Breweries have been flourishing in Massachusetts, with 26 new businesses being established in 2018 and a total of 178 across the commonwealth. All of these businesses require specific insurance coverages to insure they’re protected from potential disaster. In fact, they tend to demand more than the average business due to the number of risks involved in the production of alcohol. If you’re looking to join the flourishing brewing industry, we’ve provided a list of recommended coverages that will get you started in the right direction.
General Business Insurance Coverages
Every company is legally required to purchase specific insurance packages that ensure the protection of the business’s assets as well as the employees. The listed coverages below are required before the company can officially begin to hire and operate.
Commercial Liability
This insurance ensures several aspects of a company like damage to property, bodily injuries, reputation harm and medical payment to those injured on the job. Breweries consist of many expensive pieces of equipment which run the risk of being damaged and will need constant repair. An employee operating heavy machinery is always a liability as well.
Business Interruption
An essential coverage in the event of the equipment or building being damaged and operations can no longer take place. Once brewery equipment is rendered useless, it can take up to several months to get replacements. Even if the parts are covered, you’re still not generating any income in the meantime. Business interruption insurance will help pay for repairs, compensate for the lack of income, and help pay for a temporary location.
Worker’s Compensation
A required coverage in the US, worker’s compensation covers all the major damages done to employees during business hours. Specifically, this covers medical payments, temporary and permanent disability, job displacement, and death benefits. This coverage is essential for breweries as accidents are much higher than typical work environments.
Brewery Specific Insurance Coverages
When it comes to establishing a brewery, one should consider what makes a business like this unique to others. The uniqueness often comes from breweries doubling as restaurants. These businesses have different coverages than other businesses due to the selling of alcohol and food products and how these products are produced and delivered to them.
Liquor Liability
Any establishment that sells or produces alcohol faces potentials liability claims of someone drinking to the extent that injuries or property damages ensue. The business that supplied the alcohol is responsible for these accidents. Liquor liability protects these businesses from suffering financial compensation as a result of someone else’s mistake. Even if your brewery does not directly serve alcohol, beer tastings are still considered service and carry with it the same impacts of a liability claim. The best way to protect yourself from these issues is to have liquor liability, which is required in most states for each establishment.
Inland Marine Insurance
This coverage is useful for breweries when they eventually ship their product to retailers and restaurants. Transporting any type of product brings with it its own slew of issues that can arise during transit. When traveling, shipments can become damaged or lost which will lose money for both the company and clients as well. Inland marine insurance is a package that covers damages during travel as well as installation costs at a client’s premise. Coverage like this will help you avoid any loss of product and income from accidents that occur on the road.
Now that you have an idea about what sort of insurance coverages you’ll need, it’s time to visit the TJ Woods Insurance Agency to point you in the right direction. We offer several different avenues to insurance companies that will create the right insurance package to get your brewery off the ground.
