What is some of the basic insurance coverage I should have for my company?
Below you will find some of the general lines of coverage you need to have for your business. Depending on your type of business – Production only, Pub (with full restaurant), or a Tasting Room only operation – you will need to add specific coverage to cover each type of exposure. For more detailed information about what you may need send us an email or give us a call!
GENERAL LIABILITY:
Customer “slip and fall” accidents are/will be one of the most common occurrences at your establishment. Among “slip and fall” accidents, this coverage helps cover you for property damage and bodily injury to a “third party” (such as a customer) at your premise. These issues are some of the main things General Liability will cover. This needs to be one of the first, and main lines of coverage, your business should have from the beginning.
PROPERTY:
Besides the building itself, here are some things you will need covered under this policy:
– Brewing/distilling equipment
– Raw materials
– Inventory
– Business Personal Property (i.e. chairs, tables, computers)
Whether you purchase the building, or you just have your equipment and tenant improvements inside a landlords location, this coverage is vital to protecting your everything you use to make your product.
Click to read a REAL example showing the importance of Property coverage
COMMERCIAL AUTO:
Do you self-distribute your product?
The auto that is used in the process of self-distribution should be insured under the business name and on the business policy. This will give you higher limits of coverage and it assumes a higher use of the vehicles.
Will any employees possibly use their personal vehicles in the process of your business? – “Hired & Non-Owned” Auto coverage is a must.
LIQUOR LIABILITY: (state-specific)
One of the MOST important coverage’s for your business. Alcohol is your business, and claims/injuries can have a much higher chance of occurring due to your serving or providing your product.
Depending on the liquor laws in your state you may even be liable for someone who consumed your product at events away from your premise (events where you serve or someone else serves your product) and an injury occurs.Insurance Trevor Stech
UMBRELLA:
This gives you additional coverage above the following:
– General Liability
– Commercial Auto
– Worker’s Compensation (If Employer’s Liability limits meet requirement)
– Liquor Liability (depending on insurance company)
Historically, claims involving liquor can easily be in the millions. If you only have the standard coverage, limits without an Umbrella, who will pay the remainder of your claim if it exceeds your “pre occurrence” amount?? – YOU DO!
WORKER’S COMPENSATION:
You can do everything possible to create a safe workplace, but accidents are still bound to happen. The most common claims in this industry usually involve employees and the process of making the product (this is why the brewing industry is considered a “wet” industry). There are dangerous chemicals and boiling water involved in the process, and kegs full of beer that may need to be lifted can lead to back injuries. This can easily lead to eye injuries or serious burns if proper protection measures are not consistently followed.
A couple recent REAL Worker’s Compensation claims below:
*A brewery worker was fatally injured when a plastic beer keg he was cleaning with pressurized air exploded, striking him in the head and chest.
*A brewer was operating a forklift in the brewhouse, and it rolled (for unknown reasons) killing the driver.
EMPLOYMENT PRACTICES LIABILITY:
This is a coverage that is not required, but is of course HIGHLY recommended. Some common EPLI claims involve sexual harassment, Wrongful termination, and discrimination. There are many forms of discrimination too, be they – employee, customer, or vendor related – and the cost of defense alone can be staggering. While most times you are not at fault and there is no payout, someone still has to pay for defense. If you do not have this coverage in place you may be the one paying out of pocket.
*The average claim payout in this industry was $250,000 per case between 2007-2013*
Click to read a REAL lawsuit of a pricing discrimination between a distributor and brewery
BONDS:
Often referred to as “Brewers Bonds”. These are required by state and federal government to ensure that you pay your taxes on your product. You will need to obtain this before brewing beer and it needs to remain in place as long as you are in operation.