Breweries combine manufacturing, hospitality, retail, and distribution operations under one roof. From brewing and fermentation to taproom service, events, deliveries, and product distribution, brewery owners face a wide range of risks that can affect their property, employees, customers, equipment, inventory, and financial stability.
At Brock-Norton Insurance Agency, we help breweries develop customized insurance programs designed around the way their business actually operates. Whether you operate a small craft brewery, a production brewery, a taproom-focused business, or a brewery with distribution operations, we can help you identify your exposures and explore insurance solutions designed to protect your business.
At Brock-Norton Insurance Agency, we help breweries develop customized insurance programs designed around the way their business actually operates. Whether you operate a small craft brewery, a production brewery, a taproom-focused business, or a brewery with distribution operations, we can help you identify your exposures and explore insurance solutions designed to protect your business.
What Is Brewery Insurance?
Brewery insurance is a customized combination of commercial insurance coverages designed to address the unique risks associated with brewing, packaging, storing, serving, selling, and distributing beer.
Unlike many traditional businesses, breweries can have several different operations happening simultaneously. A brewery may manufacture a consumable product, operate a retail taproom, host private events, employ production and service staff, maintain expensive specialized equipment, and distribute products to restaurants, retailers, or other businesses.
The right insurance program can help protect your brewery against financial losses arising from accidents, property damage, equipment failures, employee injuries, lawsuits, product-related claims, business interruptions, and other unexpected events.
Every brewery is different. Your insurance needs may depend on factors such as:
At Brock-Norton Insurance Agency, we take the time to understand your operation so your insurance program can be designed around your specific business.
Unlike many traditional businesses, breweries can have several different operations happening simultaneously. A brewery may manufacture a consumable product, operate a retail taproom, host private events, employ production and service staff, maintain expensive specialized equipment, and distribute products to restaurants, retailers, or other businesses.
The right insurance program can help protect your brewery against financial losses arising from accidents, property damage, equipment failures, employee injuries, lawsuits, product-related claims, business interruptions, and other unexpected events.
Every brewery is different. Your insurance needs may depend on factors such as:
- Brewery size and production volume
- Whether you operate a taproom
- Alcohol sales and service
- Distribution operations
- Delivery vehicles
- Food service or kitchen operations
- Number of employees
- Building ownership or leasing
- Brewing and refrigeration equipment
- Product packaging and storage
- Special events and live entertainment
- Outdoor seating or activities
- Wholesale and retail sales
At Brock-Norton Insurance Agency, we take the time to understand your operation so your insurance program can be designed around your specific business.
Who Needs Brewery Insurance?
Insurance is important for breweries of all sizes and business models, including:
Whether you're producing a few batches a week or distributing beer throughout multiple markets, your business has exposures that should be carefully evaluated.
A brewery that only produces beer for wholesale distribution may have very different insurance needs than one that also operates a busy taproom, serves food, hosts live music, and delivers its own products.
- Craft Breweries
- Microbreweries
- Production Breweries
- Brewpubs
- Taproom Breweries
- Farm Breweries
- Breweries with Restaurants
- Breweries with Outdoor Seating
- Breweries with Event Spaces
- Breweries with Wholesale Distribution
- Breweries with Self-Distribution
- Contract Brewing Operations
- Breweries Selling Beer at Festivals and Events
Whether you're producing a few batches a week or distributing beer throughout multiple markets, your business has exposures that should be carefully evaluated.
A brewery that only produces beer for wholesale distribution may have very different insurance needs than one that also operates a busy taproom, serves food, hosts live music, and delivers its own products.
Types of Coverage You Should Consider
When it comes to protecting your brewery, having the right combination of insurance coverages is essential. Brewery operations can involve manufacturing, property, product, liquor, employee, vehicle, and business interruption exposures.
Depending on your operation, insurance considerations may include:
The appropriate combination of coverage will depend on how your brewery operates, what you own, what you sell, and how your products reach customers.
