According to the American Homebrewers Association, Americans have a growing interest in homemade beer, as over a million people now indulge in this hobby. An important component in the development of home brewing is a brewing supply store. Here’s a look at the type of insurance coverage you need to open a brewing supply store:
The Need for Brewing Supply Store Insurance
Certain types of businesses need specific plans to make sure that various risks are covered. Many retail companies face risks of vandalism and theft even with modern security. All businesses, to some degree, are at risk of suffering from an unforeseen natural disaster. If you own or lease commercial property, you need an insurance plan to act as a safety net that protects the value of your assets. You will also need workers’ comp if you hire employees.
Extent of Coverage
When you own a brewing supply store, you need a combination of commercial property insurance, business interruption insurance, and equipment breakdown insurance. Other forms of coverage such as contamination insurance might be necessary, depending on your business.
Commercial property insurance pays for damage to your shop and its components due to perils listed in your plan. Since damage may cause your company to shut down, it helps to have business interruption insurance to pay for lost wages. Equipment breakdown coverage is necessary since the brewing equipment is expensive and can take time to repair or replace.
Liability Coverage for Brewing Supply Stores
If a visitor gets injured at your brewing supply store, you need to have appropriate coverage in place to pay their medical bills and lost wages immediately. This liability coverage is included in a commercial general liability insurance plan. If your establishment serves beer to customers, you also need liquor liability coverage, which pays for medical costs and damages when an individual is harmed by one of your intoxicated patrons.
Other Insurance Policies to Consider
A brewing supply store might need various other types of insurance, depending on how it operates. If you have a company vehicle, you will need commercial auto insurance. Many businesses are looking into cyber liability insurance due to the rise in cybercrime. You need this coverage if you store confidential information about your customers in a database.
Employment practices liability is another type of coverage that businesses purchase if they face risks of expensive employee lawsuits. This coverage pays for lawsuits involving discrimination and harassment of employees. Another type of popular coverage is commercial umbrella insurance, which allows for easy adjustment of coverage limits.
Product Liability Insurance for Brewing Supply Stores
It’s essential to carry product liability insurance if you manufacture and sell a product to the public. This coverage is necessary if your product causes injury or illness to a customer. Brewing supply stores sell barley, hops, and yeast products. Each of these ingredients can be contaminated by environmental elements, leading to illness. Your company can be sued for negligence in such cases, but product liability insurance will cover court costs, including settlements.
One of the challenges of running a brewing supply store is ensuring you have all the proper licensing and insurance in place. Be aware of the health and safety responsibilities you have if you serve alcohol at your store. Our agents at Humble & Davenport Insurance Brokers, Inc. pay attention to your business needs. Contact us today if you have further questions about how to insure a brewing supply store.