Different Kinds of Brewery Insurance Policies
Craft and microbrewery insurance programs allow you to avail any of these policies as a stand-alone protection or bundled coverage:
General liability insurance
Pollution liability insurance
Liquor liability insurance
Commercial auto insurance
Excess liability insurance
Employment practices liability insurance
Equipment breakdown insurance
Commercial property insurance
Product liability insurance
Spoilage and contamination insurance
Brewery General Liability Insurance
General liability insurance for microbreweries and craft breweries covers claims for bodily injuries or property damage. Use this insurance when:
A sanitation inspector gets burned by equipment or experiences a slip and fall accident while checking the premises of your brewing facility
Employee negligence or equipment leakage resulted in the accidental release of harmful chemicals. As a result, people near and on the premises of your brewery got sick
The brewing keg exploded as an independent contractor was about to clean it. Because of this, the contractor demands you indemnify his injuries and property damage
When your business is liable for the bodily injury or property damage of clients, visitors, and other third parties, general liability insurance provides the money you can use to cover these:
Medical Treatment
General liability insurance provides $5,000-$15,000 medical treatment coverage if the claimant sustained bodily injuries
Property Damage Reimbursement
You can use general liability insurance to reimburse the claimant’s losses if his or her property got damaged due to an accident in your brewery.
Settlements
You can use the funds of general liability insurance to provide compensation and settle things before the claimant decides to sue.
Defense Costs
If the claimant refuses to settle and files a lawsuit, your brewery can use general liability insurance to pay for attorney fees, court filing fees, investigation fees, and other legal defense expenses.
Court Judgments
If the case goes sideways, your brewery can use general liability insurance to cover the amount demanded by the court as payment for the claimant.
Additional Coverage You Get From General Liability Insurance
Insurance companies underwrite the general liability insurance for breweries broadly. And so, you enjoy these additional coverages from the policy.
Advertising Injury Coverage
The advertising injury coverage of general liability insurance covers settlements, defense costs, and court judgments if a claim is filed against your brewery for slander, libel, and copyright infringement.
Rented Premises Liability Coverage
If your brewery is renting and the space is damaged by fire, rented premises liability coverage will indemnify the losses of the landlord.
Hired/Non-Owned Auto Liability Coverage
Non-owned/hired auto liability coverage will take care of medical treatment expenses, property damage, and lawsuits if:
A vehicle your brewery hired to deliver goods causes an accident
A vehicle you borrowed from a friend, colleague, or another business causes an accident
An employee is using his or her own automobile to run an errand for your brewery and causes an accident
How Much Insurance Money Can You Get From General Liability Insurance?
General liability insurance for breweries has a $1 million-$4 million per occurrence limit. The aggregate limit is set at $2 million-$5 million.
Liquor Liability Insurance for Breweries
Purchase liquor liability insurance if your brewery has a bar, kiosk, or retail store where customers can buy the beverages you made. Use this when:
A customer sustains property damage or bodily injuries after getting drunk then blames your brewery for overserving alcohol
A drunk customer causes an accident or commotion that results in injuries or property damage for those who got involved. The victims then hold you liable for this
In connection, these are the costs that liquor liability insurance for breweries covers:
Medical treatment of the claimant
Refunds for the damaged properties of the claimant
Settlements
Defense costs such as attorney fees, court filing fees, investigation fees, and more
Court judgments
How Much Coverage Does Liquor Liability Insurance for Breweries Provide?
Liquor liability insurance for breweries provides $300,000, $1 million, or $2 million coverage for each claim.
Pollution Liability Insurance for Breweries
Pollution liability insurance is another important business insurance for breweries. This allows you to sort things out without incurring losses if:
Chemicals are accidentally spilled on the premises of your brewery, resulting in injuries and breathing problems for people nearby
Your brewery was hauling waste materials. The operator committed a mistake. The waste materials were sent to nearby properties, causing losses and killing local wildlife
Your brewery is releasing harmful fumes due to unattended equipment leakage. Those who live nearby suffered from discomfort and illnesses. Someone filed a claim because of this
So what particular costs does pollution liability insurance cover? This policy helps you take care of expenses for:
Medical treatments of the claimants
Refunding the damaged properties of the claimants
Pollution management and containment
Reversing the effects of the pollution caused by your brewery
How Much Coverage Can You Get From Pollution Liability Insurance?
