How to Properly Insure a Brewery

insurance for breweriesBecause this industry is growing rapidly and requires specialized insurance coverage, selecting the appropriate insurance is essential for your Brewery. A standard commercial policy will result in significant gaps and create huge exposures to the financial well-being of a Brewery.

The Whitlock Group specializes in Breweries, Microbreweries, Brew Pubs, Contract Brewing Companies and Regional Breweries of all sizes to complement our Commercial and Personal Lines clients.

Our Brewery expert, Michael Park, and his team have created a successful niche providing insurance for Breweries. Michael is uniquely qualified and dedicated to tailoring a comprehensive plan that prioritizes your needs. He will advocate on your behalf.

As our client, you will have access to multiple insurance companies that provide programs for Breweries.

A Brewery is a complex business to insure with expensive equipment and unique liabilities.  

Let’s take a look at some important insurance coverages each Brewery needs.

Michael’s Insurance Advice for Breweries:

  1. Business Interruption Insurance is critical, because it can take months for custom brewery equipment to arrive if it’s been damaged.
  2. Beer Spoilage & Contamination Coverage is important. Develop a contingency plan in advance of an incident.
  3. Protect your Tanks and Fermenters from collapse and leakage with endorsements to your policy.
  4. Make sure you have Product Recall Coverage in case the unexpected happens.
  5. Ensure you have Equipment Breakdown Coverage. Regularly maintain & service your equipment to prevent unforeseen losses.
  6. Confirm you have Selling Price and Market Value Clauses which values finished goods at their “selling price”, rather than their actual cash value or replacement cost, so as to cover the profit portion of the price.
  7. Consider Packaging in Cans instead of bottles to prevent losses from broken bottles, wrong bottle caps, or improper sealing of caps.
  8. Consider Manufacturers Errors & Omissions Coverage. This covers a manufacturing mistake or negligent service that results in a third-party financial loss. Your contract with a restaurant to manufacture a certain amount of beer. Your product is spoiled/contaminated, and you cannot remake the product in time to deliver to the restaurant per your agreement. The restaurant sues you to recoup their financial loss. Manufacturers E&O will cover the restaurant’s financial loss and your defense costs.
  9. Liquor Liability Coverage is mandatory. It covers you for claims arising from the serving, sale or manufacturing of alcohol.
  10. Verify Blanket Additional Insured status for vendors/distributors.
  11. Educate and Train Employees on safe work practices to reduce Workers Compensation claims.
  12. Prevent Burns from Steam by wearing protective eyewear, gloves, long sleeves and boots.
  13. Make Certain Your Servers are TIPS Trained. TIPS is training for the responsible service, sale and consumption of alcohol.
  14. Keep Accurate and Detailed Accounting Records, separating manufacturing, restaurant, tour and item revenue; as well as, bottle, can, keg, and draft revenue.
  15. Obtain State and Federal Liquor Tax Bonds to help you meet surety requirements of taxes and licensing.

Michael’s Tips to Avoid Losses:  

  1. Be attentive to accurate carbonation levels.
  2. Regularly service temperature gauges.
  3. Be vigilant not to over pressurize tanks.
  4. Confirm tanks are empty before refilling.
  5. Regularly clean and sanitize equipment.
  6. Inspect how you store and transport raw materials.
  7. Consider purchasing a backup generator to keep refrigerated conditions consistent during a power outage/power surge.
  8. If not monitored diligently, these can result in expensive losses and downtime for a Brewery.

Only work with a knowledgeable insurance agent, like
Michael Park and his Whitlock Group Team.
Michael understands your trade and can ensure your Brewery is covered!

If you are not sure what coverage you need or if your policy covers you properly,
Talk to Our Brewery Expert:

Michael Park
The Whitlock Group
678-906-2008 x1202