Compare cheap brewery insurance quotes for free.

What is brewery insurance?

Brewery insurance is a set of policies designed specifically for craft breweries. If you run a craft brewery, you need insurance. No ifs, no buts. If you serve alcohol to customers, then at the very least, you need to have liquor liability coverage. That’s one example. General liability is another coverage that you’ll likely need without exceptions – again, to ensure you are protected should a third party (such as a customer) get injured inside your brewery.

There are, of course, other coverages you should consider, including one for your commercial property (the brewery itself) as well as protection in the event of spoiled batches or product contamination. Most coverages may seem extraneous – until you realize just how prevalent some of these incidents can be. After all, breweries file claims all the time. Just because certain incidents haven’t impacted you yet doesn’t mean they won’t down the road.

The smart choice is to be prepared for anything. Within budget, of course.

What brewery insurance includes

Brewery insurance typically encompasses several key components. Some of the key ones include the following:

• General liability: This provides protection in case third-party injury and property damage. For instance, if a customer slips and falls in your tasting room, you can get coverage for medical expenses and legal fees (if the customer decides to sue you).
• Commercial property: This covers damage to your brewery's physical assets, including buildings, brewing equipment and inventory. Whether it's due to a fire, vandalism or natural disaster, property insurance ensures you're not left high and dry.

Recommended add-ons for brewery insurance coverage

While standard brewery insurance offers robust protection, there are several add-ons to consider for comprehensive coverage, including these.

• Equipment breakdown: Since breweries rely heavily on specialized equipment, such as fermenters, kettles and refrigeration units, there is a high chance of equipment failure. If that were to happen, this would cover the costs of repairs or replacements, minimizing downtime and maintaining production.
• Business interruption: Provides coverage for lost income if your brewery has to temporarily close temporarily due to a covered event, such as fire, theft or vandalism.
• Liquor liability: Provides coverage for claims related to the sale or serving of alcohol, such as injuries caused by intoxicated customers. If customers are not allowed to consume alcohol on your premises, then this coverage isn’t required.
• Spoilage and product recall: Should a batch of beer become contaminated or spoiled, causing it to be recalled, you can get reimbursed for your losses.

Common types of brewery insurance claims

If you’re not convinced that insurance is a requirement – or that, perhaps, certain coverages are pointless – here are some examples of the types of claims breweries file:

• Machinery breakdown: Breweries rely on complex machinery, and even minor malfunctions can lead to significant production delays and financial losses. You can end up having to have cash on hand to repair or replace the equipment to make up for your lost revenue. Insurance can cover all of that.
• Slip-and-fall accidents: With customers frequently visiting breweries for tours, tastings and events, the risk of slip-and-fall incident is higher. If a customer decides to sue you over this, you’ll need money to cover the legal fees.
• Bad batches: If your beer has to be recalled due to contamination or spoilage, you’ll not only lose money on the batch itself but the profits that batch would’ve brought you. Insurance covers it all for you.

How much does brewery insurance cost?

The cost of your insurance will depend largely on the size of your brewery. Smaller breweries should expect to pay between $1,500 and $3,000 a year, whereas bigger ones might pay between $5,000 and $10,000 a year.

Some of the factors that could impact your premiums include:

• Size and revenue: Larger breweries with higher production volumes and revenues typically face higher insurance costs.
• Location: Breweries located in areas prone to natural disasters or high crime rates may see higher premiums.
• Type of coverages: The more coverages and add-ons you choose, the higher your overall insurance cost will be.
• Age and condition of your brewery: Depending on the condition of your buildings and equipment, your rates may be higher or lower. The older the equipment, for instance, the more likely it is to malfunction and require repairs (thus, leading to a claim).
• Claims history: The more claims your brewery has filed in the past, the more claims it is likely to file in the future. If you want to lower your rates, try to develop ways of reducing the number of claims you make. For example, if you have a lot of old equipment that breaks down often, consider investing in new equipment to avoid those breakdowns.

We recommend talking to a broker or getting a quote through a comparison site like LowestRates.ca, where you can look up rates in just a few minutes for free.

How to get the cheapest brewery insurance rates?

Securing affordable brewery insurance requires a strategic approach. With that in mind consider these tactics:

• Shop around: Compare quotes from multiple insurance providers to find the best rates and coverages. You can get a free quote from a top insurance provider here on LowestRates.ca and compare it to what other providers have to offer.
• Reduce your claims: This includes implementing safety protocols, regular maintenance of equipment, and employee training programs.
• Bundle policies: Many insurers offer discounts for combining general liability, property and other coverages into a single package. This not only saves money but also simplifies managing your insurance.
• Increase deductibles: Higher deductibles can lower your insurance premiums, but ensure you have the financial reserves to cover the deductible amount in case of a claim.

Brewery insurance in Canada: What you need to know

Brewery insurance requirements in Canada vary by province, but there are some key considerations for all Canadian craft brewers. Understanding local regulations and industry standards is essential for compliance and protection.

In Canada, breweries must adhere to strict health and safety regulations, which can impact insurance coverage. Ensuring your brewery meets these standards can help you secure better insurance rates and reduce the risk of claims.

Additionally, Canadian breweries should be aware of the unique risks posed by the country's climate. Harsh winters and extreme weather conditions can lead to property damage and business interruptions. Ensure your insurance coverage accounts for these environmental factors.