Making beer at home has become an extremely popular hobby. In fact, according to the American Homebrewers Association, an estimated 1.2 million people in the U.S. are engaged in making beer at home.
That makes owning a brewing supply store an exciting way to make a living. If you own a brewing supply store, you likely offer a wide range of products for beginners and expert home brewers alike.
As a small business owner, you need to protect your investment in your brewing supply store with a comprehensive set of business insurance policies that are tailored to the unique risks you face.
An independent insurance agent in your city can help you find the customized, affordable brewing supply store insurance that fits your needs and budget.
Why Do I Need Brewing Supply Store Insurance?
You need brewing supply store insurance to protect your assets when something unexpected happens. Most retail establishments, including brewing supply stores, face the risk of having their business property damaged or destroyed. Another major threat: being sued by a customer or someone else because of a negligent act.
Property losses come in a variety of ways, from shoplifting and employee crime to smoke, fire, severe weather, equipment problems, and more.
All of these can create a mountain of repair costs and even render you unable to open your doors while you replace inventory, rebuild a damaged storefront, or wait for equipment to be fixed.
Customer injuries in your store or as a result of your products are also a concern. Something as simple as a customer slipping on a wet floor while shopping can quickly spiral out of control.
You can always expect to pay the related medical expenses for anyone who is injured in your store. What’s more, simple slip and fall cases often lead to lawsuits, and you’ll need a way to pay for your legal expenses and any payouts to the injured party.
Brewing supply store insurance helps you in situations like these, and many more, that might otherwise force you out of business. It could mean the difference between riding out an inconvenience and closing your doors for good.
What Does Brewing Supply Store Insurance Cover?
You’ll need both property insurance and liability insurance to cover your brewing supply store.
Property Coverage for Brewing Supply Stores
Unexpected events such as fires, natural disasters, floods, and extreme weather events can happen at any time, and they can quickly cause massive damage to your building, your inventory, your fixtures, computers, office files, and more.
Commercial property insurance covers the costs of repairing or replacing damaged or destroyed physical assets. This coverage is essential to securing your ability to operate in the face of disaster.
If your brewing supply store sustains physical damage due to a covered event, you’ll likely also face a loss of income if the damage causes you to close while you make repairs, rebuild your store, and replace damaged or destroyed inventory.
Business interruption insurance complements your brewing supply store property coverage. It offers income protection if your business is unable to operate because of damage caused by some type of covered disruption. It also pays for certain ongoing fixed expenses during the rebuilding period. This includes things like rent, employee salaries, relocation fees, and more.
If you brew and serve a selection of beers on-site for customers to sample, you’ll need some additional property coverage.
Equipment breakdown coverage could be essential for your brewing supply store if you engage in actual brewing of beer on-site. Brewing machinery is very expensive and if it breaks, it can take months to repair or replace.
Equipment breakdown coverage pays for costs associated with sudden and accidental breakdown of machinery and equipment. It covers the costs to repair or replace the equipment and any other property that is damaged by the broken equipment, and it reimburses you for related business interruption costs.
In addition to brewing equipment, it can also be useful to cover cash registers or other machines that are essential for your operations.
You likely store and sell a variety of barley, hops, yeast, and other essential brewing ingredients. If these ingredients become contaminated or are spoiled, you’ll have to dispose of them and take a financial loss.
Contamination and spoilage coverage pays for certain losses if your inventory is spoiled or contaminated due to refrigeration problems, utility interruptions, or some other type of foreign substance.
Liability Coverage for Brewing Supply Stores
Customers, vendors, and members of the general public visit your brewing supply store during every business day. Any one of these individuals can get injured on your premises at any time. Slips, trips, falls, and other types of injuries are common in retail settings.
And while you might think that a customer suffering a minor injury in your store isn’t a big deal, don’t be fooled. Imagine a customer cuts her arm on a sharp-edged store fixture. What seemed like a minor cut could become infected and lead to serious, long-term medical expenses and life-altering consequences for the injured party.
Medical bills and other related expenses are a lot to cover for a small business. And they’re just the tip of the iceberg if you are sued in such a situation. Attorney fees, court costs, and court-ordered settlements or judgments can easily bankrupt you.
That’s where your commercial general liability insurance comes in. It offers broad coverage for all kinds of liability claims and pays for expenses for the injured party as well as your legal expenses and settlements or judgments if you are sued.
