The business of beer has changed dramatically over the last couple of decades with craft brewers and microbreweries entering the market at increasing rates. In 2024, craft beer tourism alone was said to generate more than $1.4 million towards the Canadian economy. Canadian consumers are getting thirstier, and there are enough new breweries out there to meet the tastes of every type of beer connoisseur. Some microbreweries are happy to experiment with different ingredients and create unique flavours that appeal to a niche audience within their local market, while others are creating beers that attempt to take on macrobreweries with the goal of expanding across the country.
But with so many new breweries entering the market, it’s important to remember that, like any other business, owning and operating a brewery comes with unique risks. Brewery owners should be aware of these risks when they are starting out and establishing their brand, product and customer base. You will need a business insurance policy that has standard coverages for your property and vehicles, but you should also be thinking about specialized coverages that are designed to protect breweries.
What is brewery insurance?
Brewery insurance offers tailored coverage designed to safeguard brewing businesses against financial challenges arising from various risks and liabilities. When assessing your brewery’s insurance needs, it’s important to account for factors specific to your operations, location, and industry regulations.
Protecting your beer
A brewery’s reputation is based on the quality of its product. With so many new products to choose from, customers aren’t going to stick with a brand that can’t maintain consistent quality. That’s why it’s important to pay attention to quality control when it comes to brewing, bottling, and storing your product. If a batch of beer is contaminated or improperly stored, it can make your product unfit for sale.
Unfortunately, the production process can introduce risks that are out of your control. Many small brewers don’t have the capacity to store all of their beer on site and may also not have their own delivery vehicles, relying on other businesses to help store and deliver their product. If an issue arises with the temperature control in a cold storage facility or cold delivery truck, your product may be compromised. The right insurance solution will also include coverage for your beer if it spoils off of your premise.
Protecting your brand
In the event that spoiled, contaminated, or tampered beer does reach your customers and they become ill as a result of your product, you’ll have to quickly respond to the issue, which can include significant business expenses. As soon as you’re made aware of the issue, you’ll have to notify the public, issue a recall of the product, and defend your brand. This can involve hiring a public relations agency to alert the media about the recall and do damage control so that your business’s reputation isn’t tarnished.
Of course, you need good risk management and quality control practices, but microbrewers should also have insurance that is designed to help protect against these types of scenarios. Product recall coverage can cover expenses related to the cost of recalling your product. That can include the cost of notifying consumers, overtime to your employees, and the cost of transporting your goods back.
Protecting your business with insurance
Unfortunately, you can’t always control what happens to your business, even after taking all the necessary precautions. You can, however, control how prepared you are. Having the right protection in place can make a huge difference. To learn more, visit our small business insurance page today.
