Winery Insurance

Yes, you'll likely need winery insurance coverage, though it depends on the specifics of your business. These policies are often required for wineries and vineyards:

• 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, sole proprietors and others should consider buying workers' comp to protect against costly medical bills.
• Commercial auto insurance: If your winery 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.

Winery and vineyard 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 winery 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 brandy 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 defective products, such as a shipment of wine bottles that did not disclose sulfites on the label. It also assists with PR efforts related to the recall.
• Commercial property insurance helps vintners 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 insurance covers your expenses if a fermenter, chiller, or other equipment that’s essential to the winemaking process 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.

Insurance companies sometimes offer specialized winery insurance programs, which include policies like wine contamination and spoilage insurance, wine leakage insurance, chemical drift insurance, and crop insurance for wildfires and smoke exposure. You can consult a licensed agent to find out about specialized insurance for your risks.