What Coverages Do Craft Brewery Insurance Policies Provide?
Microbreweries and craft breweries often need both general business insurance policies and coverages tailored specifically to the beer-brewing industry. Both types of policies and coverages may be available through a craft brewery insurance policy.
Some of the general business policies that a brewery might want to look for include:
- Building Coverage, which may protect a brewery's facility
- Contents Coverage, which might protect a brewery’s equipment
- Business Interruption Coverage, which usually provides compensation for revenue lost due to a covered claim
- Equipment Breakdown Coverage, which can help pay for repairs to equipment that breaks down during a covered incident
- General Liability Coverage, which provides broad protection against lawsuits
- Product Liability Coverage, which may cover a brewery if its beers spread a food-borne illness
- Excess Liability Coverage, which is a secondary form of liability insurance
Most of these coverages are highly relevant to certain situations that breweries can face, but they’re also used by businesses in other industries.
A few coverages that are more specific to the food service and brewing industries include:
- Restaurant Property Coverage, which a brewery may need if it has a restaurant, pub, or tasting room
- Tank Leakage Coverage, which might reimburse a brewery for beer stock lost due to a tank leak
- Tank Collapse Coverage, which may cover the expenses associated with processing water after a tank collapses
(The exact coverages that a single craft brewery policy provides depend on the policy’s terms, conditions and exclusions.)
Can Craft Brewery Insurance Premiums Be Deducted from Taxes?
As long as insurance premiums are used only to insure a brewery, they’re generally tax deductible. How they’re deducted may depend on a brewery’s business structure, and tax laws can change from year to year. For specific advice, breweries should consult an accountant who can review their situation and tax liabilities.
How Can New York Breweries Get Microbrewery Insurance?
With the help of an independent insurance agent, craft breweries can quickly get several quotes for microbrewery insurance policies. Because some of the coverages that breweries often need, such as tank collapse coverage and tank leakage coverage, are specific to the industry, breweries should look for an agent who specializes in serving breweries in New York.
Protection is Everything
Microbreweries often start out as small operations, making just a few batches of beer at first. Being small, however, doesn’t protect breweries from potential perils. Breweries large and small can have property damaged, be sued for damage or injury they cause, or face any of a number of other incidents. Every brewery in New York should have microbrewery insurance before it sells its first beer.