Pollution liability insurance for breweries has a $50 million-$75 million per occurrence and aggregate limit. Note that sub-limits might apply. And so, it’s important to read the fine print of the policy.
Brewery Employment Practices Liability Insurance
Running a brewery smoothly is hard without employees. We suspect that you employ at least 5-10 people as a microbrewer or craft brewer.
Thing is, managing employees can have its own share of issues. And so, consider getting employment practices liability insurance (EPLI) that covers settlements, defense costs, and court judgments when an employee holds your business liable for:
How Much Coverage Does Employment Practices Liability Insurance Provide?
Employment practices liability insurance provides $100,000-$1 million coverage for each covered peril. We recommend you purchase a $500,000 EPLI coverage for your brewery business.
Product Liability Insurance for Breweries
Product liability insurance covers defense costs, medical treatments, and settlements if a customer files a claim because there are issues with the drinks from your brewery. Here are some situations where you’ll find this insurance useful:
A customer files a claim because the beer of your brewery caused a foodborne illness or disease
You were held liable for losses because your brewery incorrectly packed or labeled its products
You delivered a contaminated batch of beer to a client. And so, the client decided to file a claim to get compensation
How Much Coverage Does The Product Liability Insurance for Breweries Give?
Product liability insurance for breweries gives $1 million-$2 million coverage for each claim. But note that you can find insurance companies offering as little as $100,000-$500,000 coverage through the policy.
Excess Liability Insurance for Breweries
Excess liability insurance is another useful coverage for your brewery. But note that this doesn’t protect you from anything. Instead, it acts as a backup in case:
Your purchase this policy in $1 million increments. Excess liability insurance for breweries provides $1 million-$25 million coverage.
Commercial Property Insurance for Breweries
Commercial property insurance protects the tangible assets of your brewery in case something bad happens.
This insurance provides reimbursement if the brewing facility you own, lease, or rent is damaged or destroyed by:
Fire
Theft
Vandalism
Civil commotion
Riot
Malicious mischief
Sinkhole collapse
Volcanic action
Sprinkler leakage
Impact
Aircraft
Winds
Snow
Hail
Rain
Explosion
Note that the coverage of commercial property insurance also applies on valuables inside or on the exterior of the brewing facility such as:
Fermentation buckets
Racking cane
Malt mill
Mash turn
Filtration machine
Heat exchanger
Beer fermenter
Hydrometer
Furniture
Signage
Cash
Important documents
By the way, commercial property insurance doesn’t cover losses if these perils cause the damage or loss of your brewery’s property:
War
Floods
Mudslides
Landslides
Earthquakes
Normal wear and tear
How Much Commercial Property Insurance Does Your Brewery Need?
The amount of commercial property insurance needed is equal to the value of your brewery’s property.
For example, if your brewing facility costs $150,000, then you must get commercial property insurance offering $150,000 coverage. Note that the commercial property insurance for most breweries has a $15,000-$1 million limit.
Tank Collapse And Leakage Insurance for Breweries
One of the costliest investments in your brewery is the tanks. If something happens to the tanks, then commercial property insurance might not provide coverage. And so, consider getting tank collapse and leakage insurance.
Tank collapse and leakage insurance will cover replacement or repair expenses if the tanks of your brewery become damaged or destroyed. Of course, the contents will be wasted if something happens to the tank. And so, the policy will also recoup your financial losses.
