Today, more than 7,600 wineries are operating in the United States. It might seem like fun to own a winery or vineyard, but it can be a demanding business. You need to know about the growing process of the grapes and the blending of varieties to create a flavorful wine. In addition to that, the vintner has to deal with the legal and financial aspects of the wine business. If you want to protect your business, you need to find the right insurance for your winery.
Many vineyard and winery owners don’t understand the importance of winery insurance. There are many sophisticated operations needed to create a high-quality wine. With these numerous processes, problems can flare up at any point. When that happens, the winery’s production can be reduced for that particular year. Insurance can help with these issues. For example, you can purchase crop insurance to help cover the financial loss when the grapes are damaged.
Insurance will help protect your business from other risks, including:
- Spoilage of grapes due to a refrigeration breakdown
- Insecticide or pesticide damage
- In-process damage and aging wine goods
- Harvesting, supply chain, or logistical issues
- Malfunctioning winemaking and agricultural equipment
- Business interruption expenses
Even with the best plans, there are many insurance risks for your business. You want to be protected from any liability when the public explores your property or tastes the offerings from your winery.
Do I Need Liability Insurance?
For any business, you want to protect your company from legal and court costs in the event of a lawsuit. Business insurance is an essential part of any company, and there are several options for you. You want coverage in the event of a slip-and-fall accident on your property. For many winery owners, they offer on-site tasting rooms and retail operations. Insurance would protect your company from any of these accidents.
Employee and Customer Protections
With wine-tasting, vineyard tours, and other events, many customers will be on your property. When you add in alcohol, there is a chance that someone could hurt themselves, others, or your property. If someone becomes sick from food or wine from your business, you could be liable for damages. You will need insurance to protect your business from these types of incidents.
Your business also needs to be protected from issues with personnel. Employees might cause damage or vandalism. There is always a chance of workers’ compensation claims that will need to be addressed as well. Insurance can help you save the company from these unexpected incidents at your winery.
In addition to that, every business is under the threat of cybercrime. Your company’s computer network and websites might be unprotected and vulnerable to hackers. When a hacker breaches that information, your vendors’ and customers’ data may be at risk. Many businesses cannot recover from a security breach. When you have insurance, you will be covered from any legal claims that are a result of these cybercrime incidents.
Protected from Extreme Weather
In addition to customers and employees, you need to protect your business from the weather. In many places, extreme weather events can be common. Your vineyard or winery could be vulnerable to fires, floods, storms, and earthquakes. When bad weather comes to town, it can cause damage to the grapes’ growth and hurt the production of the wine. As a result of that, you can experience a significant loss of profits for your business.
Property insurance can help your business in the event of a fire. If your agricultural equipment is damaged or stolen, then insurance can help to replace those items. In some cases, your coverage might be able to replace the barrels, bottles, and wine. You will have to find a policy that will insure you against any of these calamities.
You should also consider adding business interruption insurance to your policies. In the event of a disaster, your insurance would pay for the lost income. With that insurance, you can still pay your employees and bills despite a shutdown to your business.
With wine bottled and ready for distribution, there are some other challenges. You might face the potential for additional losses. When the wine is in transit, there could be an accident that causes the vehicle to damage your supply. With a travel endorsement, your policy will extend coverage to the wine in transit. For those who store wine, you will want to examine your policy. Some companies will not cover any off-site storage, and you could have to absorb the loss of any damaged wine.
Finally, your winery might use antifungal sprays or insecticides to protect your grapes. When that happens, you could be liable for expenses if an adjoining property claims those sprays damaged their property or harmed their health. You might want to add third-party damage coverage to your policy to prevent any legal costs due to these issues.
Insurance Solutions Customized for You
If you want to address all of these risks to your business, then you will need a comprehensive policy to cover your winery and vineyard. You want insurance coverage to protect your grapes, outdoor vines, trellises, and other equipment that is vital to your wine business.
It is crucial to find an experienced insurance company that knows the intricacies of the agricultural business. A professional insurance agent will help you to find the right coverage that will meet the needs of your business. Your winery or vineyard is your heart and soul. You don’t want to lose that to an inadequate insurance policy.
Who Insures Wineries?
The Lyman Agency is here to assist you. We understand the winemaking business and want to protect your business from the unexpected. Whether you have a generational vineyard or you are an ambitious entrepreneur, we can find a policy to fit your company’s needs. The Lyman Agency will protect your business with a comprehensive insurance coverage policy.
If you are ready to learn more about comprehensive insurance coverage for your winery, please take a few minutes to fill out the contact form.