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Selecting the appropriate insurance program is essential for your craft beverage business. ISA's Craft Beverage Program provides insurance protection specifically for breweries, wineries, meaderies, cideries and distilleries.  We specialize in and thus have unique insight into the needs and risk of your business.  With professional advice from us, an independent insurance agency, you can focus on serving your customers while we focus on your custom tailored insurance program.

The Basics

 

 Brewer’s Bond

This is your first insurance step in starting your business.  An insurance company assists you with writing this to stay in compliance with US Department of Treasury (Alcohol and Tobacco Tax & Trade Bureau (TTB)).  See attached Brewer’s Bond Form.

 Property

·       Building & Contents

This covers the building you own & betterments and improvements you pay for as well as all owned contents.  For example: supplies, equipment, furniture, etc.

 ·       Machinery & Equipment Breakdown

**This is where the costliest claims take place **

This protects equipment which is electrically or mechanically damaged.  For example: boilers, fermenters, canning line, electrical panel boxes, A/C motors, etc.   

 ·       Property in Transit

Self-explanatory – this covers your goods heading to market.

 Business Interruption 

In the event of a covered loss, this coverage provides funds to cover continuing operating expenses and replacement of net income.

 Liability

·       General

This protects you for issues of liability, defined as a bodily injury and property damage for which you are legally responsible.  This includes occurrences on-premises, off-premises, and for your product (ex. bodily injury caused by sickness), 

 ·       Liquor

This protects you from issues of liability arising from:

a)      The manufacturing and distribution of alcohol

b)      The serving of alcohol (see Derek Allen at Ward & Smith about free ServSafe training)

 ·       Employment Practices Liability Insurance (EPLI)

This covers wrongful acts arising from the employment process.  The most frequent types of claims filed and covered include: sexual harassment, wrongful termination, discrimination, and retaliation.  These actions of owners, directors, officers, and managers are covered.

 Workers’ Compensation

This provides coverage for employee injuries sustained while on the job.  We recommend all businesses secure this coverage & is a requirement with the state of NC if you have 3 or more employees.  See attached for information from the Industrial Commission website.

 Business Auto

Providing coverage for delivery & general business use vehicles owned by the company.

Specialty Program Advantages

 

Brewery Property Endorsement

This provides coverage for specific issues of being in your business, including tank leakage, tank collapse, loss of processing water, and key employee replacement expense.  Tank collapse is key as many carriers do not include coverage for this important risk.  To date, two of the largest Cincinnati Insurance brewery claims to date have been due to tank implosions.

 Contamination & Adulteration

This provides coverage if an unintended ingredient or bacteria left in the tank ruins a batch of beer.

 Spoilage

This is different than contamination as this covers spoilage of product due to a change in temperature or humidity.

 Selling Price Valuation for Finished Goods

Standard insurance policies will pay valuation for cost of goods whereas this would pay you for the selling price of the goods lost.   

 Special Event Coverage

This provides coverage when exhibiting at festivals and events away from the brewery premises.

 Key Person Life Insurance

This may be required or stipulated by a lending entity.

 Flexibility for Growth

As your business grows, we recommend selecting a company that has the flexibility to insure your long-term vision including addition of: a tasting room, a restaurant, canning/bottling lines, new locations, etc.



Information Gathering, Pricing, Suggestions

General Application

Agents collect information about the building value and characteristics (for older buildings you need to know updates for roof, HVAC, wiring, & plumbing), contents, projected sales, payroll.

 Specialty Supplemental Application (Example attached)

This collection of information is specific to the production of craft beverages.

 Loss Mitigation

 ·       Redundancy: Create a backup plan including access to another facility or rental of equipment including boilers & fermentation tanks.  Though more costly, you could establish multiple systems in house.

 ·       Inspection Assistance: Use an insurance company that can assist with inspections on steam boilers.  The state of NC issues and maintains the certificates of operation for low-pressure and high-pressure systems.  Cincinnati has machinery & equipment specialists who inspect and submit reports to the state for you.  Low-pressure boilers (15 maximum PSI or less) are required to have external inspections every 2 years.  High-pressure systems are required to have internal & external inspections every year.  Cincinnati is willing to perform internal tank inspections on a case-by-case basis if deemed beneficial to you and to the company.

 ·       Code compliance for tanks: there is a placard on the front of the tank.  Take a photo and we will have someone at the home office review

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Asheville
828-253-1668

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