Policies Crafted for Breweries and Distilleries
The Pacific Northwest has long been the home of many well-loved and hand-crafted brews, and the legacy continues as more local community members break into this fast-growing industry. Due to the nature of the industry, owners of breweries and distilleries face diverse obstacles and one-of-a-kind hazards that may feel overwhelming. Our team of knowledgeable insurance professionals understands these needs and can seamlessly take the guesswork out of protecting your craft.
Insurance for breweries and distilleries is designed for your unique niche. Some of the essential coverages specific to breweries and distilleries are:
- Equipment Breakdown
- Liquor Liability
- Products & Completed Operations
- Product Withdrawal
- Workers Compensation
Product Protection for Breweries and Distilleries
There is an art in creation, including the brewing and distillation of craft beverages. In order to create their unique product, breweries and distilleries rely on high-tech, industry equipment to bring their product to life. Every element of the process is essential, from crafting the perfect recipe to mass production. What if one piece of the puzzle stops working? In most cases, the entire operation shuts down while you work to get the equipment repaired or replaced. Equipment Breakdown coverage offers protection against loss of income and accounts for extra expenses incurred during a breakdown period. It won't pay for the direct cost to replace any malfunctioning or worn-out equipment, but you can still count on consistent income while you get your operation back on track.
Another consideration for equipment breakdown situations is your on-hand stock. For certain brews, there may be quite the list of ingredients to bring the fullest flavor to every bottle. Every ingredient has a shelf-life, and certain circumstances like power outages or contamination can quickly shorten this timeframe. Contaminants are rampant risks in any food-related industry, and breweries and distilleries are subjected to these same hazards. Spoilage coverage ensures that your perishable stock is covered in the event of a contamination event, power outage, or mechanical failure so you can replace the items without having to come out of pocket.
Once your products are ready to hit the shelves, you have a whole new set of potential risks. Even if you sell the product through a third-party such as a grocery store or local restaurant, the liability is still linked to you and your brand. In the event someone becomes ill or injured from consuming one of your brews, your company could be considered negligent and a lawsuit could be brought against you. Products and Completed Operations is a subset of General Liability that protects you if your product causes harm to a consumer.
Additionally, if you discover the cause of the illness or injury was in fact due to negligence in production, you may have to recall every bottle processed in that same batch. Product Withdrawal coverage pays for the costs associated with recalling products that are unfit for sale or consumption so that you can keep your customers safe. It can also help cover expenses related to rebuilding reputation since recalls often have a negative impact on brand perception. These two coverages are essential in making sure that any of your completed products are covered in the event of a quality issue.
Risk Management for Breweries and Distilleries
The industry of brewing and distillation comes with inherent risks, primarily due to the nature of the business. Breweries and distilleries use involved machinery and equipment that requires specialized training and attention to operate successfully. Staff are at risk of injury any time they are on the job, but this risk increases significantly when employees are expected to operate high-tech equipment that is found in a brewery. Workers Compensation is important to carry as a brewery or distillery in the event your staff become injured during the course of employment. If they are hurt while carrying out a task, Workers Compensation will pay for their medical expenses and ensure you aren't left financially responsible for their bills.
Many breweries and distilleries also have an onsite premise open to the public to taste and experience their products. Liquor Liability is critical coverage to have anytime alcohol is being served by a business. This coverage protects you and your staff against negligence caused by overserving and any reckless behavior committed by your consumers. While you cannot control what people do, you can protect yourself, your staff, and your business by carrying Liquor Liability. It is strongly encouraged that all staff serving alcohol are properly trained and licensed to prevent overserving instances, and that rules are strictly enforced to ensure people do not inadvertently become too intoxicated to act reasonably. By taking these precautions, you can minimize the chance of negligence with serving alcohol and keep people safe.
Ready to find the right coverage for you? Our team of commercial insurance agents are here to provide insurance solutions that suit your brewery and distillery so you can have peace of mind no matter where your business takes you.