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Because of the unique type of industry you are in, your distillery could take on the attributes of many other businesses. From production and storage to transportation and customer service, the variety of angles you work in creates a need for industry-specific insurance.
The risks you face depend on whether or not you give tours of your facility, serve alcohol, or host events. If you handle your own distribution, that's another concern. Limits and policy specifications must be appropriate for your business or you could be left with exposed risks. Here are some coverage options to consider in your distillery insurance policy:
Your cooker, fermenter, and still were expensive. Replacing one of these alone could be financially devastating. Even if a piece of machinery breaks, repair costs can add up fast. Having the appropriate amount of property insurance, as well as systems breakdown coverage, could help. Similarly, if a batch of a distilled spirit is ruined, the revenue lost will be substantial. Obtaining coverage for spoilage, contamination, and product recalls may help provide financial protection.
If you serve alcohol, you need liquor liability coverage. A patron who consumes too much liquor at your establishment could leave your premises and cause property damage or bodily injury. Because you served them, you could be sued and held liable for the damage caused by the intoxicated patron. Liquor liability insurance covers defense costs and damages awarded.
Any business that uses a vehicle for company purposes needs business auto insurance. Personal auto policies do not cover business use, so even the smallest distillery that has an employee running errands or making a delivery has a business exposure that could require hired and non-owned auto insurance. If you own vehicles in the company name to distribute your product, for example, you have an even bigger exposure.
Although specialized distillery insurance is important, you cannot forget about general business insurance needs. Things like workers' compensation, cyber liability, general liability, and premises liability insurance should be obtained. Employment practice liability and crime insurance are other policies that need to be considered for distilleries in particular.
Ready to discuss your unique distillery insurance needs? Contact us to get started.