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What is brewery insurance?

Brewery insurance is designed specifically for craft breweries. If you’ve been in this business for a long time, then you’re likely aware of all the risks – and might’ve even experienced some of these incidents yourself. On the other hand, if you’re new or only about to get into the brewery business, then you may not yet fully realize how much can go wrong, and more importantly, how much it can all cost.

One common risk brewers face is batch spoilage, but that’s just the tip of the iceberg. As your brewery grows, so do the risks. The larger the business, the greater the challenges you’ll need to manage.

For example, what if a fire breaks out in the middle of your brewery, damaging both the building and some of your equipment and machines? Without insurance, these expenses would come out of pocket. In another instance, if you also serve alcohol at your brewery, there is a risk of a customer becoming intoxicated and injuring themselves or causing damage as a result. With insurance, these events will be covered. And should a disaster strike, you’ll be prepared for it.

Who needs brewery insurance?

If you run a craft brewery, you need insurance. No ifs, or buts. If you serve alcohol to customers, then at the very least, you need to have liquor liability coverage. That’s one example. Commercial general liability is another coverage that you’ll likely need without exceptions – again, to ensure you are protected should a third party (such as a customer) get injured inside your brewery.

There are, of course, other coverages you should consider, such as protection for your commercial property (as in, the brewery itself) or spoilage and product recall protection. Most coverages may seem extraneous, or like they are not worth the money, but nothing could be further from the truth. Breweries file claims regularly, so incidents do occur within them. Just because certain incidents haven’t impacted you yet doesn’t mean they won’t impact you in the future. It’s better to be prepared.

That said, everyone has their budgets, so select your coverage carefully.

What does brewery insurance cover my business for?

Brewery insurance covers a wide range of potential incidents and aspects of your business. However, some coverages are more important than others. Here are some of the must-haves.

• Commercial general liability: Protects against legal claims made by third parties for bodily injury or property damage that occurs on your premises.
• Commercial property: Covers damage to your brewery’s buildings, equipment, and inventory due to events like fire, theft, or natural disasters.
• Liquor liability: Provides coverage for claims related to the sale or serving of alcohol, for example, injuries that are caused by intoxicated customers. This is only necessary if your brewery allows customers to consume alcohol on the premises.
• Spoilage and product recall: Should a batch of beer become contaminated or spoiled, causing it to be recalled, you can get reimbursed for your losses.

What insurance coverage add-ons are recommended for breweries?

You can always expand your coverage via add-ons. Here some of the most common ones among brewers:

• Business interruption: Provides coverage for lost income if your brewery has to shut down temporarily due to a covered event, such as a fire or flood.
• Equipment breakdown: Covers the cost of repairing or replacing essential brewing equipment that breaks down unexpectedly.
• Cyber liability: This coverage will cover you in case of a data breach. For instance, if you store partner or customer data, and it gets leaked, you could be looking at a potential lawsuit.

How much does brewery insurance cost in Canada?

The cost of your insurance will depend largely on the size of your brewery. Smaller breweries should expect to pay between $1,500 and $3,000 a year, whereas bigger ones might pay between $5,000 and $10,000 a year.

Note that your revenue, the number of employees, production volumes and similar factors will all have an impact on your premiums, so take this information with a huge grain of salt.

We recommend talking to a broker or getting a quote through a comparison site like RATESDOTCA, if you want to know your exact premium. The latter can be done right now for free – on whatever device you prefer.

What factors determine the cost of brewery insurance rates?

Several factors can influence the cost of brewery insurance rates, including:

• Size and revenue: Larger breweries with higher production volumes and revenues typically face higher insurance costs.
• Location: Breweries located in areas prone to natural disasters or high crime rates may see higher premiums.
• Type of coverages: The more coverages and add-ons you choose, the higher your overall insurance cost will be.
• Age and condition of your brewery: Depending on the condition of your buildings and equipment, your rates may be higher or lower. The older the equipment, for instance, the more likely it is to malfunction and require repairs (thus, leading to a claim).
• Claims history: The more claims your brewery has filed in the past, the more claims it is likely to file in the future. If you want to lower your rates, try to develop ways of reducing the number of claims you make. For example, if you have a lot of old equipment that breaks down often, consider investing into new equipment to avoid those breakdowns.

How does brewery insurance work?

Brewery insurance works much like other types of commercial insurance. You pay an annual premium to your insurance provider in exchange for coverage against various risks. If an insured event occurs, you file a claim with your provider, who will then assess the claim and determine the payout amount.

It’s crucial to understand the terms and conditions of your policy, including any exclusions or deductibles. This knowledge will help you know exactly what is covered and what isn’t, ensuring there are no surprises when you need to file a claim.

In summary, brewery insurance provides a financial safety net for your business, allowing you to focus on brewing great beer without worrying about potential risks.

How to get the cheapest brewery insurance quote

To get the cheapest brewery insurance quote, follow these steps:

• Shop around: Compare quotes from multiple insurance providers to find the best rates and coverages.
• Bundle policies: Consider bundling your brewery insurance with other business insurance policies to get a discount.
• Improve safety measures: Implement safety measures and maintain a clean claims history to potentially lower your premiums.