The process to start and operate a brewery is exciting and can be overwhelming. You have spoken with a lawyer and incorporated, set up partnership agreements and hopefully have written up a business plan.
The next step usually is finding space to have your brewery located and you have started the process to obtain all licenses and permits you need so you can go into that building and build and operate your brewery. Along the way hopefully someone has sat you down and discussed the insurance options available to you and your business.
Frequently overlooked, your business’s insurance is vital in the long term success of your company. Any business can be crippled by having a loss while not being insured. Make sure you have an insurance specialist look over and advise the risks your brewery faces.
A brief overview to get you started along your way. We suggest the following coverages:
Commercial General Liability: This is the most common type of insurance you will hear about. This covers you for “general” losses that could occur on your premises. This coverage will react if there were slip and falls, trips, personal injury to individuals visiting your location. This coverage will also react if there are fires, floods, sewer back ups and any physical damage to the location you are renting, leasing or own. When inquiring about this coverage you will also be asked what limit you would like to have, this can range generally from $1 million all the way up to in excess of $10 million. Please ask your broker what limit is adequate for you.
Liquor liability: If you have a tasting room on site or are sampling any of the product please understand that this coverage is essential. This responds if something were to happen to a customer who has been served samples or product at your location, either if they get in their car and drive away or are walking down the street and trip and hurt themselves.
Business Interruption: If an insured loss were to happen and your business had to shut down operations for a period of time business interruption insurance would help pay for any lost income plus could potentially help find other
Machinery Breakdown: Your brewery has expensive machinery and parts that can breakdown and cause losses and delays in production. With machinery breakdown the insurance company can expedite the fixing or order of new equipment.
Contamination: Product has been brewed and is either in the bottles, cans or tanks. What happens if this product is found to have been contaminated. The product will most likely have to be flushed down the drain, this can be a massive loss in product, time and money. We have written our own wording to protect you against the potentially contamination of your product.
These coverages are all important and combine to insure there are no gaps in your business insurance. There are other coverages that form part of your commercial package and if you have any questions please ask our professionals at Wilson M Beck Insurance Services (Kelowna) Inc.