As the year winds down and craft brewery owners look ahead to new brews, bigger equipment, increased square footage, and expanded distribution in 2014, it’s a great time to review brewery insurance coverage and make sure that you’re covered.
Richard Beall, principal of Beall Financial and Insurance Services, points out that craft breweries have very specific insurance needs—and craft brewery insurance coverage should be carefully considered as a brewery grows. Focus on these areas:
Business Personal Property
Review your brewery’s inventory, equipment, and raw materials. Have your numbers changed? You may need to adjust your business personal property limits to reflect new replacement values. Failure to do so could leave the brewery exposed to unnecessary financial risk.
Is your brewery on the grow? New staff, greater amounts of beer brewed, and a brewery expansion can increase your sales and your operating expenses. Business interruption coverage limits might need to be raised to accommodate your bigger business.
Liability limits should be reviewed in order to make sure the brewery is adequately protected. A good insurance professional knows how to look at a brewery’s business structure, assets, and legal and business requirements to assist a brewery with determining adequate limits.
Protect yourself from a “surprise” increase in your premium. Remember, growth brings additional revenue and payroll, and that could mean additional premiums will be due.
“Business growth is always exciting—but with greater size can come greater risk, and brewery insurance coverages will most likely need to be modified,” Beall says simply. “Craft brewers planning to expand their business need to meet with their insurance professional and review important coverage issues.”
For more than 25 years, Beall Financial and Insurance Services, Inc., has been helping corporations and individuals protect their most important assets. The agency’s client base covers a spectrum of niche businesses, such as craft breweries, that require specialized insurance packages and knowledge. Beall Financial and Insurance Services, Inc., offers the Craft Beer Advantage, a specialty craft beer insurance program tailored for craft breweries, microbreweries, brew pubs, and contract breweries. With California offices in Redlands and Newport Beach, Beall Financial and Insurance Services serves clients nationwide.