Arizona is currently home to more than 120 craft breweries. These breweries produce about 180,000 barrels of beer a year. If you are the owner of a microbrewery in this state, you can protect the investment you have made in your business by purchasing the right brewery insurance products.
When you are looking for comprehensive, yet affordable coverage for your brewery, a local independent agent can help. These experienced professionals can explain your various options and help you find the best policies to meet your specific coverage needs. Find an insurance agent near you to get started.
What Is Brewery Insurance?
Brewery insurance is designed to offer protection against most of the risks you are likely to face as a microbrewery owner in Arizona. It can cover all aspects of your business operations including production, distribution, and consumption.
How Much Does Brewery Insurance Cost in Arizona?
The cost of brewery insurance in Arizona can vary from one microbrewery to the next. Here are factors that can influence your costs.
- The size of your brewery and its expected annual revenues
- The number of workers you employ
- The age and quality of your equipment and machinery
- Whether or not your business serves food and beverages on premises
- Your brewery’s production safety plan
- Your brewery’s claims history and safety record
To find out how much brewery insurance will cost for your particular business, you can contact a few competing insurance providers to request customized quotes, or you can ask a local independent insurance agent to do this for you.
What Does a Business Owners Policy Cover?
Owners of small craft breweries may find that their most economical option is to purchase a business owners policy (BOP) and to add on a few insurance products as needed.
A typical BOP will provide the following types of coverage.
- General liability insurance: This is designed to cover court costs, legal fees, and damages if your brewery is sued for a covered event. General liability insurance includes:
- Premises liability insurance: This can provide coverage if a customer is injured in an accident on your business property.
- Product liability insurance: This can cover your business if a customer is injured or sickened due to a defect in a product your brewery produces or sells.
- Advertising liability: This can cover against accusations of illegal marking practices like deceptive pricing, false advertising, and copyright infringement.
- Coverage against libel or slander
- Commercial property insurance: This can cover the cost to rebuild, repair, or replace business property that has been lost or damaged due to a covered event like a severe storm or an accidental fire.
- Business interruption insurance: If your brewery is forced to close down for an extended time due to damage caused by a covered event like a drought, fire, or severe storm, this insurance can provide a continuation of income until it is able to resume normal operations.
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What Additional Liability Coverage Can Help your Arizona Brewery?
General liability insurance covers against many of the risks your brewery may be exposed to, but it doesn’t cover them all. You may therefore need to add the following products for your business to be properly insured.
- Liquor liability insurance: In Arizona, this is required for businesses that sell or serve alcohol. It can protect your business if an intoxicated patron goes on to cause injuries or property damage to another and the injured party names your brewery in a subsequent liability lawsuit.
- Employment practices liability insurance: This can cover your brewery if it is accused of engaging in illegal employment practices such as harassment, discrimination, and wrongful termination.
- Cyber liability insurance: This can cover your brewery's financial obligations to affected individuals if hackers break into your company’s computer system and steal your customers' or employees' personal or financial data.
- Commercial vehicle liability insurance: This is required if your business owns and operates vehicles, such as trucks used for distribution of products. It can cover your brewery’s increase liability costs if one of your drivers causes a collision.
- Product recall insurance: While not actually a liability insurance product, this is a good addendum to the product liability insurance included in your BOP. If there is a problem with the beer that you are distributing and it must be recalled, this insurance can cover costs related to the following.
- Product disposal
It is important to ensure that your business is appropriately covered against all of its liability exposures.
What Additional Property Coverage Can Help Your Arizona Microbrewery?
The commercial property insurance included in your BOP provides a lot of coverage, but it does not cover everything. You may therefore want to consider adding the following.
- Equipment breakdown insurance: This can cover your business if your well-maintained equipment or machinery malfunctions due to problems like power surges, mechanical breakdowns, or even employee errors. It can cover repair or replacement costs, replace lost income, and compensate for spoiled inventory.
- Inland marine insurance: This can cover your beer and other products while they are being transported over land to various destinations for storage or distribution.
- Flood insurance: While largely an arid state, Arizona is prone to flooding during the monsoon season. However, commercial property insurance does not cover flood damage. Fortunately, you can purchase an affordable commercial flood insurance policy through the NFIP.
- Earthquake insurance: Though the risk is not as high as it is in neighboring California, earthquakes do sometimes cause damage to properties in Arizona. Supplementing your commercial property insurance with earthquake insurance may therefore be beneficial.
Having the right property insurance products can ensure that if disaster strikes, your brewery’s valuable property will be fully covered.
Is Workers’ Compensation Insurance Required for Breweries in Arizona?
In Arizona, any business that has at least one employee is required to carry workers’ compensation insurance. This includes full-time workers, part-time workers, minors, and family members.
Workers’ compensation coverage protects your employees from financial losses related to workplace injuries while also shielding your business from potential liability lawsuits.
This insurance can cover costs related to necessary medical treatment, disability pay, and other expenses that your employees may incur if they are injured on the job.
Why Work with an Independent Insurance Agent in Arizona?
The many options and policy types available to you make it possible to fully customize your insurance policy package to meet your brewery’s specific coverage needs. Local independent insurance agents can help you navigate through your many choices so that you can make informed decisions.
Your agent can save you time and money by working with several different insurance companies to find you the best policies at the most competitive rates. Find an insurance agent near you to learn more and you can soon be comparing a selection of customized brewery insurance quotes.
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