Key Takeaways
- General liability insurance protects against third-party claims from customer injuries on premises.
- Property insurance covers equipment, buildings and inventory from losses like fire, floods and theft.
- Commercial auto covers vehicles used for deliveries, employee transport and business travels.
- Workers’ comp covers medical costs and lost wages for on-the-job employee injuries.
- Product liability protects against lawsuits over contamination or defects in beer products.
- Liquor liability provides coverage for serving or distribution of alcohol at events.
- Cyber liability insurance covers costs of data breaches, ransomware attacks and fines.
- Business interruption insurance covers lost revenue if operations are temporarily halted.
Introduction
As a brewery owner, it is critical to have adequate insurance coverage in place to protect your business assets, operations and employees from unexpected losses. This guide outlines the most essential types of business insurance any brewery with NAICS code 312120 should strongly consider.
General Liability Insurance
“General liability insurance offers important protection for breweries against risks involved in their operations and serving alcohol. It can help cover costs of lawsuits, damages and legal fees in case of incidents involving customers or third parties.”
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Based on industry data and averages, the estimated annual pricing for general liability insurance for breweries is $5,000-$7,000. This pricing is derived from considering factors like revenues, number of employees, location risks, claims history if any, and safety measures/processes in place. The final pricing would also depend on negotiations with the insurance provider.
Estimated Pricing: $5,000-$7,000
Property Insurance
Property insurance provides key protections for brewery businesses. It covers physical property and equipment from losses, helping operations continue after covered damages. Without adequate coverage, losses could severely impact finances and long-term viability. Common types of property covered for breweries include buildings, warehouses, brewing equipment, raw materials and inventory. Coverage also helps replace lost income if property is damaged. Estimated average annual premium is $15,000-$25,000 depending on location and property values.
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Based on typical property insurance pricing factors such as building size and location, inventory value, equipment values, and prior claims history, the estimated average annual property insurance premium for breweries in NAICS code 312120 is $15,000-$25,000. Brewery property generally includes large buildings and warehouses to house brewing and packaging equipment, storage of hops, grains and finished beer inventory. Equipment can include large brew kettles, fermenters, bottling lines, refrigeration and more. Location in an area at higher risk of natural disasters could increase pricing.
Estimated Pricing: $15,000-$25,000
Commercial Auto Insurance
“Commercial auto insurance provides crucial liability and physical protection for brewery businesses that rely on vehicles to transport beer and employees. Here are some key benefits, use cases and average pricing details:
The top benefits of commercial auto insurance for breweries include liability protection in accidents, physical damage coverage for vehicles, medical payments for injured parties, and coverage for delivery vehicles, ridesharing programs, and additional insureds.
Common use cases where commercial auto insurance is essential for breweries are delivery vehicles transporting beer kegs and cans, passenger vans carrying employees between facilities, and service vehicles used for distributor and retailer meetings.
On average, the estimated annual premium for commercial auto insurance for breweries in the NAICS code 312120 industry is $2,500 per vehicle, but can range from $2,000 to $3,000 depending on number of vehicles, miles driven, liability limits, and driving records.”
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Based on industry statistics and average risks, the estimated average annual premium for commercial auto insurance for breweries with NAICS code 312120 is around $2,500 per vehicle. This estimate takes into account factors like number of vehicles, average miles driven, liability limits, and good driving records. Premiums can range from $2,000 to $3,000 depending on specific risks and coverages.
Estimated Pricing: $2,500
Workers’ Compensation Insurance
Workers’ compensation insurance is an important coverage for breweries due to the risks employees face on the job. It provides financial protection for medical expenses and lost wages if an injury occurs from tasks like lifting equipment, operating machinery, or working with sharp tools. The estimated pricing for this coverage is between $2-3 per $100 of payroll which helps businesses budget for this necessary protection. Common injuries seen in breweries that would be covered include burns, slips and falls, cuts, and injuries from operating machinery.
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Based on national average data, the estimated workers’ compensation insurance pricing for breweries is between $2-3 per $100 of payroll. This pricing is derived from considering risk factors specific to the breweries industry such as manual labor tasks, use of machinery and equipment, and risk of injuries including slips/falls as well as noise and air pollution exposures. Competition in the insurance marketplace also plays a role in influencing pricing within a typical range.
