The Right Insurance Coverage for Your Brewery

Beer spoilage and contamination are among the top three craft brewery losses based on severity, Beall Brewery Insurance reports. But vigilance on the part of the brewery staff, combined with appropriate insurance coverages, can go a long way toward protecting the financial well-being—and the reputation—of a brewery.

When one Beall Brewery Insurance client discovered that a double batch of one of the brewery’s most popular—and most widely distributed—craft beers had been contaminated by wild yeast, brewery owners immediately contacted Beall Brewery Insurance.

Beall Brewery Insurance principal Richard Beall personally worked on the claim, contacting the insurance company and ensuring that the claim was expedited.

“Contaminated beer is the last thing a brewery wants–but thanks to having the right insurance coverage for its exposures, this situation worked out very well for our client,” Beall notes.

When Beall created the brewery’s customized insurance plan, he made sure that it included coverage not just for the cost of ingredients that made up the contaminated batch of beer—but that the valuation of contaminated beer would be based on selling price, so it would include the brewery’s profit. Contamination coverage and selling price valuation are not included in standard industry forms, but Beall recommended including both in the brewery’s insurance package—and also recommended that the brewery increase coverage to $100,000 to meet its exposure.

“When I told our client that he had that coverage, he said he could sleep at night,” Beall recalls.

“Our client received a check for six figures less than two weeks after filing his claim. That money enabled the brewery to continue production—and immediately to work on replacing the beer that had been contaminated so the brewery could fulfill customer orders.”

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.