National Craft Brewery
Your craft brewery is now a national business. Your heart is still with craft beer, but you are now a serious business. Decisions are made using rational frameworks and risk is a boardroom discussion.
Risk identification, mitigation and insuring are a director’s responsibility and the potential livelihood of the business is at stake.
At this point, it is important to have an in-depth risk analysis and consultation. Long before you buy an insurance policy.
However, below is a guide to the insurances that will be on the radar for national craft brewers.
You must have
Property & Asset Insurance
This covers all the stuff you need to make beer – tanks, pumps, mash urns, electrical equipment – and includes the buildings, contents and stock* in case certain events happen.
These include fire, storms, malicious damage, explosions, earthquake, wind, and leakage of liquids, including water.
Any one of those events could be enough to stop the business. Which would be devastating.
* Including customers & supplier’s goods.
Public & Products Liability Insurance
If members of the public come onto your business premises, then you must have this. Whether it’s brewery tours, your own taproom, bar area, or suppliers coming onto the site, your business is exposed.
During daily business activities, accidents and mistakes can happen. If they cause injury, losses or damage your business is potentially liable.
Public Liability insurance protects your business for any such events, including injury to other people, or their property.
Products Liability covers you if your products injure or damage a third party. You are responsible at law – and need protection.
Workers Compensation Insurance
The moment you employ people you must have Workers Compensation Insurance. It’s compulsory and a legal requirement for anyone the legislation deems is a “worker”. It protects employers from financial costs when a worker sustains a work-related injury or disease.
Western Australia, Northern Territory, Australian Capital Territory and Tasmania are all underwritten direct by insurers. Victoria is managed by Worksafe and underwritten by insurers, and New SouthWales and Queensland are underwritten by the State Governments. We can assist you to organise this insurance for your business.
Cyber & Privacy Protection Insurance
Imagine you were hacked, and illegal content was sent to your key accounts. Or they seized control of your electrical equipment and all production stopped. No more brewing, no more sales.
This insurance covers you for any losses that the business or a third-party might incur as a result of a cyber-attack.
It also covers privacy breaches if anyone from your business accidentally exposes customer data.
If you have employees and/or are connected to the internet in any way, you are vulnerable to a digital fire, with potentially huge costs, fines & penalties.
Management Liability Insurance
Your hobby is now a significant business and now much more complex. As managers, there is now a lot to get your head around.
Management Liability Insurance is a comprehensive insurance cover for Private companies (with a turnover of up to $50M).
It provides protection for the directors and management as well as your Company or Partnership for most of the major breaches and risks that might occur in the day to day running of the business.
Whether it’s employment-related, health & safety, statutory liability or tax audit this policy protects you and your business.
Product Recall Insurance
If any of your beer became contaminated during manufacturing, or any of it was mislabeled you would have to recall it. The associated financial and reputational costs would be high.
Product recall insurance covers recall, replacement and make good expenses. It also provides for expert consultants to mitigate brand damage and can cover business interruption costs.
Note product liability insurance does NOT cover product recall.
And need to consider
Commercial Vehicle Insurance
Your vehicles are an essential tool of the trade. Visiting suppliers, distributors, customers or simply carting supplies and brewing equipment around.
Commercial Vehicle Insurance covers your business for any damages to the vehicles you use or any damages they cause to people or property.
Business Interruption or Profits Insurance
Loss of Profits or Business Interruption Insurance pays your operating expenses while your business is recovering from a disaster. Which often takes much longer than you realise. All the while your expenses still need to be paid, even though there is no money coming in.
There is almost no point in having property and assets insurance without this. If a disaster strikes this cover future proofs your business, protecting your bottom line.
Goods in Transit Insurance
Goods in Transit Insurance covers your business for damage to insured property – whether beer, equipment or machinery – whilst in transit within Australia & overseas caused by certain defined events.
Business Travel Insurance
You are travelling in a work capacity. Showcasing your beers at events and tastings, attending brewery and business conferences.
Corporate Travel insurance covers employees against any mishaps: from illness & injury, missed connections and lost or damaged goods, just to name a few.
Key Person Insurance
Your business is growing, dynamic and dependent upon a few key people. If any of those became incapacitated or died it would have a major impact. Often it can bring the business to a complete standstill.
Key Person insurance pays the business in the event such a tragedy happened. So that it could carry on operating and in time replace the key person.
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