Depending on your operation, insurance considerations may include:
- General Liability Insurance
- Liquor Liability Insurance
- Commercial Property Insurance
- Business Income & Extra Expense Coverage
- Equipment Breakdown Insurance
- Product Liability Insurance
- Product Contamination & Spoilage Coverage
- Workers' Compensation Insurance
- Commercial Auto Insurance
- Inland Marine Insurance
- Umbrella Liability Insurance
- Employment Practices Liability Insurance
- Cyber Liability Insurance
- Pollution Liability Insurance
- Crime Insurance
The appropriate combination of coverage will depend on how your brewery operates, what you own, what you sell, and how your products reach customers.
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In addition to your standard underlying coverage, we can help you with complex policies specific to your needs:
General & Liquor Liability Equipment Breakdown and Property Insurance Beer Contamination Coverage Tank Leakage and Collapse Manufacturer's Selling Price on Damaged Beer Stock Workers Compensation Umbrella and Excess Liability Commercial Auto Coverage Cyber Liability Employment Practices Liability |
General Liability Insurance
General Liability Insurance is an important part of a brewery's insurance program. It can help protect your business against third-party claims involving bodily injury, property damage, and personal or advertising injury.
A brewery can have customers, vendors, delivery personnel, contractors, and employees entering and moving throughout the facility every day.
General Liability Insurance may help protect your business against claims involving:
For example, a customer could slip on a wet floor in your taproom, a visitor could be injured during a brewery tour, or your business could accidentally damage property belonging to another party.
General Liability coverage is often required by landlords, event venues, distributors, retailers, vendors, and other business partners before you can enter into certain agreements.
A brewery can have customers, vendors, delivery personnel, contractors, and employees entering and moving throughout the facility every day.
General Liability Insurance may help protect your business against claims involving:
- Customer slips and falls
- Bodily injury occurring on your premises
- Property damage caused by your operations
- Personal injury claims
- Advertising injury
- Legal defense costs
- Certain products-completed operations claims
For example, a customer could slip on a wet floor in your taproom, a visitor could be injured during a brewery tour, or your business could accidentally damage property belonging to another party.
General Liability coverage is often required by landlords, event venues, distributors, retailers, vendors, and other business partners before you can enter into certain agreements.
Liquor Liability Insurance
Breweries that serve alcohol to customers can face liability exposures that go beyond ordinary premises liability.
If your brewery operates a taproom, tasting room, brewpub, beer garden, or other area where alcohol is served, Liquor Liability Insurance should be an important consideration.
Liquor Liability coverage is designed to address certain claims arising from the service or sale of alcoholic beverages.
Potential situations can include allegations that:
Liquor Liability Insurance is separate from General Liability Insurance because alcohol-related liability presents unique exposures.
Brewery owners should also establish responsible alcohol-service practices, employee training, age-verification procedures, and policies for handling visibly intoxicated customers.
If your brewery operates a taproom, tasting room, brewpub, beer garden, or other area where alcohol is served, Liquor Liability Insurance should be an important consideration.
Liquor Liability coverage is designed to address certain claims arising from the service or sale of alcoholic beverages.
Potential situations can include allegations that:
- A customer was over-served
- An intoxicated customer injured another person
- An intoxicated customer damaged property
- An incident occurred after a customer left your establishment
- Your brewery was named in a lawsuit involving alcohol service
Liquor Liability Insurance is separate from General Liability Insurance because alcohol-related liability presents unique exposures.
Brewery owners should also establish responsible alcohol-service practices, employee training, age-verification procedures, and policies for handling visibly intoxicated customers.
Brewery Property & Equipment Insurance
Your brewery may contain hundreds of thousands of dollars in buildings, brewing equipment, refrigeration systems, tanks, furniture, inventory, and other business property.
Commercial Property Insurance can help protect the physical assets your brewery depends on to operate.
