What made you leap into the world of craft brewing? Was it to create a space for people to enjoy a good drink with good friends?
Or did your skill for crafting unique brews demand you take a step beyond enjoying a hobby and into running a business?
Perhaps you felt like this was your chance to take your shot. The world has changed. New opportunities are here.
As you’ve considered what you need to ensure you run your craft brewery business the way you want, you almost certainly have the central issues covered.
- Customer Service
We want to help you process one critical, yet often overlooked, component to running a successful craft brewery: insurance.
All businesses have insurance needs. But craft breweries are unique. You don’t want to overlook insurance needs you are unaware of – before it’s too late.
With over 25 years of experience, JFA Insurance Brokerage and Associates is here to guide you in learning about the insurance coverage your craft brewery needs – so you can keep living your dreams.
Pitfalls of a Craft Brewery Being Under-Insured
You can’t legally drive a car or secure a mortgage without insurance in most states. The same is true for running a business. Micro Breweries included.
Without the proper coverage, it won’t take much to deflate your dreams. One bad batch. One injured customer or employee.
In the craft brewery business, you deal with many variables: inventory, production, retail, customer service, and more.
If any area of your business isn’t adequately protected, you risk significant loss. With the rising costs impacting nearly every industry, your craft brewery’s insurance needs are also affected.
Don’t get caught unprepared or underinsured. You have too much to offer. Too much at stake.
If you have employees – they count on you for a job and income.
If you own a building with serving space – you have people counting on you for a sense of community.
Your providers count on you as a client.
The list goes on. You matter. Your microbrewery does as well. Let us take the insurance stress off your shoulders so you can enjoy caring for the people who rely on you.
Here are the top five overlooked insurance needs of a microbrewery.
1: Animal Liability
Does your craft brewery allow people to bring their furry friends out for a drink? Or even a water bowl at the doorway for people walking their dogs?
Many craft breweries want to provide a laid-back space where people can relax and unwind. For some, this includes letting Fido and Barkly hang out as well.
If you allow dogs or other pets in your establishment, you need to work with your insurance agent to make sure you have at least the following issues covered:
- Property damage by animals
- Veterinary coverage for animals injured on your property
- Coverage for animals that injure each other on your property
- Animal injury coverage if a person gets attacked by a domestic animal
- Injuries caused to and losses suffered by a person allergic to animal hair
These issues cause some microbrewery owners not to allow pets on their property. That’s a risk/reward proposition each owner needs to wager.
You must be appropriately insured if you opt for “risking” allowing pets on your business’ property.
2: Inland Marine Insurance
Don’t let the name confuse you! Marine is simply a term used to describe goods and products being transported. “Inland” means the transportation is happening on the land, not the sea.
Craft Breweries are often stationary. At least they have a home base for brewing.
Many craft breweries, however, have much travel and transportation involved in their business. From pop-ups to fairs to bringing samples to new vendors, you are probably on the move.
If you are, do you know if your current insurance policy covers any losses suffered while in transport?
This layer of insurance is different from your personal auto insurance. Not every personal auto insurance policy is equipped to cover business losses.
If you or employees transport business goods or property in a personal vehicle, you need to consider adding inland marine insurance to your policy.
An inland marine insurance policy for your craft brewery can – and should – cover the business beyond inventory. Don’t overlook computers, cell phones, or other devices or materials used primarily for business purposes.
3: Spoilage, Contamination, and Recall Coverage
Your insurance coverage is probably set to cover the beverages IN your establishment. But what happens when a bottled or canned one leaves your property?
Do you know if your insurance policy covers malfunctions off-site? Tony Peck, the owner of Dead Armadillo Craft Brewing, found out the hard way that his insurance did not cover this issue.
Diastaticus Contamination is a rare issue caused by a contaminated strain of yeast. SevenFiftyDaily explains it like this:
“Contamination with this strain of yeast can cause the beer to spontaneously referment, producing excess carbon dioxide. The resulting pressure can burst through glass, cans, or other packaging.
Exploding beer bottles. Cans. Yikes!
No one intentionally uses or sells contaminated yeast. But these things happen. If you’re not covered, this could cause significant losses for your business.
4: Cyber Liability Insurance
In your craft brewery tasting room, clients may want to feel like “everybody knows their name.” But that’s not what people want online.
At least, not when it comes to credit card data, home addresses, and more.
It’s impossible to run a successful microbrewery in today’s world without relying on clouds and cashless transactions.
And if you have subscriber lists, recurring orders, or more, then you must ensure that portion of your business is also covered.
Cyber thieves don’t care what business you run or how good your intentions are.
We do. And we want to ensure you have the coverage you need to continue to provide the good products and services the world needs.
Tools To Discern Your Micro Brewery Insurance Needs
Are you ready to see what insurance coverage your craft brewery needs? Our partners at The Hartford have created this excellent tool to help you process what insurance coverages you need.
Our friendly experts are standing by, ready and waiting to help you find the specific, personalized coverages you need for your craft brewery. We can connect today!
We understand that you may – or may not – need to have domestic animal liability coverage. And we’re prepared to ask the questions you may not know you need to ask.
Reach out today for a free quote to get the insurance you need to do the work you love.