This Get Organized Month, Beall Brewery Insurance would like to suggest you take some time to focus specially on your brewery’s insurance package.
We understand that this might not be on your list of top 10 favorite activities. And we know that our recommendation may puzzle you. After all, you selected the insurance you need to protect your business, right? So what’s the point of a review?
Well, to put it simply, things change.
Your brewery may have invested in new equipment or materials like barrels for aging beers. Changes in the neighborhood around you—construction projects, for instance—could expose you to greater risk of property damage. Maybe when you first chose your insurance coverages, you were more focused on cost than on providing your business with thorough protection.
Consider the Southern California brewery that launched with only liability insurance—no commercial property insurance at all. So when there was a fire at his brewery, he turned to crowdfunding to try to raise the money needed for repairs.
Brewery Insurance Review Pointers
The first thing you want to check for is coverage in the following areas:
- Spoilage and contamination protection for ingredients and finished product.
- Commercial property coverage to protect brewing equipment.
- Commercial general liability coverage to protect the business from liability claims.
- Liquor liability coverage to protect the brewery from liability if someone gets injured in an incident after drinking the brewery’s beer.
- Workers’ compensation for employees working in brewing, bottling, packaging, and transporting craft beer.
You will also want to check your coverage limits. For instance, standard spoilage and contamination coverage might total $25,000. But would that be enough to cover your losses if you have to dispose of (or recall) a batch of contaminated beer? Is the value of contaminated beer based on the selling price, so your profit is also protected?
Questions to Consider During Your Brewery Insurance Review
Ask yourself the following questions to ask to ensure that your craft brewery will be secure in the face of disaster.
- Do you have coverage for sewer or drain backup?
- If one of your suppliers couldn’t make deliveries, do you have coverage for any resulting extra expense?
- If you store raw materials or equipment in outbuildings, do those structures have coverage for damage?
- Does the brewery have coverage for electronic vandalism and interruption of computer operations?
- Does your policy include coverage of foundation and pipe repairs?
- 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 spoilage or contamination occurs to your raw materials or finished product, does your policy cover that?
- Does your policy cover repair or replacement of failed equipment, or risk prevention services to prevent breakdown?
- Does your policy provide for expenses incurred for recall of your finished product?
If you’re not sure of the answers to these questions—or the answer is no—make an appointment with your brewery insurance agent. Then you can thoroughly review your policy together.
A brewery insurance review may not be the most exciting task you take on this year—but it could be one of the most important. Invest a little time in reviewing your policy, and making any necessary changes to protect your business. It will pay big dividends.
For more than 25 years, Beall Financial and Insurance Services, Inc., has helped 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.