All Brewery Insurance Is Not Created Equal

Any craft brewery owner/ operator knows that craft brewery insurance is necessary to protect the equipment, to protect the workers, and to protect the business. But Beall Brewery Insurance points out that basic property, workers comp, and liability insurance may not be enough.

“It’s important for a craft brewery to work with an insurance agent who knows the business, who has experience working with clients who have claims, and who can recommend the appropriate coverages—and coverage amounts—to provide real protection to the business,” says Beall Brewery Insurance principal Richard Beall.

Customized Brewery Insurance Is Key

One Beall Brewery Insurance client recently filed an equipment breakdown claim. The heating element in a new piece of equipment malfunctioned—but that wasn’t the only problem. That malfunction led to corrosion which, in turn, contaminated a batch of beer.

Equipment breakdown coverage would have paid to replace the heating element (but was not necessary in this case, since the equipment was still covered by the manufacturer’s warranty). But what could the brewery owner do about that spoiled batch of beer?

That’s where his coverage for spoilage and contamination came into play. But the brewery insurance policy didn’t merely cover the cost of the ingredients that went into that contaminated batch.

When crafting the brewery’s customized insurance plan, Beall made sure that in the case of a spoilage or contamination claim, the valuation of contaminated beer would be based on selling price.

“They lost the product they were planning to sell, due to the contamination—but because of that valuation, they still got the profit they would have earned on that beer,” says Beall.

Though contamination coverage and selling price valuation are not included in standard industry forms, Beall recommended including both in the brewery’s insurance package because he has seen firsthand how valuable those coverages are to his craft brewery clients.

“We also work with a company that addresses claims quickly,” says Beall. “They get an adjuster out ASAP so the spoiled beer isn’t just sitting there. That way our clients can dump that beer, start brewing a new batch, and get their claims check right away.”

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. With California offices in Redlands and Newport Beach, Beall Financial and Insurance Services serves clients nationwide.