Risk Strategies Company
Risk Strategies Company


Risk Strategies Company

Brewery Coverage

MicrobreweriesInsurance.com can help, whether you are just about to lease a commercial space to start your microbrewery or you are an established microbrewery. As a national broker, we have access to carriers that specialize in providing insurance solutions for microbreweries.

Here are some of the insurance coverages that you need or should consider:

General Liability Insurance - You should get this coverage going as soon as you start manufacturing or serving your product. It will cover you for a legal obligation because of bodily injury or property coverage you cause to a third party. That would cover any slips or falls by non-employees at your factory (or restaurant). This coverage is based on gross sales and there will be a rate per $1,000 of income. An audit is usually performed at the end of the policy period, so be prepared to allocate premium if you over exceeded your original sales projection/estimate.

Property Insurance - Is needed once you purchase brewery equipment or any other type business equipment. This limit can also cover any build-outs investment within your leased property location. Property policies also have the ability to cover:

  • Small inventory shipments to customers, etc.
  • Loss of income
  • Building (if you own property)
  • Electronic equipment
  • Exterior signs

It typically makes financial sense to purchase as a package policy with same carrier as the General Liability.

Inland Marine or Stock Through Put Insurance - A separate policy for frequent or large shipments that you are financially responsible for while being transported.

Liquor Liability Insurance - Covers you for claims pertaining to serving, sale or making of your beer. This typically would be participating in sales oriented tasting (hosted at bars, restaurant and stores) and pouring at festivals or special events. This coverage is usually purchased along with the General Liability. Premium is based on gross sales.

Automobile Insurance - Provides coverage for owned or non-owned vehicles used in the business. If you frequently rent vehicles or have employees use their personal vehicles for errands, then you must have non-owned and hired auto liability coverage.

Umbrella Insurance - Provides excess coverage/limits over the General Liability, Auto Liability and Employers Liability. Any policy should have a section within the policy that schedules any underlying policies.

Workers' Compensation - Is a state required no-fault insurance for employees. Therefore, you need to secure coverage immediately when you hire that first employee. Owners have the option of being included or excluded on the policy (subject to min/max payroll). The three most common class descriptions used are brewery employees, clerical employees and outside sales. So make sure you break out any estimates by those three classifications. Policies are auditable (at end of term) and based off payroll. The rate would be per $100 of payroll. Once again, budget accordingly if you hire additional employees throughout the policy term.

Bonds - May be required by state and federal governments to operate a microbrewery