Whether you’re brewing small batches out of a converted garage or running a larger operation with a tasting room, every brewery comes with its own set of risks. And while making great beer is your passion, protecting your business should be just as important.
Let’s talk about what that looks like.
First off, every brewer knows how crucial quality control is. The consistency of your product is everything, both for your reputation and to avoid issues like contamination. Whether you’re handling every step in-house or outsourcing things like storage, delivery, or bottling, the risk of something going wrong is always there. And when something does go wrong, it’s not just about losing a batch—it could mean facing financial losses, reputation damage, or even legal claims.
That’s where specialized insurance comes in. Let’s break down some key coverages that you’ll want to consider.
Imagine this: your beer gets contaminated during production, or worse, someone tampers with it. You need to get it off the shelves fast before anyone gets hurt. Product Recall coverage kicks in here, covering the costs to recall your product, inspect it, and even replace it if needed. It’s a must-have to avoid a disaster turning into a catastrophe.
A recall can also hit your brand’s reputation hard. Even if the issue gets sorted out, you might find your sales dipping as customers lose trust in your product. Product Impairment coverage helps cover your lost sales while you work on rebuilding that trust.
Another big issue for brewers is the supply chain. If you’re running a lean operation, you probably rely on regular shipments of ingredients or materials. What happens if your supplier can’t deliver due to a fire, flood, or some other disaster? Without a backup plan, production can come to a screeching halt.
Here are two coverages that can help:
If you’re hosting tastings or tours at your brewery, it’s important to think about liability. Sure, your general business insurance will cover you for things like someone slipping and falling during a tour, but what if someone gets over-served and causes an accident after they leave? That’s where Host Liquor Liability comes in—it covers damages caused by intoxicated patrons after they’ve been at your brewery.
At the end of the day, no two breweries are exactly alike. Your insurance needs are going to depend on how your business is set up, what your production looks like, and whether or not you’re handling things like storage and distribution yourself. That’s why it’s important to work with an insurance broker who understands the brewing industry and can help you assess your risks and put together a policy that’s right for you.
Let’s make sure you’ve got the right coverage in place, so you can focus on what you do best—brewing great beer.
Understanding the Unique Risks for Craft Breweries