Company insurance is intended to safeguard the financial assets of a business owner and is a vital investment for a microbrewery.
This article will discuss the primary insurance coverage for microbreweries, general liability insurance, as well as additional policies that are appropriate for this industry.
Microbrewery General Liability Insurance
Every firm, regardless of sector, has risks that should be insured. General liability insurance is the most frequent and comprehensive form of coverage that company owners purchase.
General liability insurance covers the following risks:
Physical harm
Damage to property
Medical expenses
Legal defence and decision
Personal and commercial harm
While general liability insurance is not legally needed for companies, operating without it is exceedingly dangerous. If your company is sued, you might face costs in the hundreds of thousands of dollars (or more). The only way to avoid this sort of catastrophe from destroying your organisation is to have an adequate general liability insurance coverage in place to assist pay for these losses.
Situations That A Microbrewery’s General Liability Insurance May Cover
Example 1: You’re giving a tour of your brewery to a group when one of them walks off. She stumbles and falls, fracturing her hip in the process. She requests that your company pay for her medical care. This is most likely covered by your general liability insurance coverage.
Example 2: A rival brewery is dissatisfied with your new marketing effort, saying that it has slandered them. They bring a lawsuit against your organisation. Your general liability insurance will pay for your legal expenditures as well as any possible settlement costs.
Example 3: One of your staff is delivering a stack of bottles to the front of the store when he unintentionally knocks down a client. The guy stumbles backward, landing on his head on the floor and suffering a concussion. He brings a lawsuit against your company. Your general liability insurance policy will cover the cost of your legal defence, including the cost of a settlement if one is required.
Of course, this is not an entire list of risks covered by a general liability insurance policy, and certain situations may result in a specific peril not being covered. To minimise coverage gaps, it’s always better to speak with your agent about the terms of your policy.
General Liability Insurance Cost
The typical American microbrewery pays between $500 and $1,200 per year for $1 million in general liability insurance.
The cost of your coverage will be determined by a number of variables. Among them are your:
Location
Deductible
Employees’ number
Per-occurrence restriction
The overall aggregate limit
You may be able to get general liability insurance at a lower cost if you buy it as part of a business owner’s policy (BOP) rather than as a separate policy. A business interruption policy (BOP) is a more complete option that covers numerous types of coverage, such as business interruption and property insurance.
Other Types of Coverage Required by Microbreweries
While general liability insurance is the most crucial, there are various different types of coverage to be aware of. Other forms of insurance that all microbreweries should have are as follows:
Insurance for Workers’ Compensation
Workers’ compensation insurance is required in most states for firms with employees. If an employee is injured while conducting work-related tasks, your coverage will cover the cost of their medical care. It will also compensate part of the employee’s missed income if they are unable to work while healing.
Insurance for Product Liability
You work hard to ensure that your clients use your goods appropriately, but you can’t guarantee it. Product liability insurance is intended to protect your company against liabilities resulting from your goods. For example, if a consumer files a lawsuit alleging that your beer caused him or her harm or sickness, your coverage will cover your legal bills. It will also cover the cost of a settlement if one is necessary.
Insurance for Commercial Property
The equipment and materials you’ve gathered to run your microbrewery were expensive, and replacing them would be pricey if you lost them in an unforeseen occurrence like a fire. However, if you have business property insurance, you may make a claim with your insurer and get financial assistance for replacement expenses if your loss was caused by a covered occurrence.
Coverage Options Available to Microbreweries
In addition to the insurance listed above, your microbrewery may need other forms of coverage based on specific features of your business. Some of them may not apply to you, so be sure to ask your agent whether policies are appropriate for your company.
Umbrella Insurance for Businesses
An umbrella policy is intended to cover your company when the limitations of your general liability insurance are surpassed, such as if you lose a significant case. If the limitations of your general liability insurance are surpassed, the umbrella policy will kick in and pay until the policy’s limits are met. You may avoid having to pay the remaining damages out of pocket this way.
Additional Security Measures for Your Company
Although investing in company insurance is simple (and necessary), it should not be your first line of defence. Yes, insurance will reimburse your company for cash losses incurred as a result of an occurrence, but it is much preferable to avoid losses altogether.
With this in mind, here are a few steps you can take to better secure your company:
Make use of legally binding contracts and other business agreements. (We provide free templates for several of the most often used legal forms.)
To safeguard your personal assets, form a limited liability company (LLC) or a corporation. (To discover how to incorporate an LLC or company in your state, see our step-by-step tutorials.)
Keep your company licences up to date.
Streamline the internal procedures of your company. This will eliminate unneeded variables from routine activities and establish a secure, consistent environment in which to do business.
If your company is an LLC, you should check into LLC insurance.