The craft brewing and distillery industry has been rapidly growing throughout Canada in the last 15 years. Currently, 94% of breweries in Canada produce less than 15,000 hectolitres of beer, which classifies them as microbreweries. This journey of growth for the industry has brought on risks that are as varied as the types of beer you offer. As a brewery business, becoming aware of the risks faced by your industry can help you establish the pathway to creating a secure and operational company for years to come.
5 Risks Currently Faced by Craft Breweries and Micro Distilleries
Inventory Loss
As a microbrewer, your inventory is extremely valuable. The beer you brew is your brand, and it keeps your customers coming back. Therefore, keeping it safe should be a top priority. You can do this by investing in proper security measures including, alarms, cameras, and sprinkler systems, to reduce the chance of fire, theft and other damage. Your Commercial Property policy can also help you recover financially if your inventory is damaged by a covered loss.
Equipment and Machinery Breakdown
The use of machines and equipment, such as steam boilers, mills, cooler rooms and grain hoppers are essential to running any type of brewery. When a machine or piece of your equipment breaks, it can mean money down the drain. It can also cause disruptions in your brewing schedule. Besides taking proper care and inspection of your equipment, it is important to include Boiler and Machinery as well as Equipment Breakdown as part of your commercial insurance program.
Product Recall
Even with the most thorough checklists and processes in place, mistakes can still happen during your beer production. This can occur in the form of incorrect labelling or contamination to one of your beers. It is important to have procedures in place to efficiently manage a product recall, including pulling products from store shelves and notifying your suppliers and customers. Product Recall insurance can help manage the costs involved in a recall in the event that it happens to your brewery.
Failure to Follow Safety Procedures
Slips, falls, burns and incorrect use of personal protective gear are just some of the safety risks that can be present within your brewery. Regularly training your employees on safety best practices and developing a safety checklist will help your staff understand the risks involved in your daily operations. These procedures will protect both your employees and your customers. Correct measures, proper cleaning, and maintenance, not just to machines but all areas of your facility, will reduce the likelihood of accidents. Our team of insurance and risk management professionals can guide you through these processes to reduce your risks and set you up for success.
Liquor Liability
If your brewery includes a taproom, you have a responsibility to ensure your customers consume alcohol safely and not in excess on your premises. You may be held liable if someone is over-served by your establishment and causes damage or injury to themselves or their counterparts. For this reason, it is necessary to include Liquor Liability as part of your overall insurance program.
It is estimated that four times as many safety violations happen at micro and craft breweries compared to their larger counterpart. As a microbrewery owner, you need to be aware of the risks faced throughout this industry. While we discussed some common risks faced within breweries, it is also notable to mention the microbrewery business is not immune to some of the more common hazards amongst business owners, such as fires, floods, windstorms, and snowstorms.
With the knowledge and implementation of insurance and risk management techniques, your business can flourish, so you can focus on what you love most about your microbrewery. Having the right insurance in place also means less down time and support for recovering from claims that can hurt your business financially.
Whether your brewery is located in Alberta, British Columbia, Ontario, or another province in Canada, at Fuse Insurance, we offer high-quality coverage for the microbrewery industry. The brokers at Fuse Insurance understand the Canadian craft brewery and distillery market and can help you acquire the right coverage for your business, no matter how small or large. To learn more about the insurance process, contact us at 1-866-387-FUSE (3873). If you’re ready to get started on your quote today, fill out our quick and easy online form.