A devastating fire at a Southern California brewery highlights the importance of obtaining the appropriate craft brewery insurance coverages, Beall Brewery Insurance reports.
Destroyed in a fire July 27, a San Diego brewery turned to Kickstarter for the funds needed to rebuild — because the brewery didn’t have the right insurance in place to help pay for its recovery. “It appears that I only have liability insurance,” the owner posted on the brewery’s Facebook page. “When I first started I was pinching pennies and didn’t have much to lose. So, I am basically not covered to rebuild.”
When launching a craft brewery, staying on budget is a big concern—but insurance coverage is not the place to try to save a buck. Craft brewers need to focus on getting the most coverage for their investment.
Shopping for craft brewery insurance? Here are some questions to ask to ensure that your craft brewery will be secure in the face of disaster.
- Are you covered for sewer or drain backup?
- If one of your key suppliers was unable to make deliveries for an extended period of time, would you be covered for any resulting loss of business income or extra expense? Would you be able to afford to replace the materials and workmanship of the original building in the event of a loss?
- If you store raw materials or equipment in outbuildings, are those structures protected against damage?
- Are you protected against electronic vandalism and interruption of computer operations?
- Does your policy include coverage of foundation and pipe repairs?
- If your brewery is located in an older building, repairs or remodels may require you to re-configure the structure to comply with current local ordinances or laws. Does your policy cover these increased construction costs?
- If you transport raw materials to the brewery, or finished product to bars or restaurants, do you have in-transit coverage to protect that exposure?
- If your raw materials or finished product are contaminated or spoiled, is that covered in your policy?
- Does your policy cover repair or replacement of failed equipment? Does it offer risk prevention services to prevent breakdown?
- Does your policy provide for expenses incurred for recall of your finished product?
- In the event of a catastrophic event—an attempted act of violence, a contagious disease, or a felony—does your policy cover the public relations expenses that can help your reputation recover?
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.