Craft Brewery Insurance Coverage Explained
Craft Brewery Insurance Coverage Considerations
The number of breweries in Canada has grown to over 200 and specialized associations like the Brewers Association have formed to support this growing industry. Of the breweries currently in operation, 98 percent are considered regional craft brewers, microbreweries or brewpubs. Because of this trend, insurers have begun to offer Craft Brewery Insurance policies to address the unique exposures faced by this expanding section of the industry. Given their size and average output, the needs of craft brewers vary greatly from the larger multinational breweries.
In addition to the general liability and property coverages that almost every business should carry, the following policies help protect against common exposures faced by craft brewers and should be part of every Craft Brewery Insurance program:
Boiler and Machinery Coverage
Proper craft brewery insurance coverage can help with repair or replacement costs for damaged equipment from events caused by pressure vessels as well as cover losses resulting from production interruption and downtime.
Supply Chain Insurance
Supply Chain insurance should be part of every craft brewery insurance program and will cover losses resulting from decreased production or increased production costs in the event that one or more of your suppliers is unable to provide the raw materials you need due to an insured event.
Spoilage and Product Recall
If a batch of beer is contaminated during the brewing or packaging process or spoils before distribution, a provision for spoilage coverage in a well-structured craft brewery insurance program can cover the initial production cost as well as lost revenue. Product recalls can help offset the costs of removing the tainted product and replacing it and should be considered as part of every craft brewery insurance program.
Regardless of whether you have a full-service bar or offer beer tastings after tours, liquor liability is essential to cover damages to persons and property caused by patrons and customers consuming your products and or alleging they were over-served by your establishment.
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