Microbrewery Insurance

Microbreweries are exposed to an array of potential risks. In addition to risks that are common to many businesses, breweries also face perils that are unique to the industry. Microbrewery insurance policies help protect breweries from lots of the risks they face, including both general ones and ones that are more specific to brewing beverages. Microbrewery insurance policies are specially designed for the unique insurance needs that breweries have. Policies are typically package policies, which means they combine several individual coverages together.

Many of the coverages that are available through microbrewery policies could be purchased independently. Getting each coverage as a separate policy, however, would likely be more expensive. Each individual policy’s terms and conditions would have to be compared with those of other policies to ensure there weren’t any gaps in coverage, and a brewery wouldn’t be able to take advantage of the discounts insurers offer for getting multiple coverages through a package microbrewery policy.

The individual coverages that craft brewery policies offer are often tailored to a brewery’s particular situation, so policies frequently have slightly different coverage combinations. Nonetheless, there are lots of coverages that are widely available through most craft brewery insurance policies. Some common coverages include: General Liability Coverage, which businesses used in many industries to protect businesses from common risks; Business Property Coverage, which lots of businesses use to protect buildings and equipment they own; Business Interruption Coverage, which many businesses use to safeguard against disasters that disrupt incoming revenues; Restaurant Property Coverage, which restaurants often carry and breweries that have tasting rooms may need; Tank Leakage Coverage, which may reimburse a brewery for beer stock that’s lost due to a leak in a tank; and Tank Collapse Coverage, which may pay for water processing if a brewery's tank collapses.

Most microbrewery policies are not set up to provide workers compensation, disability, or health insurance. Breweries that want or need these types of insurance normally purchase them through separate policies.

Small and mid-sized breweries generally ought to consider getting craft brewery insurance. Craft brewery policies offer an affordable way to get lots of the protections that these breweries should have. Large breweries also need many of the coverages that are offered by craft brewery policies. In some cases, though, large breweries’ insurance needs go beyond what craft brewery insurance is designed to provide protection for. While large breweries may want to talk with an independent agent about getting a craft brewery policy, they will likely find that a slightly different insurance policy is more suited for their insurance needs. Distilleries and wineries also need similar insurance coverages, but they’re usually better off with a policy that’s tailor-made for them. Many insurers that offer craft brewery policies also have policies for distilleries and wineries that are similar yet slightly different.

Insurers consider many different factors when determining how much microbrewery policies cost. A few items they may take into account include how large a brewery is, how many employees a brewery has, whether a brewery offers tours, where a brewery is, whether a brewery has previously filed insurance claims, and what coverages and limits a brewery selects.