The craft beer craze was in full bloom before the unfortunate effects of the pandemic. Before 2020, it looked as though a new brewery was opening every week!
Nowadays, many breweries have had to change their business model to keep afloat. But, at some point, we know the COVID-19 crisis will subside. This could be a unique time to start your own craft brewery.
Insurance for craft breweries is one of those things you need to check off your list before you begin making and selling your beverages. So, we’d like to run you through all the aspects you need to consider when choosing insurance for your brewery.
Let’s get to it!
Why Insurance Is Vital for Craft Breweries
Ensuring you have protection for your business is crucial. Sure, you could go years without ever having to file a claim, but the moment you need it, you’ll be glad you have it. You never know what stumbling block is lurking around the corner.
You should ask yourself what risks you are willing to take on? Also, do you have enough money to cover yourself if the problems you anticipate, and the ones you don’t, come to fruition?
If you don’t have a significant nest egg to bolster your business in tough times, you need to up your insurance amount. Without insurance, you could be one accident away from having to close shop.
Risk and Liability for Craft Breweries
You’re responsible for more than simply the beer you make as a brewery operator. It’d be wonderful to concentrate just on the brewing, but there are additional dangers to consider. The hazards for which you must prepare may vary depending on the sort of brewery you operate.
For the most part, you need to be concerned with aspects of your beer’s manufacturing. You’ll face specific dangers if you’re only brewing beer, but they’ll be lower than if you’re opening to the public. Contaminated batches, tank leaks and spills, and machine malfunctions are examples of these dangers.
When the public gets involved, you expose yourself to a lot greater risk. You have more chances for things to go wrong if you have a bar, tasting room, or restaurant. You may be held responsible if an intoxicated consumer causes an automobile accident after leaving your establishment. Even if a visitor is hurt on your property, there’s a high chance it’ll cost you money.
Of course, you want your place to be fun and relaxing for your customers. Yet, you need to find a balance so that excessive behaviors and accidents don’t happen on your premises.
Craft Brewery Insurance Costs
The most significant factor insurers consider to determine the cost of your insurance is the size of your brewery.
Microbreweries may only have to pay between 70-120 dollars a month, or a little more for brewery liability insurance. When contributing these amounts, you should expect to gain from one million dollars upward.
Macro breweries, on the other hand, have to fork out a lot more in monthly premiums. This is pretty understandable as there are many more aspects to cover and many more things that could go wrong.
Craft Brewery Coverage Types
We’ll now run through craft brewery insurance types you might want to consider for your new beer-making enterprise.
You may not need all of these insurance types for your specific type of business. But, it’s good to learn about the various ways you can get coverage for your business, as you could want to expand in the future.
Business Property Coverage
Business property coverage will cover your business in the same way that your homeowner’s insurance covers your home in the event of an emergency.
You need to consider unexpected events happening, such as a car smashing into your wall, fire, vandalism, or your roof collapsing. Property insurance will help you get your business back up and running as soon as possible. Maybe lightning hit your compressor to your glycol chiller causing you to lose temperature on your staple batch of IPA, or the brand new compressor to your walk-in abruptly shut off. Equipment breakdown coverage would help cover the loss and business income could help you recover your lost income from the lost product.
Restaurant Property Coverage
Is there a restaurant at your brewery? A restaurant may bring in just as much revenue as beer to your brewery.
It might be costly if your restaurant’s equipment fails. If there is a problem with your equipment, your restaurant property coverage will protect you.
Tank Collapse Coverage
You must ensure that your tanks are covered as they are the lifeblood of your business. You’ll have a major problem on your hands if one of your tanks implodes.
With the right tank coverage, you’ll have access to the funds you need to fix or replace it in a rapid time. Just think, it would be an absolute nightmare to deal with a collapsed tank alone.
Tank Leakage Coverage
Perhaps instead of collapsing, your tank will leak. Any lost beer is gone for good if there isn’t a tank leak coverage.
Leakage coverage also extends to any other storage container. So, you’ll have protection for any additional problems.
General Liability Coverage
General liability insurance can protect you from any of the dangers that come with running a business.
Your general liability coverage will assist pay for direct charges and any possible legal fees if your food or beverages make someone sick or if a guest stumbles while walking up the stairs. Under general responsibility, an insurance company might cover any commercial concerns relating to the product, advertising, libel, or slander.
Other Insurance Coverage to Consider
Here are some other forms of insurance you might want to consider for your craft brewery:
- Spoilage and contamination coverage.
- Liquor Liability coverage.
- Equipment breakdown coverage.
- Worker’s Compensation Insurance.
Worker’s compensation coverage should be a serious consideration. In the end, if you look after your staff, the more likely they will do their job well.
Insurance for Craft Breweries Explained
We hope you now have a much better idea about insurance for craft breweries. You should have the mindset that insurance is necessary if you want long-term success with your business. After all, no one can predict the risks and liabilities that could occur in the future.
At Central Carolina Insurance Agency, we provide a personal and professional service for our clients. We understand the brewing industry and will advise you on what insurance types you need.
So please feel free to contact us today and get a quote.