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Why Every Brewery Needs Specialized Insurance Coverage

Jan 08, 2025

Brewery Insurance

Why Every Brewery Needs Specialized Insurance Coverage

Operating a brewery comes with risks, many of which aren't covered by standard business insurance policies. From production to distribution and retail, breweries face unique challenges that require specialized protection.

Brewery insurance provides tailored coverage to help mitigate the above mentioned risks and safeguard your business.

Here are some key reasons why every brewery needs specialized insurance coverage, and the guidance of an agency like Tompkins with experience in this complex industry.

  • Property Damage and Equipment Breakdown

Breweries rely on expensive equipment like brewing tanks, bottling lines, and refrigeration systems. Any damage to these vital components can halt production and result in significant financial losses. Breweries are also at risk for property damage from fire, water, or theft.

How Brewery Insurance Helps:

Brewery insurance covers property damage, including brewing equipment and facilities. This coverage helps you manage repairs or replacement costs, ensuring you can resume operations quickly and without financial strain.

  • Product Liability

Product liability is a critical concern for breweries. If a batch of beer is contaminated or causes harm to consumers, the brewery could be held responsible. These claims can result in lawsuits, product recalls, and reputational damage.

How Brewery Insurance Helps:

Brewery insurance often includes product liability coverage, which helps protect against claims related to product defects, contamination, or injury caused by your products. This coverage helps you cover the cost of legal defense and any recall expenses, reducing the financial impact of such claims.

  • Liquor Liability

If your brewery operates a taproom or sells alcohol directly to consumers, liquor liability becomes an essential consideration. Serving alcohol means taking on the risk that intoxicated customers may cause accidents or harm themselves or others.

How Brewery Insurance Helps:

Liquor liability coverage helps protect your brewery from claims arising due to alcohol-related incidents. This includes accidents or injuries caused by intoxicated customers, which could otherwise result in costly legal fees and settlements.

  • Workers' Compensation

Breweries involve physical labor, often requiring employees to work with heavy machinery, chemicals, or hot equipment. Injuries are a real risk, whether employees work on the production line or serve customers in a taproom.

How Brewery Insurance Helps:

Workers' compensation insurance covers medical expenses, lost wages, and rehabilitation for injured employees. This coverage is necessary to protect your employees and your business from expensive lawsuits related to workplace accidents.

  • Business Interruption

Unexpected events, like fires or other disasters, can lead to business interruptions, temporarily closing your brewery. This downtime can result in lost income and additional financial strain.

How Brewery Insurance Helps:

Business interruption coverage compensates for lost income when your brewery cannot operate. This ensures that you can continue to meet financial obligations while working to recover from a disaster.

The Importance of Specialized Coverage

General business insurance policies don't always provide the necessary protection for breweries. Specialized brewery insurance covers the unique risks involved in the brewing process, including property damage, product liability, liquor liability, workers' compensation, and business interruption.

At Tompkins Insurance Agencies, we understand brewery owners' challenges and offer tailored insurance solutions to protect your business.

Contact us 24/7 at 1-888-261-2688 in New York or 1-888-601-2611 in Pennsylvania today to learn how brewery insurance can safeguard your operations, equipment, products, and employees. You can also visit one of our many locations across both states.

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