The craft beverage industry is booming, and as with any business, much of that success depends on properly functioning equipment. Unfortunately, accidents do happen. If you’re a craft brewer, distiller, or winery owner, it’s vital that you include equipment breakdown coverage as part of your insurance portfolio.
When most of us consider insurance, we think about coverage protecting against fire, wind, theft, or injury to other parties due to our negligence. But what about equipment failures that can disrupt the entire operation of a business? Consider the following:
- An electrical arc disrupts the main power supply, compromising the product
- A compressor failure causes the product to spoil
- A heating boiler explodes, causing extensive building damage
- A gear in a bottling line breaks, shutting down production
The financial impact of an equipment failure can be devastating. Most traditional property insurance excludes the sudden, accidental breakdown of vital equipment. A separate policy or endorsement is required to ensure that you are properly protected.
In addition to the specialized equipment used to manufacture craft beverages, an equipment breakdown policy or endorsement can also cover common equipment such as air conditioners, air tanks, electric motors, electronic data processing equipment, fans and blowers, water heaters and more.
To learn more about our craft beverage insurance program, contact The Reis Group today.