Commercial breweries are being found all over the United States. They are located in small towns and busy metro districts. While the craft beer industry continues to grow, so does the need for brewing companies to secure sufficient insurance protection. So much is happening at a brewery that owners need to make certain that their commercial property, product, and liability interests are being looked after and guarded accurately.
By securing a business owners policy (known in the insurance world as a BOP), multiple types of coverage can be bundled together under an insurance policy that meets the needs and requirements of a brewery. For instance, a BOP can include general liability and property insurance.
Commercial Property Protection
Brewing Companies that also own the site and building of the brewing operations and distribution benefit greatly from having a BOP in place. Should a fire, natural disaster, or act of vandalism occur to the brick and mortar of one's business structure, a BOP makes sure that the building can be restored to its original state.
Commercial property coverage applies to the exterior and interior of a building, as well as built-in mechanical systems. Broken windows from a storm and hail damage to a roof would typically be covered within a BOP. It is important to have adequate coverage amounts in place for a commercial property that is brewing beer and serving customers. Damage from severe storms has the potential to set businesses back quite a bit profit-wise, while also damaging the atmosphere and curb appeal of a brewery's charm and atmosphere.
Another important property question that needs to be addressed when considering insurance is the topic of the brewing equipment. With many of these pieces of equipment being large, heavy, and at times permanently fixed to the building structure, the items need to be adequately covered. Fermentation tanks, cooling systems, boilers, storage tanks, refrigeration units, kettles, filters, machinery for bottling/canning, and more are all integral parts of a brewing business and can find protection under a well-written BOP.
The production of the craft beer and the beer itself are other line items that get attention and protection in a BOP. Many commercial insurance policies have coverage options that apply to the interruption of business. If production must cease due to a shortage in hops, wheat, or barley from a supplier, the brewing company can feel secure in having protection and not lose out on potential income.
Just as the brewing company's building is protected in the event of a fire or damaging thunderstorm, so is the flow of business. If operations should have to stop due to a natural disaster or severe weather event, the brewery's loss would be covered under a BOP.
Specialized coverage offers are often available within the commercial bundle package of a BOP. These types of specialized coverage can and will address issues that might arise due to: product recall, spoilage of perishable goods, and/or contract interruption with a retailer supplier or vendor.
Every commercial business has a risk of liability associated with it when it comes to day to day operations. A brewery is no different, especially since alcoholic beverages are being created, served, and distributed. In addition to protecting a structure and property, a BOP will also safeguard a commercial brewery's liability risk.
A lawsuit has the potential to happen if a patron slips and falls in a tasting room or if a customer drops a pint glass and cuts his or her hand. Situations that seem harmless and completely accidental can lead to a liability crises for a brewery owner. Therefore having a BOP in place with an adequate limit of liability coverage will keep the business and the owner(s) protected and safe. This is important in the wake of a lawsuit or unforeseen liability situation resulting in high medical expenses for a third-party person.
A brewing company's beer, building, and liability can all be safeguarded with a BOP.
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