Cheers to the right brewery insurance

By: General Insurance Services Last Updated: March 23, 2022

There are several essential and specialized insurance coverages that every brewery should be familiar with. Your insurance professional can help you with further details on pricing and availability, but the following should give you a solid overview for consideration.

Business Property Insurance

Also called commercial property insurance, this type of policy protects against losses to the physical structure and contents of your business in case of damage, theft or complete destruction. It covers parts of the building, as well as items such as inventory, furnishings, office equipment and even some outdoor structures.

If you rent the building, your landlord will carry insurance for the structure, but you’ll still need a policy for any on-site materials that you own or for which you carry financial responsibility.

When selecting coverage, you can choose either replacement cost value or actual cash value (ACV). The first option covers the full cost of an item’s replacement, while the second pays only the depreciated value of the item. Although an ACV policy pays less at the time of a claim, it usually charges a lower premium.

Of course, every property policy also comes with some exclusions – such as loss due to flooding, sewage backup or earthquakes – so be sure to understand these exclusions. Coverage for these perils can be added or obtained separately, so talk to your insurance professional about the costs and benefits. We will address some specialized coverages for brewery equipment further on.

Know that the equipment you take to festivals or elsewhere can also be protected, so talk about any plans you have to take product or equipment off-site.  

General Liability Coverage

This type of policy covers medical and legal costs related to bodily injury, distress or damage to personal property a visitor suffers while at your business. It also protects against claims of slander or advertising injury. Remember that you don’t need to be at fault for a guest to sue you, so this coverage is imperative.

You can expand your liability protection with an umbrella policy, so talk to your insurance professional if you are concerned your liability limits of coverage are too low.

Workers’ Compensation

Although coverage requirements differ by state, workers’ compensation insurance is typically the best way to assist injured employees and protect your company against financial catastrophe due to workplace injury.

Workers’ compensation insurance pays for lost wages, disability and medical care for employees who are injured, disabled or sickened on the job, regardless of who is at fault. There are also substantial death benefits in the case of a work site fatality. This coverage is provided in exchange for an employee’s contractual agreement not to sue the employer following a covered incident.

Specialized Brewery Insurance Coverage

Your equipment is your livelihood. Specialized coverages to discuss with your insurance professional include:

Complete Coverage

Let’s consider a scenario: One of your employees pulls ingredients from a refrigerator that, unbeknownst to you, has not been maintaining proper temperature. Those ingredients are used in a batch of beer. This tainted beer is bottled and given to customers, causing several to become ill.

Your insurance should always be coupled with the best risk management practices you can employ. By working hard to prevent errors, accidents and damage, your brewery will be more attractive to the best insurers, and you may even experience advantageous premium rates. Connect with us about both loss control and insurance coverage to achieve the best protection.