As a winery or vineyard owner, you know that there is more going into your final product than the grapes. You are committed to the best practices and thus know a little about business management, risk management, staffing, marketing, viticulture, and oenology. You also know that there are special risks within your agribusiness that are not present in other industries.
That is why a simple crop insurance won’t do. You need something better. You need specialized winery insurance that is tailored to your business.
What Is Winery Insurance?
First, let’s explain the nature of winery insurance. It is a type of insurance that covers the commercial and agricultural components of your business, as well as businesses that need special coverage, such as custom crush facilities, farm vineyards and orchards, bonded wineries, and even vineyard/winery owner housing and personal liabilities.
Common Risk Wineries Face
Vineyards and wineries are complicated businesses, because you have to blend any number of industries to be successful. Plus, there are number of risks and a chance of little reward due to unforeseen circumstances. You probably take on many roles while running you business—marketer, farmer, CEO—yet find yourself overlooking certain things.
Winery insurance can protect you from any financial loss that comes fixed to damaged property, lawsuits, transportation problems, wine leakage, liquor liability and any other problem that could potential harm your business.
Even the smallest and newest wineries can benefit from winery insurance. The common risks are always lurking, after all.
Here are some risks to keep in mind:
- A guest at your winery or vineyard or at a hosted event slips and falls or gets injured
- Grapes are damaged by inclement weather
- Products are crushed in transit
- A guest destroys equipment, wine, or your crop
- Spills, leaks, or accidental mixing destroys the wine
- Insecticides used on your crops drift onto neighboring properties
- Product recalls
- Contamination
- Insect infestation, plant diseases, and fire
- Agricultural and wine-making equipment malfunction and breakdown
Even wine that is sitting in a cellar, aging peacefully, is at risk of theft, vandalism, fire, leaks and spills, refrigeration outages, fire, and even logistical problems that prevent transportation to a buyer.
That is why you need to insurance every piece of your business.
Potential Lines of Insurance for Wineries
There are a number of ways to insure your winery. Some may or may not apply to you. That is why, to fully protect your winery, you can get a fully customized policy that includes things like property, liability, liquor liability, crime, and more. Be sure to reach out to us and tell us what you need. We will be able to come up with ideas for coverage that works for you and your winery.
Let’s have a look at some ways to cover your winery:
- Wine Products
- Wine Contamination
- Leakage of Wine
- Business Property & Equipment
- Tanks & Barrels
- Specialized Wine Valuation
- Equipment Breakdown
- Farm Buildings
- Transit Coverage
- Estate Vineyard Dwellings
- Cyber Risks
- Product Withdrawal Expense
- Commercial Auto
Next, let’s look at common liabilities:
- General Liability
- Excess Liability
- Employment Practices Liability
- Liquor Liability
- Personal Liability
There are a couple of insurance coverage types that we want to discuss in greater detail.
General Liability Insurance for Wineries
When you choose a general liability insurance, you receive broad protection against things like third-party bodily injury or property damage claims. This means that, if a guest falls and gets hurt during a wine tasting tour, for example, your general liability insurance covers the cost of their medical expenses, as well as any court costs, settlements, and attorney fees.
Liquor Liability Coverage
If your winery doubles as an establishment that sells or serves alcohol, then you will liquor liability insurance. This covers any injury or property damage that may result from the serving and selling of alcohol.
Equipment Breakdown Coverage
An agribusiness such as a winery means you have a broad array of machinery and technology at work. Even with proper maintenance, your equipment can malfunction and become inoperable. That is why equipment breakdown coverage is a smart choice. Any costs associated with accidental or sudden breakdown will be covered, whether that means you need a simple repair or a total replacement.
Product Withdrawal Insurance
Sometimes, you need to recall a product. It could be because the labeling is incorrect or you found out the wine was contaminated or any other kind of hazard. Product withdrawal insurance covers the cost of recalling your product. Additional coverage is available to assist with the expenses from disposing of defective products, announcement costs, employee overtime, and shipping and handling.
Final Thoughts on Winery Insurance
Now that you know of all the things that could go wrong at your winery or vineyard or with your product, you should also understand the importance of getting insured. Without insurance, even the slightest mistake can cost you thousands—an expense that you may never recover from. That is why you need highly tailored coverage to shield your winery from mishaps.
We can help! Whether it is accidental trips or damages from severe weather, we have insurance policies that cover your business completely. Get in touch to see how our agents can help by filling out the contact form.