Depending on the policy, property coverage may apply to items such as:
Covered property losses can potentially result from events such as fire, theft, vandalism, wind, and other covered causes of loss.
For breweries that lease their building, it is still important to consider coverage for business personal property, equipment, tenant improvements, inventory, and other assets belonging to the business.
Commercial Property Insurance can help protect the physical assets your brewery depends on to operate.
Depending on the policy, property coverage may apply to items such as:
- Buildings
- Brewing equipment
- Fermentation tanks
- Bright tanks
- Kettles
- Refrigeration equipment
- Kegging equipment
- Canning and bottling equipment
- Furniture and fixtures
- Taproom equipment
- Computers and office equipment
- Inventory
- Raw materials
- Supplies
- Signage
Covered property losses can potentially result from events such as fire, theft, vandalism, wind, and other covered causes of loss.
For breweries that lease their building, it is still important to consider coverage for business personal property, equipment, tenant improvements, inventory, and other assets belonging to the business.
Equipment Breakdown & Spoilage
Breweries depend heavily on specialized mechanical and electrical equipment. A breakdown involving a critical piece of equipment can cause more than a repair bill—it can interrupt production and potentially ruin beer in the process.
Equipment Breakdown Insurance can provide protection for certain sudden and accidental mechanical or electrical breakdowns involving eligible equipment.
Important brewery equipment can include:
A mechanical failure can also create a secondary problem: spoiled or contaminated product.
Depending on the policy and circumstances, specialized spoilage or contamination coverage may help address losses involving beer or other inventory that becomes unusable because of a covered event.
For a brewery, protecting the equipment that keeps production running can be just as important as protecting the building itself.
Equipment Breakdown Insurance can provide protection for certain sudden and accidental mechanical or electrical breakdowns involving eligible equipment.
Important brewery equipment can include:
- Refrigeration systems
- Chillers
- Boilers
- Brewing systems
- Fermentation equipment
- Pumps
- Compressors
- Electrical equipment
- Bottling and canning systems
- Kegging systems
- Temperature-control systems
A mechanical failure can also create a secondary problem: spoiled or contaminated product.
Depending on the policy and circumstances, specialized spoilage or contamination coverage may help address losses involving beer or other inventory that becomes unusable because of a covered event.
For a brewery, protecting the equipment that keeps production running can be just as important as protecting the building itself.
Product Liability & Product Contamination
Once beer leaves your facility and reaches customers, your brewery can face product-related liability exposures.
Product Liability Insurance can help protect your business against certain claims alleging that a product you manufactured or sold caused bodily injury or property damage.
Potential brewery product concerns can include:
A product contamination event can also create significant financial consequences beyond a liability lawsuit. A brewery may have to dispose of inventory, replace products, notify customers, or temporarily interrupt production.
Depending on the policy, Product Contamination, Product Recall, and Spoilage coverage may provide additional protection for certain losses associated with contaminated or recalled products.
These exposures should be carefully evaluated based on how your brewery manufactures, packages, stores, and distributes its products.
Product Liability Insurance can help protect your business against certain claims alleging that a product you manufactured or sold caused bodily injury or property damage.
Potential brewery product concerns can include:
- Contaminated products
- Foreign materials
- Packaging defects
- Product labeling issues
- Manufacturing errors
- Product-related illness allegations
- Distribution-related claims
A product contamination event can also create significant financial consequences beyond a liability lawsuit. A brewery may have to dispose of inventory, replace products, notify customers, or temporarily interrupt production.
Depending on the policy, Product Contamination, Product Recall, and Spoilage coverage may provide additional protection for certain losses associated with contaminated or recalled products.
These exposures should be carefully evaluated based on how your brewery manufactures, packages, stores, and distributes its products.
Workers' Compensation Insurance
Breweries have a wide variety of employees performing physically demanding and sometimes hazardous tasks.
