Craft Brewery Insurance
Sturgis, Summerset

Your brewery, its needs, and its risks are unique, and the coverage that best suits your business may vary from someone else’s. However, there are insurance coverages everyone with a craft brewery should consider, including:

• General Liability: Covers the cost of property damage or bodily injury that occurs on your business property or as a result of your products, services, or advertising.

• Commercial Property: Can offer you a financial safety net if disaster hits and your business’s property is damaged by fire, weather, or smoke.

• Boiler and Machinery Coverage: Many smaller breweries can’t handle the production interruption caused by the loss of a critical piece of equipment. This coverage can help with repair or replacement costs for damaged equipment and help cover losses from production interruption and downtime.

• Supply Chain Insurance: If your brewery is like many other craft breweries, you don’t keep a large stock of ingredients on-hand, making regular shipments from suppliers essential. Supply chain insurance will cover losses resulting from decreased production or increased production costs if one or more of your suppliers cannot provide the materials you need.

• Spoilage and Product Recall: If a batch of beer is contaminated during the brewing and packaging process or spoils before distribution, a spoilage provision can cover the initial production cost and lost revenue. If a contaminated batch isn’t caught before shipping and the beer makes it to store shelves, product recall coverage can help offset the costs of removing and replacing the tainted product.

• Liquor Liability: Regardless of whether you have a full-service bar or offer beer tastings after tours, liquor liability is essential to cover damage to persons and property caused by patrons over-served at your establishment.

Mixing and matching these policies based on your brewery’s unique needs allows you to obtain coverage at a price that works for you. Some insurers offer these coverages in packages designed for craft brewers that you can tailor further to address your needs better. If your operation involves a restaurant or other food service, you will need to consider additional coverage for related exposures.

Will insurance cover my brewing equipment?

You would be covered if you have boiler and machinery insurance and your brewing equipment breaks down.

Given the small size of most craft brewing operations and their lack of backup machinery, equipment failure can be catastrophic for production. Not only will there be repair and replacement costs, but there’s also the chance you’ll have to suspend part of your operations until the equipment is fixed, resulting in lost sales revenue.

For situations like these, boiler and machinery insurance makes a big difference.

What if some of my beer isn’t brewed correctly, and I have to throw it out? Is that covered?

No matter how diligent you are about creating a safe, quality product, there may be times when circumstances beyond your control result in a batch of beer unfit for customer consumption. If you catch a contaminated batch before it leaves your brewery, you face the cost of wasted materials, production time, disposal, and a revenue loss. If the contaminated batch makes it to store shelves, it can be even more costly.

With spoilage and product recall insurance, you can recoup at least part of your losses if you have a contaminated batch of beer.

How much does craft brewery insurance cost?

Earlier, we mentioned that no craft brewery insurance policy looks like another. The same can be said for your insurance premium as well. Because there’s so much variation between craft breweries, there’s no precise premium estimate. However, we can tell you what factors influence your premiums.

• Your brewery’s location
• Type of brewery you operate
• Whether you offer tours or have an on-site restaurant
• Number of employees
• Coverage amounts
• Your chosen deductibles

You’ve worked hard to build your craft brewery; the next step is to protect it with the right insurance. We specifically insure craft breweries and have years of experience helping breweries like yours find risk management and insurance solutions. 

With advice from an independent agent, you can craft the finest brews for your customers while we focus on your insurance needs. We’d love to chat with you. Contact us today!

Frequently Asked Questions

• Will my insurance cover my equipment I use to brew?

  Given the small size of most craft brewing operations and their lack of backup machinery, an equipment failure can significantly impact production ability. If equipment is damaged or breaks down, not only will there be repair and replacement costs, but there is also the chance that you will have to suspend part of your brewing operation until the equipment is fixed, resulting in lost sales revenue.

• What if some of my beer is not brewed properly and I have to throw it out? Is that covered?

  No matter how diligent you are at producing a quality product, there can be times when situations beyond your control result in a batch of beer unfit for customer consumption.

  If a contaminated batch is caught before leaving the brewery, you face the cost of wasted materials and production time, disposal, and the loss of revenue from not being able to sell the final product.

  If the batch makes it to store shelves, it can be even more costly. Not only is there the time and cost of replacing the contaminated product with a sellable one, but there is also the need to protect your brand during a recall.

  A poor product experience can be especially damaging for small brewing operations that rely heavily on word-of-mouth advertising. Be prepared to work not only with distributors but also directly with consumers who have received a less-than-quality product.

• Can I serve my beer at events?

  When you open your property to the public you are responsible for their well-being. This is exceptionally important if you offer tours of your brewing operations. Given the possible hazards that an untrained guest could be exposed to, it is important to keep tours confined to safe areas and preplanned routes through your establishment.

• How Much Does Craft Brewery Insurance Cost?

  The cost for craft brewery insurance will depend upon the size of your business and the type of brewery you operate, the specific risks you are exposed to, and the coverage amounts and deductibles you choose. Your independent agent can help review your risks and provide craft brewery insurance costs for coverage that would best protect your company. Contact your independent agent to discuss getting a craft brewery insurance quote for your business.