Microbreweries, sometimes called craft breweries, offer much smaller batches of brew than larger, more traditional breweries. Most of these are specialty brews made to highlight specific ingredients, proportions, or fermenting procedures.
Some microbreweries are very small with a private tasting room, while others are either associated with a particular restaurant or participate in various festivals throughout the year – beer festivals in particular. However you’re operating, you are showing distinctive signs of growth. In fact, the Brewer’s Association reports that there were 2,397 microbreweries in the U.S. in 2015, a 21.6 percent increase over 2014 numbers.
While craft breweries such as these are different from traditional breweries, both have something important in common. Both need to find the right insurance coverage to protect their interests.
What Kind of Insurance do Specialty Breweries Need?
While some insurance coverages will vary according to the specific type of business you’re operating, the insurance policies listed below are fairly universal for all microbreweries.
- Commercial Property Insurance – important coverage that extends to the physical property of your business. It includes things like equipment, furnishings, and inventory of your business.
- Liquor Liability Insurance – provides liability protection for legal expenses, settlements, or judgments against your business in the event that you serve liquor to someone who then goes out and has an accident under the influence.
- Workers’ Compensation Insurance – required by law for practically any business that has employees, this insurance protects your business if an employee is injured or becomes ill as a result of their work responsibilities.
- Equipment Breakdown Insurance – you deal with a lot of delicate brewing equipment. Your business can’t operate effectively without it. This insurance helps you repair or replace equipment that is broken according to the standards of the policy.
- Business Interruption Insurance – natural disasters, fires, and other events happen. When they do, this insurance helps to replace the income your business is losing while you’re unable to open due to repairs.
- Trademark/Copyright Infringement Insurance – while you may never intentionally infringe on the trademark or copyrighted materials of another business or specialty brewery, unintentional infringements happen. This coverage protects your business from losses that might take place as a result of those unintentional infringements.
Getting the right kind of insurance for your brew pub from the start can save you from a ton of worry while mitigating your risks as a business owner. Working with a local agency can help you understand more about insurance needs that may be unique to your community.