February is a fickle month for craft breweries. One week you’re dealing with a deep freeze, and the next, a sudden thaw sends humidity levels spiking. While your patrons are cozying up to a stout in the taproom, your brewing equipment is fighting a silent battle against the elements.

It’s not unusual to see a spike in claims this time of year—not just from “acts of God,” but from mechanical failures that could have been avoided. Here is why Equipment Breakdown Coverage is a key “ingredient” in your February operations.

The Vulnerability of the Cold

When temperatures drop, your glycol cooling system and outdoor grain silos are under immense stress. Cold air can cause control lines to become brittle and air compressors to struggle as lubricants thicken. If a chiller fails on a Friday night, you aren’t just looking at a repair bill; you’re looking at the potential loss of every gallon of “beer-in-process” currently fermenting.

The Gap in Standard Property Insurance

A common misconception among brewery owners is that a standard Commercial Property policy covers their tanks and canning lines. Here is the reality: Property insurance typically covers external causes like fire, theft, or wind. It often excludes internal causes like:

• Mechanical Breakdown: A motor seizing up in your mash tun.
• Electrical Arcing: A power surge frying the control panel of your automated canning line.
• Pressure Vessel Failure: A boiler or pressurized tank failing due to internal stress.

Why Equipment Breakdown Coverage is Different

Unlike standard property insurance, an Equipment Breakdown endorsement is designed to get you back to brewing fast. It doesn’t just pay for the broken part; it can also cover:

• Spoilage: The value of the beer lost because the temperature wasn’t maintained.
• Business Income: The revenue you lost while the taproom was closed or distribution was halted.
• Expediting Expenses: The extra cost to rush-ship a replacement part from overseas.

February Maintenance Tip

Take ten minutes this week to inspect your seals and insulation. A small investment in winterizing your pipes can prevent a catastrophic “meltdown” that halts your production right as you prepare for the busy spring season.

Got questions? Just reach out: we can help!

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.