Why do breweries need insurance?
Brewing takes time and money—which means a fire or other disruption could lead to tremendous financial losses. Business insurance covers your losses if a fire destroys your inventory, or a fermentation tank breaks down. It can also pay for lawsuits from customers who take a fall in your beer garden or have an allergic reaction to a beverage.
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Brewery owners can save money by comparing quotes from top-rated insurance companies.
Fill out Insureon's easy online application to get free quotes and advice from a licensed agent.
What types of insurance does a brewery need?
These insurance policies cover the most common risks in the brewing industry.
General liability insurance
A general liability policy covers third-party business risks, such as a customer who trips in your brewery's tasting room and files a lawsuit. It's often required for a commercial lease.
- Accidents that harm customers
- Copyright infringement lawsuits
- Product liability insurance
Business owner’s policy
A business owner's policy, or BOP, is a cost-effective way for brewery owners to buy general liability coverage and commercial property insurance together.
- Customer bodily injuries
- Business property damage
- Business interruption incidents
Workers’ compensation insurance
Most states require workers' comp for breweries and distilleries that have employees. It also protects sole proprietors from work injury costs that health insurance might deny.
- Employee medical expenses
- Disability benefits
- Lawsuits from employee injuries
Cyber insurance
Cyber insurance helps breweries recover financially after a data breach or cyberattack. It's strongly recommended for any business that stores customer information.
- Customer notification costs
- Fraud monitoring services
- Data breach investigations
Commercial auto insurance
This type of insurance coverage pays for legal fees and damages in the event of an accident involving your brewery's vehicle. Almost every state requires this policy for vehicles owned by a business.
- Medical bills from an accident
- Property damage caused by your vehicle
- Auto accident lawsuits
Commercial umbrella insurance
Umbrella insurance boosts coverage on a brewer's general liability insurance, commercial auto insurance, or employer’s liability insurance once the limit is reached.
- Customer injury lawsuits
- Auto accident lawsuits
- Employee injury lawsuits
How much does brewery insurance cost?
The owner of a small brewery can expect to pay less for insurance than a larger business.
Factors that affect the cost of business insurance include:
- Type of business, such as microbrewery, winery, or brewpub
- Business property and equipment
- Business income
- Location
- Insurance products purchased
- Coverage options
How do I get brewery insurance?
It's easy to get insurance for breweries and other beverage manufacturers if you have your business information on hand. Our application will ask for basic facts about your company, such as revenue and number of employees. You can buy a policy online and get a certificate of insurance with Insureon in three easy steps:
- Complete a free online application.
- Compare insurance quotes and choose a policy.
- Pay for your policy and download a certificate.
Insureon's licensed insurance agents work with top-rated U.S. providers to find the right insurance solutions for your brewing business’s unique risks, whether you work independently or hire employees.
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FAQs about business insurance for breweries
Review answers to commonly asked questions about craft brewery insurance policies and requirements.
Is insurance required for craft breweries and distilleries?
Yes, you'll likely need insurance for your brewery, though it depends on the specifics of your business. Here are the policies that are most often required by laws and contracts:
- Workers' compensation insurance: In most states, you must carry this coverage as soon as you hire your first employee. It covers medical treatment and disability benefits in the event of a work-related injury. Even when it's not required, it can offer crucial protection against costly medical bills for sole proprietors and others.
- Commercial auto insurance: If your brewery owns a delivery truck or other vehicle, then your state likely requires this coverage. If you drive a personal, leased, or rented vehicle for work purposes, then look into hired and non-owned auto insurance (HNOA) to add liability protection for your business driving.
- General liability insurance: Landlords and lenders often require you to have a general liability policy to handle incidents that might otherwise affect them financially. It covers accidents that harm customers or damage their property, and typically includes product liability insurance to cover harm caused by your products, too.
Even if you're already insured, you may still need to buy commercial insurance. Both personal auto insurance and private health insurance won't cover incidents that are related to your job. Similarly, homeowner's insurance typically denies claims related to business property and liabilities.
Does my brewery need liquor liability insurance?
Whether you need liquor liability insurance depends on your business operations and the laws in your state. Sometimes called dram shop insurance, this policy covers liability claims if an intoxicated customer served by your business goes on to injure someone or damage their property.
If your brewery manufactures craft beer and then distributes it to liquor stores and bars, then you likely don't need this coverage. However, if you sell or serve alcoholic beverages directly to customers, then you do need this coverage.
Liquor liability insurance is especially valuable in these situations:
- You sell beverages directly to customers
- You offer tastings to customers
- You operate a brewery in a state with dram shop laws
Most states have dram shop laws that place the blame for damages caused by intoxicated customers on the business that served them. In these states, you could end up paying for expensive legal fees out of pocket if an overserved customer causes harm that leads to a lawsuit.
In states without dram shop laws, you could still be taken to court for damages caused by an intoxicated customer. This can prove costly even if the judge rules in your favor.
What other types of insurance do breweries need?
Brewery owners often buy the following insurance products as part of a comprehensive risk management plan, depending on their specific needs:
- Business interruption insurance offsets financial losses when a fire or other covered property claim forces your brewery to close temporarily. It's also called business income coverage.
- Product liability insurance pays for legal costs related to harm caused by a product, such as a contaminated batch of beer that makes some customers ill. It's usually included in your general liability policy.
- Product recall insurance helps cover the cost of collecting and disposing of recalled products, such as a shipment of beer cans with defective pull tabs. It also assists with PR efforts related to the recall.
- Commercial property insurance helps craft brewers recover financially after a fire, storm, or other incident damages your building or its contents. If you have a home-based business, another option is to add business personal property (BPP) to your general liability policy to cover your equipment and inventory.
- Equipment breakdown coverage covers your expenses if a fermentation tank, chiller, or other essential piece of brewing equipment breaks down unexpectedly. However, it doesn't cover everyday wear and tear.
- Inland marine insurance provides essential coverage for business property in transit, at storage lockers, or used at off-site events, as commercial property insurance only covers items at your primary location.
- Food contamination and spoilage coverage is crucial for businesses that have perishable items. Brewers can add this to their commercial property coverage to protect against losses when a power outage or equipment failure renders your beer unsafe.