When you think of brewery operations, you think of research and development, creative brews, modern equipment, appealing facilities and perhaps even great food. What savvy brewers and owners also keep top-of-mind is the right business insurance to safeguard their precious investment.
We wondered if brewery insurance was a unique niche, and spent some time chatting with Brewers of Pennsylvania Associate Member Michael Wagner, CIC, CRM, CRIS, CISC, AFIS, vice president of Blue Marsh Insurance, Inc. Here’s what we learned:
Why is brewery insurance so different and specific?
Some coverage is the same as other industries: commercial vehicles, buildings, general liability, etc. However, there are many things unique and very important for craft brewers. The key is to understand how breweries are different from let’s say a restaurant. We see a lot of breweries that are covered like a restaurant, yet breweries also need coverage for tank collapse, tank leakage and beverage contamination. Those are important and specific to the brewing industry.
What types of coverage are must-haves and may not be offered by all companies?
As noted, tank collapse, tank leakage, beverage contamination, utility services coverage and manufacturers’ selling price are very important, and some are not offered — or, more importantly, not covered — by all agents. Ask the questions before you commit.
Does the insurance change when there’s a taproom (food service) involved?
I don’t think the insurance changes, per se. However, as a certified risk manager, I see other safety concerns when you have a taproom. Things like slip and falls, responsible alcohol management programs, and fire suppression with cooking equipment, are some of the challenges, to name a few.
How about no taproom, but food truck service?
This poses different challenges. It is vital for the brewery to have the food truck provide a certificate of insurance and name the brewery as an additional insured on the food truck insurance policy. Food trucks, which will be located on the insured property, pose an increased exposure for vicarious liability (a situation in which one party is held partly responsible for the unlawful actions of a third party. The third party also carries his or her own share of the liability).
How are you saving PA Breweries up to 23 percent?
We’ve helped so many different members of the BOP improve protection on the brewery and increased the level of service that they receive, saving them barrels of cash. Several have actually saved much more than 23 percent, as we have insurance companies with better rates that are custom-tailored for breweries, wineries and distilleries.
Is the BOP 10 percent discount when using Hanover included in that?
Each customer is unique and we focus on finding the right coverage at the optimal cost for each one. For breweries that we protect with Hanover, we’re able to include a 10 percent credit for being a BOP member in good standing. Sometimes, we end up saving more with other companies too, especially for workers compensation policies. We have some very exciting news coming in fall 2020 about another special program specific to our fellow BOP members that would reward those breweries that make safety a priority for their staff.
Is there any advantage to brewery owners who acquire their personal insurance through the same company as their business insurance?
There’s not really an advantage for buying your business insurance through the same company as personal, but some companies will give additional discounts on the personal insurance if you have multiple policies, including business policies, with them. Blue Marsh Insurance handles all lines of insurance for our customers, and very often insure our business owners’ personal assets along with providing benefits and life insurance too.
How did you develop a specialty in the brewing industry?
It’s really the unexpected fusion of ingredients that made it happen. I love craft beer. We love working with people that care about their craft as much as we care about ours. So, we found a few leading insurance companies that wanted to insure breweries and also wanted to help us grow. It’s been a great partnership with them, and it allows us to bring some innovative and money-saving solutions to a growing industry. We found that most of the time, the “local” insurance guy really doesn’t understand, nor have the right solutions for brewers. So, we stepped in to help. This has allowed us to grow along with a great group of like-minded brewers.
What does it mean to be a craft brewing specialist in the insurance industry?
Just like breweries, no two insurance agencies are alike. Many are generalists. Having a specialty means understanding the business: How beer is made, marketed and sold, plus challenges of craft brewing that could keep brewers and owners up at night. We want our brewery customers to “perfect the brew while we protect the brewer.” We come alongside them and join their team, helping protect from the specific risks that face the brewing industry.
Blue Marsh Insurance, Inc., is a different kind of insurance company. One that’s built on personal relationships and a local presence. One where the customer feels more like a friend. One where the customer doesn’t feel pushed to buy insurance, but instead is advised on how to create a secure future. Blue Marsh specializes in helping customers take control of insurance decisions, understand coverage, and save money. This is done through top shelf coverage, low rates and uncommon service.
The Brewers of Pennsylvania is a nonprofit trade association that brings together leaders of Pennsylvania-based breweries in order to promote and protect the brewing industry in the state. Established in 2011, the Brewers of Pennsylvania serves the consuming public of Pennsylvania by encouraging brand diversity in the market. We believe in the nobility of brewing and hold dear the great traditions and history of Pennsylvania brewing.
All photos by Tom Davenport