Remember that if you serve any beer on your premises, you need to acquire all of the appropriate licenses from your municipality. What’s more, you’ll need liquor liability coverage. It is required for any establishment that sells, services, or furnishes alcoholic beverages.
It pays for instances of property damage and bodily injury that result from selling or serving alcohol, even if the impaired person did not drink the beverage on your premises.
Other Brewing Supply Store Insurance to Consider
Aside from major property and liability risks, brewing supply stores likely need several other insurance policies to protect them from financial harm and unexpected events. Talk to your independent insurance agent about your need for the following:
- Commercial auto insurance protects any business-owned vehicles or trucks. In addition, if employees drive personal vehicles for business use, you need hired and non-owned auto liability insurance.
- Crime coverage pays for loss of inventory due to theft of merchandise from shoplifting and even for loss of money and merchandise stolen by employees.
- Workers’ compensation insurance is required for almost every business that has employees. It compensates employees who are injured on the job by paying for medical expenses and lost wages related to their injury. Your employees can injure their backs while unloading shipments, suffer from repetitive motion injuries, and more. This coverage ensures their expenses will be covered in these cases and prevents them from suing you for additional damages.
- Cyber liability insurance protects your brewing supply store if you are the victim of a cyber breach. If your computer network or website is hacked and confidential customer or vendor information is exposed, the damage to your reputation and bottom line can be insurmountable.
- Employment practices liability coverage protects you if a current or former employee sues you for discriminatory employment practices.
- Commercial umbrella insurance provides an important safety net for cases when a claim exceeds the coverage limit on your general liability policy. If you were hit with an extremely costly lawsuit, this policy would kick in when the coverage on your general liability policy was exhausted.
Why Do Brewing Supply Stores Need Product Liability Insurance?
Brewing supply stores sell all kinds of products to the general public, from starter kits for new brewers to more complex equipment for the home brewing expert. You also probably sell a variety of barley, hops, yeast, and other ingredients to satisfy the unique tastes of your diverse group of customers.
You likely purchase your inventory from a variety of suppliers and manufacturers, some of whom may even be overseas in order to enable your customers to brew authentic, regional beers.
You expect a certain level of quality from your suppliers, but you can’t guarantee that there’ll never be a serious problem with an ingredient or with a machine or another product that you sell.
You may not realize that you do not need to manufacture a product to be considered liable if a product causes some type of property damage, illness, or injury to a customer or bystander.
If any product that you sell is faulty and leads to an injury or death, your business could be sued for negligence. Imagine you sell an ingredient that is unknowingly tainted or toxic. If a customer purchases it, uses it to brew beer and becomes ill, you are just as likely to be held responsible for the injury or illness as your supplier.
Product liability insurance covers your financial responsibility for losses or injuries to a user, buyer, or bystander caused by a defect or malfunction of a product purchased in your store.
If you are sued in such a case, the resulting payouts for medical costs, compensatory damages, economic damage, attorney fees, court costs, and even punitive damages can be insurmountable for a small business.
How Much Does Brewing Supply Store Insurance Cost?
The size of your business and the types of policies you need to cover your unique risks are the biggest predictors of how much your business insurance will cost. Several variables that are unique to your business help determine how risky you are to insure and consequently how costly your insurance will be.
To determine the types and amounts of coverage that you need—which determine your cost—your insurance agent will evaluate several factors, such as:
- Number of employees
- Size and location of your store
- Amount and value of your inventory
- Whether or not you own your building
Find and Compare Quotes
An independent agent can work with you one-on-one to determine the types and amounts of coverage you need. Your agent can get quotes from multiple insurance companies so you can evaluate the cost and coverage options and make the best choice.
Benefits of an Independent Agent
Our agents simplify the search process for finding the right brewing supply store insurance. They’ll walk you through the handpicked policy options and explain the details.
Most importantly, they’ll be there for you when claim time comes. They know the ins and outs of the process and will make sure your claim is handled appropriately.
The Lowdown on Online Quotes
Online quotes can be tempting. They are fast and easy to get—but are they accurate? And are you getting quotes for the right coverage? For business owners, choosing speed over accuracy can cost you.
Online quotes can’t and don’t see the whole picture. They can omit important coverage that will leave you devastated if something unexpected happens. And they can leave out cost saving opportunities that an agent can help you take advantage of.
Instead of getting an online quote, find an independent insurance agent now, and get one-on-one consultation and affordable options for the best coverage for your unique needs.
TrustedChoice.com Article | Reviewed by Paul Martin
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