Many craft brewery owners know that their business should probably carry certain common insurance coverages, such as general liability coverage, commercial property coverage and workers compensation coverage. These are far from all of the insurance coverages that breweries need, though. Microbrewery insurance policies often also have a number of other, more specialized, coverages and endorsements that craft breweries can benefit from.
Are There Specialized Coverages That My Brewery’s Microbrewery Insurance Policy Should Have?
Key Employee Replacement Cost Coverage
Key employee replacement cost coverage normally covers unanticipated expenses that arise if a certain employee suddenly dies or becomes permanently disabled. The covered employee(s) are usually designated when the policy is taken out.
Assuming your brewery (like most craft breweries) relies heavily on the expertise of a brewmaster, which may be yourself. Should something unfortunate happen to the brewmaster, your brewery would probably struggle to adjust current beer recipes, develop new recipes and market its beers as expertly crafted.
This coverage can help cover the costs involved with finding a new brewmaster so that your brewery can continue on as a business, even if it’s no longer offering drafts developed by your own hands. The protection is widely available through craft brewery insurance policies.
Equipment Breakdown Coverage
Just as key employee replacement coverage may help with the replacement of essential employees, equipment breakdown may assist with the repair or replacement of essential equipment. If vital equipment malfunctions, this coverage might help pay for emergency repairs so that the operational interruption, repair costs and revenue losses are minimized.
Equipment breakdown coverage is a protection that many manufacturing and processing companies carry. Because your brewery needs equipment to make beer, this is a coverage that should probably be included in the brewery’s microbrewery insurance policy.
Product Contamination or Adulteration Endorsement
A product contamination or adulteration endorsement normally covers certain causes of product contamination. Products are frequently covered both during and after production while they’re in the business’ possession.
This coverage may help replace any batches of beer that are accidentally contaminated. When making just one barrel of beer, a single contaminated batch can result in a loss of more than 330 bottles of beer. Including this coverage in your brewery’s craft brewery insurance is an affordable way to potentially protect against such a loss.
Product Recall Expense Coverage
Product recall expense coverage may help pay the expenses associated with a covered recall, which are often much greater than the retail value of the recalled product itself. Along with reimbursing customers for their purchase of the product, a product recall can also include:
Advertising and promotional expenses to make customers aware of the recall
Shipping costs to return the recalled products
Destruction and disposal costs to get rid of the recalled products
Losses that distributors, wholesalers and retailers suffer
Reputation management and public relations campaign expenses
Should your brewery ever have to recall a batch of beer after it’s been sent to wholesalers or retailers, having this coverage in the brewery's craft brewery insurance policy might provide valuable financial assistance.
Find the Microbrewery Insurance Coverages Your Brewery Needs
These are just a few of the many specialized coverages that are available through microbrewery insurance policies. For help finding a policy that has all the coverages (including common and uncommon ones) that your particular brewery needs, contact a World Insurance Associates agent who specializes in craft brewery insurance. Our agents have helped other breweries and will know what coverages are available and which ones are right for your brewery.