Production employees may work around hot liquids, heavy kegs, machinery, chemicals, pressurized systems, forklifts, and other equipment. Taproom employees can face different risks, including slips and falls, lifting injuries, and other workplace accidents.
Workers' Compensation Insurance can provide benefits for employees who experience covered work-related injuries or illnesses.
Depending on applicable state requirements and the circumstances of a claim, Workers' Compensation may provide benefits for:
Employers should also establish workplace safety procedures, provide appropriate training, maintain equipment, and address hazards promptly.
Workers' Compensation requirements vary by state, so brewery owners should make sure their insurance program is structured appropriately for their workforce and locations.
Production employees may work around hot liquids, heavy kegs, machinery, chemicals, pressurized systems, forklifts, and other equipment. Taproom employees can face different risks, including slips and falls, lifting injuries, and other workplace accidents.
Workers' Compensation Insurance can provide benefits for employees who experience covered work-related injuries or illnesses.
Depending on applicable state requirements and the circumstances of a claim, Workers' Compensation may provide benefits for:
- Medical expenses
- Lost wages
- Rehabilitation
- Disability benefits
- Other covered workplace injury expenses
Employers should also establish workplace safety procedures, provide appropriate training, maintain equipment, and address hazards promptly.
Workers' Compensation requirements vary by state, so brewery owners should make sure their insurance program is structured appropriately for their workforce and locations.
Commercial Auto & Distribution
Many breweries use vehicles to transport beer, kegs, supplies, equipment, and employees.
If your brewery owns vehicles or operates delivery vehicles as part of its business, Commercial Auto Insurance should be considered.
Commercial Auto coverage may address risks involving:
Commercial Auto Insurance can provide liability protection when a business vehicle is involved in an accident and may also provide physical damage protection for covered vehicles.
Breweries that distribute their own products should pay particular attention to their vehicle use, delivery territory, drivers, vehicle ownership, and the types of products and equipment being transported.
If employees use personal vehicles for brewery business, the insurance needs can be different and should be reviewed separately.
If your brewery owns vehicles or operates delivery vehicles as part of its business, Commercial Auto Insurance should be considered.
Commercial Auto coverage may address risks involving:
- Delivery vans
- Box trucks
- Pickup trucks
- Company-owned vehicles
- Beer delivery operations
- Transportation of equipment and supplies
- Business-related vehicle use
Commercial Auto Insurance can provide liability protection when a business vehicle is involved in an accident and may also provide physical damage protection for covered vehicles.
Breweries that distribute their own products should pay particular attention to their vehicle use, delivery territory, drivers, vehicle ownership, and the types of products and equipment being transported.
If employees use personal vehicles for brewery business, the insurance needs can be different and should be reviewed separately.
Business Interruption & Brewery Income Protection
A brewery doesn't have to suffer a total loss for an unexpected event to create a significant financial problem.
A fire, equipment failure, property loss, or other covered event could force your brewery to temporarily reduce or stop production. Even when sales stop, many expenses continue.
Business Income Insurance may help replace certain lost income following a covered property loss, subject to the terms, conditions, limits, and waiting periods of the policy.
Depending on the policy, coverage may help with certain:
For breweries, the financial impact of downtime can be especially significant because production schedules, fermentation cycles, inventory, distribution commitments, and customer relationships can all be affected.
Business interruption planning should be an important part of your brewery's overall risk management strategy.
A fire, equipment failure, property loss, or other covered event could force your brewery to temporarily reduce or stop production. Even when sales stop, many expenses continue.
Business Income Insurance may help replace certain lost income following a covered property loss, subject to the terms, conditions, limits, and waiting periods of the policy.
Depending on the policy, coverage may help with certain:
- Lost business income
- Continuing operating expenses
- Payroll expenses
- Temporary relocation expenses
- Extra expenses necessary to continue operations
For breweries, the financial impact of downtime can be especially significant because production schedules, fermentation cycles, inventory, distribution commitments, and customer relationships can all be affected.
