The Basics of Craft Brewery Insurance: What You Need to Know

Demand for craft beer and breweries has recently grown among consumers. While many businesses have shut down due to economic uncertainties, breweries generally do just fine. If you are thinking about launching a new brewery, here are a few important things you need to know about Craft Brewery Insurance.

Why Do You Need Brewery Insurance?

Every type of insurance has complexities and nuances, and brewery and distillery insurance policies are no different. It's crucial to assess the risks of opening an establishment to brew and serve beer since any venue that sells alcohol to the public faces certain dangers.

Potential risks and liabilities of opening a craft brewery

If all your company does is brew beer, it won't face as many risks as establishments serving alcohol to patrons. Equipment issues and contamination are two fundamental risks that can slow down or even shut down your business. When you invite the public to your establishment, risks increase because customers under the influence of alcohol can potentially harm others or cause property damage.

All it takes is a person who has had too many drinks to start an altercation with another patron, leading to physical violence. A drunk can lose control and break glass, creating a dangerous situation. Or if a drunk tries to drive home and gets in an accident, victims can actually sue your establishment. As a brewery owner, you are responsible for whom you serve beer. Even a bartender can face trouble in court for serving beer to someone who is intoxicated.

How Much Does Brewery Insurance Cost?

Your brewery insurance cost will depend on various factors such as location, sales revenue, the size of the operation, and how you run it. The typical cost of a small brewery insurance plan ranges from $150 to $200 per month for a standard policy that covers $1,000,000/$2,000,000 for liability coverage.

Types of Coverage to Consider for Your Brewery

• General Liability - As the most common type of business insurance, you need this coverage to pay for various legal costs.
• Commercial Property - This coverage protects your investment in a building that houses your business and covers losses from natural disasters, theft, and vandalism.
• Workers' Compensation - Every business that hires employees needs workers' comp based on state requirements.
• Commercial Auto - If you own a commercial vehicle, you must carry commercial auto coverage based on state requirements.
• Tank Collapse - If a tank implodes, it can cause serious damage, so you need coverage to be on the safe side.
• Tank Leakage - You need coverage for your tanks that store beer in case they leak and cause damage.
• Restaurant Property - If your brewery has a restaurant, you need extra coverage for restaurant assets.
• Equipment Breakdown - When equipment malfunctions or ceases to function, it can cause revenue loss. This coverage provides reimbursement for such unfortunate incidents.
• Contamination and Spoilage - Any perishable food or beverage products can get contaminated or spoiled, causing health concerns.
• Liquor Liability - All businesses that serve alcohol need this coverage to pay for injuries or property damage related to alcohol consumption.

Get the Right Brewery Insurance Now!

Opening a brewery can spark excitement in a community, but you must carry the right brewery and distillery insurance policies. Contact our experts at Tompkins Insurance Agencies to learn more about proper financial protection for your establishment.