As of 2020, there were over 8,500 craft breweries in the U.S. If you own a brewery, your liability extends beyond the stouts, lagers, and ales you produce. Many other risks can lead to financially devastating liability claims. Read on to learn how to mitigate the risks associated with owning a brewery.
Manufacturing and Hospitality Risks
If your operation only focuses on brewing beer, you face unique risks, although on a smaller scale than if your establishment is open to the public. Most of your risks are related to production, for example, equipment breakdowns, contaminated batches, and tank spills and leaks. Conversely, if your establishment is open to the public, you're exposed to a wider range of risks. For instance, if an intoxicated customer is involved in an auto accident after leaving your establishment, you may be held liable. Additionally, it may cost you if a guest is injured while on your property.
How Much Will Brewery Insurance Cost?
Brewery insurance rates vary widely based on numerous factors, including:
- Property value
- Type and value of equipment
- Building's square footage
- Quantity of beer sold on your premises
- Type of activities hosted
Brewery Insurance Policies to Consider
- Business Property Coverage: Covers your buildings and other structures as well as their contents in the event of covered hazards such as weather events, fire damage, vandalism, and theft. You should include adequate coverage for your brewing machinery and equipment, beer stock, inventory, fixtures, furniture, computers, and other valuable on-site property. This policy should also include business interruption coverage.
- Tank Leakage Coverage: Covers the damage caused by leakage of in-process or completed beer from your containers. However, your main property policy will cover damages to your containers or any other property.
- Tank Collapse Coverage: Covers the expenses relating to a tank collapse.
- Restaurant Property Coverage: If you operate a brewpub or if your brewery is coupled with a restaurant, this coverage protects your restaurant equipment.
- Inland Marine Insurance: This policy covers your products while they are in transit, either to storage or distributors' sites.
- General Liability Insurance: Protects you against third-party property and bodily injury liability claims. If a customer slips and falls while on your premises or if your product makes a customer ill, your general liability insurance will pay for medical expenses and other direct costs as well as legal costs and any settlements or judgments. General liability can also cover claims relating to advertising liability, product liability, libel, and slander.
- Equipment Breakdown Coverage: This coverage pays for the expenses that come with equipment breakdown as well as any other damage caused by the broken equipment, including property damage and loss in revenue.
- Contamination and Spoilage Coverage: Covers the losses that result from spoiled products.
- Liquor Liability Coverage: Covers property damage or bodily injury liability claims emanating from negligent serving and selling of alcohol.
Are There Other Risks to Consider?
You may also need the following coverages to mitigate risks related to other aspects of your brewing business:
- Commercial Auto Insurance - Covers your business automobiles used for business purposes.
- Crime Coverage - Covers losses resulting from fraud, forgery, or theft.
- Workers' Compensation Insurance- Covers your workers' work-related illnesses and injuries.
- Cyber Liability Insurance - Covers any damage related to data breaches during cyber attacks.
- Product Recall Coverage - Covers costs related to damaged, recalled, or dangerous products.
These are some of the facts that you need to keep in mind while looking for brewery insurance that suits your precise needs. To get coverage that's ideal for your brewery, contact our experts at Humble & Davenport Insurance today.