Brewery Insurance for Craft & Microbreweries

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Brewing has its fair share of risks. Ingredients and finished brews can spoil, tanks can get damaged, and freak accidents might happen then hurt employees and third parties. Insurance companies allow you to protect yourself through brewery insurance. 

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What is Brewery Insurance?

Brewery insurance is an insurance product that’s composed of several policies that cater to the risks common in brewing, such as tank leakage, spoilage of goods, equipment damage, and more. This comes in two types depending on what kind of brewer the policyholder is:

• Craft brewery insurance

• Microbrewery insurance

Craft Brewery Insurance 

Craft brewery insurance is a type of specialized coverage for brewers who:

• Brew no more than 2 million gallons of beer per year

• Brew ales, stouts, porters, and other types of European beers

• Follow set standards of beer production

Microbrewery Insurance

If you’re not eligible for craft brewery insurance programs, then go for microbrewery insurance. This option is great if you’re a:

• Brewer who produces 15,000 barrels of beer per year

• You sell 75% of the manufactured beers through distributors 

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:

• Discrimination

• Wrongful termination

• Sexual harassment

• Physical abuse

• Other acts that violate employee rights

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 brewery’s liability insurance doesn’t have funds anymore and can’t cover further claims

• Your brewery’s liability insurance lacks the funds to provide adequate coverage for claims 

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:

• Tank leaks as caused by operator error, accidents, and other uncontrollable occurrences

• Tank collapse

• Bursting of the tank

• Splitting of the tank

• Tank rupture

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 

Brewery Insurance Cost

The average brewery insurance cost is $93.33 per month or about $1,119.96 annually for a $1 million general liability insurance

It is important to note that different factors influence the cost of brewery insurance. For example, the size of your brewery business could influence the total insurance cost. If you are an established brewery business with many employees, you could spend more on insurance. The location of your brewery also impacts cost. This is why it is essential to consider these factors when buying insurance.

In connection, here’s a table showing the rates of the best brewery insurance companies:

Compare quotes to get the best coverage for your brewery at the most reasonable price. Click the “Get Quotes” button on this page to start.