Estimated Pricing: $2-3/100 of payroll
Product Liability Insurance
Product liability insurance is an important type of coverage for breweries to have in place. It helps protect the business financially from costly lawsuits and settlements in case customers are harmed by contaminated or defective beer products. It also protects legal costs and other expenses that may arise from customer claims over issues like contaminated batches requiring recalls or injuries to underage patrons improperly served alcohol. Protecting the business allows owners to focus on brewing great beer without worrying about potential liability issues. Maintaining quality control standards is also important for breweries, and liability insurance demonstrates a commitment to customer safety. It is typically required by distributors and retailers before carrying a brewery’s products, and provides peace of mind knowing the business is protected.
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Based on typical pricing models and risk factors for breweries, the estimated average annual cost of product liability insurance would be around $8,000. This was calculated based on factors like annual sales revenue, number of employees, safety records and type of beer produced (craft or mainstream). Craft breweries tend to have higher risks due to experimental small batch brewing techniques.
Estimated Pricing: $8,000
Liquor Liability Insurance
Liquor liability insurance provides important coverage for breweries against risks and lawsuits associated with serving alcohol. It protects breweries from financial losses through claims, legal fees, medical payments, and settlements resulting from accidents or intoxication on their premises or related to their products. Some key benefits of liquor liability insurance for breweries include protecting against lawsuits if someone is injured from drinking their beer, covering legal defense costs if sued, helping maintain a positive business reputation in case of incidents, meeting contractual obligations if clients require proof of coverage, and covering medical payments for injuries on their premises. Common use cases where the insurance would apply include covering bodily injury or property damage claims from serving alcohol to patrons and protecting the business if a patron leaves while intoxicated and causes an accident. Estimated pricing is around $2-3 per barrel of beer produced, with a minimum premium of $2,000-$5,000.
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Based on industry research and rate tables, the estimated average annual pricing for liquor liability insurance for breweries with NAICS code 312120 is around $2-3 per barrel of beer produced, with a minimum premium of $2,000-$5,000. The pricing is affected by production volume, number of employees, ownership structure (corporate vs sole proprietorship), previous claims history, and policy limits. Larger established breweries producing over 50,000 barrels annually on average pay around $2.50 per barrel.
Estimated Pricing: $2-3/barrel
Business Interruption Insurance
Business interruption insurance provides protection against financial losses from unexpected events that cause a disruption to business operations and income. It covers costs like continuing payroll, rent, and loss of profits during the period required to restore business to pre-loss conditions.
Business interruption insurance is especially important for breweries as they rely on consistent production schedules. Even short closures can impact revenue from planned beer releases getting canceled. This insurance protects against such financial losses and helps breweries stay operational during interruptions outside of their control.
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Based on research, the estimated average pricing for Business Interruption Insurance for breweries is around 0.3-0.5% of the total insurable value. Assuming the total insurable value of property and equipment is $10 million, the estimated pricing would be $30,000 – $50,000 per year. This pricing was derived based on typical rates charged for this industry and accounting for factors like location, risk level, loss history, and limits of coverage.
Estimated Pricing: $30,000 – $50,000
Cyber Liability Insurance
Cyber liability insurance provides important protection for breweries to help cover costs in the event of a data breach, cyber attack or other cyberrelated incident. It can help businesses in this industry avoid financial ruin from unexpected expenses. Some key benefits of cyber liability insurance for breweries include covering legal fees, notification costs, fines and penalties, forensic investigations, loss of income, and damage to brand reputation. Common scenarios where coverage would apply involve a data breach, ransomware, business interruption, third party liability, and regulatory issues related to a cyber incident. For a typical small to medium sized craft brewery, estimated annual premiums would be around $3,000 based on factors like number of employees, revenue, security practices, and history of prior incidents.
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Based on average pricing data for cyber liability insurance for small to medium sized breweries, the estimated annual premium would be around $3,000. Premiums are usually calculated based on number of employees, annual revenue, IT security practices and history of data breaches or cyber incidents. For a typical small craft brewery in the $5-10 million annual revenue range with 50 employees, $3,000 would be a reasonable estimate.
Estimated Pricing: $3,000
Conclusion
Maintaining proper insurance protects your brewery’s financial health and allows you to focus on brewing great beer. Consult with an insurance broker to fully understand your specific risks and requirements to ensure all bases are covered. Having the right policies in place provides peace of mind for any unexpected events or claims that could disrupt operations.