Business interruption planning should be an important part of your brewery's overall risk management strategy.
Risk Management for Breweries
Preventing losses is just as important as insuring them.
Because breweries combine manufacturing, hospitality, alcohol service, and sometimes distribution, effective risk management can help reduce the likelihood and severity of claims.
Important risk management considerations may include:
Brewery owners should also regularly review their operations with their insurance professional. Changes such as adding a taproom, expanding production, purchasing new equipment, beginning distribution, hosting events, or opening another location can change your insurance needs.
Because breweries combine manufacturing, hospitality, alcohol service, and sometimes distribution, effective risk management can help reduce the likelihood and severity of claims.
Important risk management considerations may include:
- Employee safety training
- Responsible alcohol-service procedures
- Age-verification practices
- Equipment maintenance
- Refrigeration monitoring
- Proper chemical storage
- Slip-and-fall prevention
- Fire prevention
- Emergency preparedness
- Product quality-control procedures
- Inventory management
- Vehicle safety
- Driver training
- Cybersecurity practices
- Proper storage of kegs and materials
Brewery owners should also regularly review their operations with their insurance professional. Changes such as adding a taproom, expanding production, purchasing new equipment, beginning distribution, hosting events, or opening another location can change your insurance needs.
The Business Behind the Brew
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Running a brewery is about more than making great beer. Behind every pint is a business with equipment, employees, customers, inventory, property, contracts, and countless moving parts. With so much involved in keeping a brewery running, understanding and managing the risks that come with the industry is an important part of protecting what you've built.
At Brock-Norton Insurance Agency, we understand that breweries have unique insurance considerations. From the brewing process and specialized equipment to taproom operations, alcohol service, distribution, and events, we're here to help you navigate the risks that come with the business. Take a moment to watch our video and get a closer look at the world of brewing—and some of the unique considerations that make brewery businesses so special. |
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The Brewers Association creates several educational publications to be used as best practices by breweries, retailers, distributors, and beer lovers. These include manuals, guides, worksheets, templates, online training videos, and more. (C) Brewers Association Website
To read these educational publications please click the button below: |
Protecting Your Brewery as Your Business Grows
Your brewery's insurance needs can change significantly as your business grows.
You may begin with a small brewing operation and eventually add a taproom, expand production, purchase larger equipment, introduce new products, distribute to additional markets, or open another location.
As your business evolves, your insurance program should evolve with it.
Important changes to discuss with your insurance agency may include:
At Brock-Norton Insurance Agency, we understand that no two breweries operate exactly alike. As an independent insurance agency representing more than 65 insurance markets, we can compare insurance options from multiple carriers and help develop a customized insurance program based on your brewery's operations, assets, employees, and exposures.
Whether you're opening your first craft brewery, operating an established production facility, or expanding your taproom and distribution operations, we're here to help you protect the business you've worked hard to build.
You may begin with a small brewing operation and eventually add a taproom, expand production, purchase larger equipment, introduce new products, distribute to additional markets, or open another location.
As your business evolves, your insurance program should evolve with it.
Important changes to discuss with your insurance agency may include:
- Increasing production capacity
- Purchasing new brewing equipment
- Expanding or remodeling your facility
- Adding a taproom
- Adding food service
- Hiring additional employees
- Hosting larger events
- Adding outdoor seating
- Purchasing delivery vehicles
- Expanding distribution
- Selling products in new states
- Opening another brewery location
- Increasing inventory values
- Adding online sales
- Entering new contracts or vendor agreements
At Brock-Norton Insurance Agency, we understand that no two breweries operate exactly alike. As an independent insurance agency representing more than 65 insurance markets, we can compare insurance options from multiple carriers and help develop a customized insurance program based on your brewery's operations, assets, employees, and exposures.
Whether you're opening your first craft brewery, operating an established production facility, or expanding your taproom and distribution operations, we're here to help you protect the business you've worked hard to build.