Is your Distillery at Risk? Craft Distillery Insurance

Craft Distillery Insurance. Do you have a Craft Distillery?  Is your work at risk?  Here’s how to protect your distillery!

 

Whiskey Display. Distillery Insurance

Craft Distillery Insurance. Protect your Distillery.

 

The Number of Craft Distilleries has surged in the US in the past few years. And believe it or not, insurance is a critical aspect of the success or failure of a startup distillery. They need specialized insurance, Craft Distillery Insurance, for things like tank leakage and tank collapse that a standard insurance policy does not cover!

NPR even profiled small distilleries and documented their meteoric rise. Check out this link to NPR.org which details the incredible increase in craft distilleries: http://www.npr.org/blogs/thesalt/2014/01/22/264863748/small-batch-distilleries-ride-the-craft-liquor-wave
Livingston Insurance Agency has had success in South Carolina and North Carolina with insuring start-up Craft Distillery operations. Why? We have a specialized program through Cincinnati Insurance Company with competitive coverage and pricing, and we are already well versed in assisting new ventures with their insurance needs.

To be fully protected a Craft Distillery must look out for the following coverage sections and specific coverages in their insurance policy that address exposures common to the distilling industry, such as:

Distillery Property coverages:

• selling price and market value clauses
• tank collapse
• tank leakage
• contamination and adulteration of your product
• temperature change

Distillery Liability coverages:
• blanket additional insured status for vendors/distributors
• product recall expense
• liquor liability
• special event coverage if you host or attend tours, tastings, festivals, and/or weddings.

And those are only the Property and General Liability coverages, there are broadened Crime coverages and Equipment Breakdown coverages available for distilleries as well.
Also, distilleries will have to post Distilled Spirits Bonds to the National Government and possibly the State Government even to operate.

As you can see from the brief list above, a standard General Liability and Property Policy will not provide enough protection for a Distillery to be successful. It only takes one large event to force a start-up Distillery to close its doors. You need specific Craft Distillery Insurance for your unique business.

Check out Cincinnati’s Craft Beverage Program Here and Contact Us with any questions:
http://www.cinfin.com/Businesses_N_Organizations/Specialty_Programs/Craft_Beverage.aspx

About Joe Popkowski