Common Brewery Insurance Coverage
The number of breweries in the United States has increased drastically over the last decade. About 97% of the breweries are regional craft brewers, brewpubs, or microbreweries, which make up approximately 2,800 breweries in the United States. Numerous challenges come with opening and running a brewery hence the need to protect your investment against unexpected events. The insurance cost varies depending on the type and the size of the brewery. There are numerous exposures that breweries have and need to make sure they have the right insurance coverage.
Factors to consider while shopping for brewery insurance:
- Unexpected events are bound to happen.
- There are dangerous machinery and the equipment on site.
- The probability of guests damaging the equipment of the property.
- Instances where the brewery releases contaminated product unknowingly.
- Stored beer and beer in transit.
A brewery requires maximum insurance protection due to the risks involved in both manufacturing and hospitality operations of the industry. Some of the brewer’s insurance policies include:
1) Business Property Coverage
A commercial property insurance policy protects your building and its contents such as machinery, computers, and beer stock from damage. The coverage also provides protection against fire, theft, vandalism, and equipment breakdown.
2) General Liability Insurance
A GL insurance policy provides coverage for injuries to other people’s property and bodily harm caused to others due to the negligence of the brewery owner or other employees in the company. It also covers minor accidents like slips or falls.
3) Liquor Liability Insurance
This insurance plan protects the brewery against claims involving serving and sale of beer to the guests on or off-site. A brewery might be liable for damage to property or personal injury to the guest or another person if he was under the influence of alcohol.
4) Workers Compensation
The state requires a brewery to purchase a no-fault insurance for every employee at the company. Insurance companies determine the rate based upon every $100 of the worker’s income. Workers comp insurance coverage provides medical coverage for the employee as well as compensation in a case of an accident.
Other policies to consider are: purchasing include umbrella insurance, auto insurance, property in transit, and bonding coverage. Remember to vet the insurance agents on their knowledge of the brewery industry for proper services.