3 Things To Know About Brewery Insurance Programs

All businesses are a form of investment, and just like any responsible business owner, if you’re getting serious about your brew the right brewery insurance program is critical.

The brewery business is charging forward in Australia with a craft beer store or brewery popping up every few weeks. Most of these business owners developed the business out of their passion for crafting beers. However, your business can't survive on passion alone. You need to hedge against any risks that could ruin your investment - and everything you've worked hard for.

In this guide, you will learn all there is to know about brewery insurance and how to choose the right type of coverage and protection.

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Brewery Insurance 101

Just like other types of insurance, it might seem that all brewery insurance is relatively the same except for the cost. However, various businesses are exposed to different risks and they require different types of protection.

Brewery insurance programs are a specific type of insurance product that is designed for a brewery business. This type of business involves a lot of processes, from:

Manufacturing
Production
Storage
Sales, and possibly;
Public consumption

Being a product that is consumed by the public unearths another level of risks and obligations. If you’re not prepared, just one mistake could place a financial claim against the business that the owner may not be able to recover from.

Brewery insurance programs provide specific coverage for this type of business that will cover you for items that won’t be found with general business insurance.

In order to choose the right coverage, you must be aware of and at times forecast the risks that your business is exposed to. This will enable you to mitigate those risks so you can make an informed decision. If you’re unsure, speak to the team at Midland.

1. Why You Need Insurance for Your Brewery

It’s simple: you want to protect your brewery business. Insurance is protection.

You spent all of your time, resources, and effort towards crafting the right beer and building the business. Don’t let that go to waste in the event that a single unexpected incident happens (more on this later). Even a single liability can lead to a major financial loss that could ruin a business.

If you are only concerned with brewing beer, then your risks are only contained within the manufacture and production of the beers (including ingredients, storage, equipment, staff, transportation and more).
If you choose to open your business to the public, the risks and liabilities involved begin to expand of course.

Take this into account when deciding on the final business model for your brewery since the risks are not the same.

Please note, the level and type of protection you need for a distillery is different versus traditional brewery insurance. This is something to consider when comparing quotes from various providers. Be sure to compare brewery insurance programs against other brewery insurance programs.

2. Choosing the Right Type of Insurance

The manufacturing and hospitality industry is always exposed to risks - it’s the nature of this type of business. Since you may or may not be serving your customers with drinks that they will consume, you need to mitigate any risks so that your business is covered for misuse of your products as well as in the event that any untoward incidents happen.

The risks of this industry are present even before you start serving your customers with your products. It begins in the manufacturing and the production processes. For example, it could be that your ingredients are (or become) contaminated or your equipment breaks down.

If your brewery also has an area wherein you welcome guests into your premises, you must also be aware that there are risks if any of these customers become intoxicated. Here are just a few other scenarios that could happen:

A batch of brew becomes contaminated or spoiled
Equipment breaks down that requires repair or else your operations will be disrupted.
Products in storage are destroyed or damaged during transportation
Any leaks or spills from your brew storage tank/s
Accident or injury that directly relates to the consumption of your alcoholic products

Aside from these standard policies, you must also be protected against other risks that could present itself to your brewery business. Here are some examples:

Protection for your company vehicles used to transport beer products or ingredients and equipment for your brewery
Cyber liability protection if your websites database, CRM, payment processor or social media accounts were hacked and your customer database is accessed.
Protection against any financial losses resulting from product recalls in the market.
Protection against any crimes such as theft or fraud that is targeted towards your business.

3. How Much Does Brewery Insurance Cost?

The cost of your insurance will depend on a variety of factors such as the size of the brewery, the equipment covered, the inclusions and exclusions, and more. There is no definitive answer to this as every brewery business is unique.

If you are not sure about the level of protection you need, it is best to consult with brewery insurance experts in Australia. They can help assess the risks and liabilities for your business so you can get the right level of protection. You can even obtain expert advice on how you can mitigate these risks so you can also possibly lower the costs of insurance premiums.

Brewery insurance is one of the most important business expenses that you must account for during the set up stage or before major expansion or launch plans. Get the protection you need now so you can focus on growing your business without worrying about financial risks that could potentially shut down your business.

How To Choose A Brewery Insurance Provider

The type of insurance you choose is just as important as where you get your insurance from.

Whether you are a small or large brewery, you must look for insurance providers that specialise in this industry. As already mentioned, this type of industry has unique needs and risks.

An insurance company that knows the industry inside-out is going to give you an advantage in terms of providing the highest level of protection. Make sure you get the right amount of coverage according to the risks you’re exposed to and your budget.

Speak to the experienced team at Midland Insurance who help breweries across Australia navigate and get covered with insurance that will protect the business and the owners.

Contact Midland Insurance about brewery insurance programs here.