Running a brewery involves a variety of risks at every level of business. While following best practices is always a good place to start, having the right coverage is crucial in protecting your business when calamity strikes.
These are 15 types of coverage for breweries, tap rooms, restaurants, delivery, production safety, quality control and distributors should consider:
- Property Insurance:
Coverage for Brewery Property: This coverage helps repair or replace these essential items, minimizing financial losses. It covers events like a fire damaging your brewing equipment or a flood affecting your physical assets.
Business Interruption Insurance: If your brewery has to temporarily shut down due to a covered event (e.g., fire, flood), this insurance helps replace lost income during the shutdown. It covers ongoing expenses like rent, utilities, and employee salaries, ensuring financial stability.
- General Liability Insurance:
Tap Room and Restaurant Liability: In the tap room or restaurant, there is a risk of accidents leading to bodily injury or property damage. This coverage protects against claims and legal expenses, offering financial support in the event of a lawsuit.
Product Liability Insurance: If a consumer claims that your beer caused illness or injury, this insurance provides coverage for legal defense costs and settlements, protecting your brand reputation and finances.
- Liquor Liability Insurance:
This coverage is crucial for breweries with tap rooms and restaurants. If a customer becomes intoxicated at your establishment and causes harm, liquor liability insurance covers legal costs and damages. Without it, your business may be held responsible for the actions of intoxicated patrons.
- Workers’ Compensation:
If a brewery employee gets injured on the job, workers’ compensation covers medical expenses, rehabilitation costs, and lost wages. This coverage not only supports your employees but also protects your business from potential lawsuits related to workplace injuries.
- Commercial Auto Insurance:
If your brewery engages in beer delivery, commercial auto insurance ensures that your vehicles are protected against accidents, theft, and other damages. This coverage is vital for maintaining the continuity of your distribution operations.
- Equipment Breakdown Insurance:
Brewing equipment is expensive, and breakdowns can halt production. This insurance covers the cost of repair or replacement, minimizing downtime and financial losses.
- Cyber Liability Insurance:
In the digital age, breweries store customer information electronically. If there’s a data breach or cyber-attack, this insurance helps cover the costs of notifying customers, legal fees, and potential financial losses.
- Employment Practices Liability Insurance (EPLI):
Protecting against claims related to employment practices, EPLI is crucial for breweries dealing with potential issues like discrimination or wrongful termination. Legal defense costs and settlements are covered under this policy.
- Umbrella Insurance:
Acts as an extra layer of protection. If a liability claim exceeds the limits of your primary policies, umbrella insurance kicks in to cover the remaining costs, preventing a significant financial burden on your brewery.
- Crime Insurance:
Covers losses resulting from various crimes, such as employee theft or fraud. This coverage safeguards your brewery’s assets and financial well-being.
- Quality Control and Product Recall Insurance:
In the event of a product recall due to quality issues, this insurance covers the expenses associated with the recall process, including communication, transportation, and disposal of the affected products.
- Distribution Liability Insurance:
If your brewery is involved in distribution, this coverage protects against liabilities related to the distribution process, including issues with labeling, packaging, or transportation.
- Environmental Liability Insurance:
Addresses potential environmental risks associated with brewery operations, such as accidental spills or contamination. This coverage helps cover the costs of cleanup and potential legal liabilities.
- Supply Chain Insurance:
Covers losses related to disruptions in your supply chain. For example, if a key supplier faces a disaster or goes out of business, this insurance helps ensure continuity in production by covering additional costs incurred to secure alternative sources.
- Cybersecurity Incidents:
If a brewery experiences a data breach or cyberattack, leading to the loss of sensitive customer information, they may file a claim under cyber liability insurance to cover the costs of investigation, notification, and potential legal actions.
These coverages collectively create a comprehensive risk management strategy for breweries, helping them navigate various challenges and uncertainties in the industry. It’s essential for brewery owners to work closely with experienced insurance professionals to tailor coverage based on their specific operations and risks. Regular reviews and updates to insurance policies are crucial as the business evolves and expands.
