Your brewery’s biggest risks aren’t always what you’d expect. A cracked hose, a faulty yeast strain, or a small electrical surge can quickly lead to catastrophic financial losses. That’s where niche coverages, often overlooked by those unfamiliar with the industry, become your most valuable assets. Let’s explore three specialized insurance policies for breweries that every brewery should consider.

1. Contamination & Spoilage Insurance

Picture this: your new, highly anticipated double IPA is fermenting perfectly. But a sudden power outage trips a circuit, causing your glycol chiller to shut down for a few hours. By the time you discover the problem, the temperature in the tank has risen, and the entire 30-barrel batch—worth tens of thousands of dollars in ingredients, labor, and packaging—is ruined.

Standard commercial property insurance might cover the physical damage to your equipment from the power surge, but it won’t cover the lost product. This is where Contamination & Spoilage insurance is critical.

What it covers: This policy protects against the loss of your raw materials, in-process beer, and finished product due to a covered event, such as a power outage, refrigeration breakdown, or contamination. It accounts for the value of the lost inventory and can even cover the cost of disposing of the spoiled product. Without this coverage, that ruined batch is a total write-off, hitting your bottom line directly and potentially jeopardizing your cash flow.

2. Product Recall Insurance

You’ve just sent out your latest distribution run. Your flagship pilsner is on shelves across the state. A few days later, a customer posts a photo online of a can with a “gushing” issue—a sign of over-carbonation or, worse, a wild yeast contamination. The post goes viral, and it’s clear the problem isn’t isolated. You have to pull every can of that batch from the market.

While your General Liability insurance might cover bodily injury claims from an exploding can, it will not pay for the massive logistical and financial burden of the recall itself.

What it covers: Product Recall insurance is specifically designed to cover the expenses associated with a product recall. This includes the cost of:

• Notification: Sending out alerts to distributors, retailers, and the public.
• Retrieval & Disposal: The labor and transportation costs to pull the product from shelves and properly dispose of it.
• Replacement: The expense of brewing, packaging, and shipping a new, uncontaminated batch.
• Public Relations: The cost of hiring a PR firm to manage your brand’s reputation and regain consumer trust.

A product recall can be an existential threat to a brewery’s brand and finances. This specialized policy provides a safety net that allows you to act decisively and responsibly, protecting both your customers and your business.

3. Equipment Breakdown Insurance

Your brewery’s entire operation hinges on a complex web of machinery: the brewing kettles, pumps, heat exchangers, glycol chillers, and bottling line. A standard property policy covers damage from external forces like a fire or storm, but what happens if a compressor motor on your critical glycol chiller simply burns out? This type of mechanical failure is not covered by a basic policy.

What it covers: Equipment Breakdown insurance covers the costs to repair or replace your essential machinery due to a sudden and accidental mechanical or electrical breakdown. This goes beyond the normal wear and tear and includes issues like short circuits, power surges, or mechanical failures. Many policies also include business income coverage, which helps offset lost revenue during the time your equipment is down, ensuring you can still pay your bills while waiting for repairs.

The Right Recipe for Protection

These niche coverages are not a luxury; they are a necessary part of a robust risk management strategy. By partnering with a brewery insurance professional who understands the unique exposures of the brewing industry, you can create a customized policy that goes “beyond the basics” and provides the peace of mind to focus on what you do best: crafting exceptional beer.

For more than 30 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. With offices in California and Indiana, Beall Financial and Insurance Services serves clients nationwide.