food service industry needs insurance is to protect against property damage. This can include damage to the business's physical location, such as from a fire or natural disaster, or damage to equipment, such as kitchen appliances. Commercial insurance can help cover the costs of repairs or replacement, ensuring that the business can continue to operate smoothly.
Additionally, commercial insurance can provide coverage for losses due to unexpected events, such as theft or vandalism. This can be especially important for food service businesses, as food products and equipment can be expensive to replace.
The bar and liquor industry is highly susceptible to accidents and injuries. With the presence of alcohol, there is a higher risk of slip and fall accidents, fights, and other mishaps that could result in serious injuries to employees or patrons. Insurance can provide coverage for these types of incidents and help protect the business from financial liability.
In summary, business insurance is essential for the food service industry due to the numerous risks and liabilities that can arise. It can provide financial protection against potential losses and legal issues, helping businesses to operate safely and securely.
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.