These are the common perils covered by tank collapse and leakage insurance:
Spoilage And Contamination Insurance for Breweries
Don’t forget to purchase spoilage and contamination insurance for breweries. It will be very disastrous if you don’t have a countermeasure if ever the beers and raw ingredients spoil or get contaminated. Spoilage and contamination insurance will reimburse losses if spoilage or contamination is caused by:
Equipment breakdown
Prolonged power outage
Employee negligence
Mechanical breakdown
Equipment Breakdown Insurance for Breweries
Malt mills, mash turns, filtration machines, and other brewing equipment will break down. Buy equipment breakdown insurance so that you don’t pay extra expenses through your brewery’s financial reserves.
Equipment breakdown insurance will cover repair or replacement expenses if brewing equipment becomes damaged or lost due to:
Theft
Operator error
Mechanical breakdown
Impact
Electrical surge
Electrical shorts
Commercial Auto Insurance for Breweries
Commercial auto insurance is useful if your brewery owns and uses a pickup truck, flatbed truck, cargo van, or any other type of vehicle to deliver finished products to distributors.
This policy consists of numerous coverages that protect you against particular perils associated with utilizing a commercial vehicle. Common coverages in commercial auto insurance for breweries are:
Auto Liability Coverage
If the commercial vehicle of your brewery causes an accident, auto liability coverage will cover the medical treatment of the victims. This will also provide indemnification for property damage. Last but not least, auto liability coverage will take care of settlements, defense costs, and court judgments if the victims decide to sue.
Physical Damage Coverage
Physical damage coverage covers expenses if your brewery’s commercial vehicle sustains damage. Insurance companies offer this in two forms:
Collision coverage-Takes care of expenses if your brewery’s vehicle sustains damage after crashing into another vehicle or an object
Comprehensive coverage-Accounts for costs if your brewery’s commercial vehicle sustains damage due to fire, theft, vandalism, and other covered perils
Uninsured/Underinsured Motorist Coverage
Underinsured/uninsured motorist coverage will cover your medical treatment and refund losses if your brewery’s commercial vehicle got involved in an accident caused by a driver who isn’t insured or doesn’t have enough coverage.
Brewery Workers Compensation Insurance
As a brewery business owner, you must ensure that your employees, even if not numerous, get the necessary help whenever they need it. And so, see to it that you have worker's compensation insurance.
Brewery accidents come in different forms, such as amputations, electrocutions, chemical exposure, and carbon monoxide poisoning. When workers sustain severe injuries or illnesses that permanently affect their lives, they will sue if you don’t provide help. A court could order you to pay hefty compensation.
Workers' compensation insurance allows you to help injured or sick employees without spending money and avoid a costly legal fiasco. The following are what this insurance pays on your behalf:
Medical Treatment
Your employee will need immediate medical treatment/procedure upon experiencing amputation, electrocution, chemical poisoning, or other injuries and illnesses while working. Workers' compensation insurance will provide the money you can use to cover surgeries, therapies, and other required medical treatments/procedures.
Hospitalization
Workers' compensation insurance will help in case your brewery’s employee needs to stay in the hospital. It will cover hospital bills no matter how costly and regardless if your employee needs to be hospitalized for weeks, days, or months.
Medication
Your brewery’s employee might need to take medications to fully recover from a work-related injury or disease. This too is covered by workers' compensation insurance. This insurance will give the money your employee can use to buy medicines.
Rehabilitation
Injuries or illnesses an employee sustains because of working in your brewery can be very severe and need rehabilitative care. Workers' compensation insurance covers this. In practice, the insurance will cover therapist fees, rehabilitation equipment, and other associated expenses.
Lost Wages
You have to cover lost wages if an employee’s work-related injury or illness makes coming to work impossible. Workers' compensation insurance assumes this responsibility on your behalf by providing a weekly allowance.
The weekly allowance your employee receives will be equal to two-thirds or 67% of the average weekly wage. For example, if your injured or sick employee is a quality inspector making $2,500 per week, the weekly allowance from workers' compensation insurance will be $1,675.
Death Benefits
Workers' compensation insurance provides death benefits if your brewery business’s employee dies from a work-related injury or sickness. To be specific, the insurance will pay for funeral expenses and provide financial aid to dependents
