Craft Breweries & Craft Distilleries Insurance in Colorado Equipment Breakdown Coverage
Colorado craft breweries and craft distilleries face unique risks that require specialized insurance coverage. Understanding the right combination of policies can protect your investment, your employees, and your business operations. Here is an overview of the key coverage areas available for craft beverage producers in Colorado.
General Liability Coverage
Comprehensive general liability coverage is available with limits up to $1 million per occurrence and $2 million aggregate. Additional coverage options include:
- Product withdrawal expense coverage
- Blanket additional insured provision
- Special events liability coverage
- Liquor liability coverage up to $1 million per occurrence / $2 million aggregate
- Employee benefits liability coverage
Property Coverage
Property coverage for craft breweries and distilleries includes blanket property limits with substantial in-house capacity. Key features include:
- Special causes of loss coverage for building contents, business income, and extra expense
- Building definition automatically incorporates production equipment as covered property
- Boiler and machinery coverage included
- Contamination and adulteration coverage options
- Market value methodology for valuation
- Peak season coverage
- Sign coverage for both attached and unattached signs
Automobile Coverage
Auto coverage encompasses owned, non-owned, and hired vehicles. Hired physical damage coverage is provided, along with rental reimbursement for private passenger vehicles.
Crime and Fidelity Coverage
Crime and fidelity protections include employee dishonesty coverage, money and securities coverage, and protection against money orders and counterfeit paper currency.
Equipment Breakdown Coverage
Equipment breakdown insurance is one of the best coverage, service, and price values in the insurance industry. It covers mechanical and electrical equipment failures, with broad applicability to virtually any equipment that plugs in or requires electrical power. For craft breweries and distilleries that rely heavily on specialized production equipment, this coverage is essential.
Real Loss Examples
The following real-world claims scenarios demonstrate why equipment breakdown coverage is so important for craft beverage producers:
Loss Example 1: Ruptured Vat — $13,870
An employee over-pressurized a 2,000-gallon steel vat to 35 psi, far exceeding the normal operating pressure of 5 psi. The excessive pressure caused the vat to rupture. The insurance claim covered repair parts, labor costs, and manufacturer travel expenses, totaling $13,870.
Loss Example 2: Storage Tank Rupture — $7,870
A barley storage tank ruptured after the atmospheric vent became clogged due to overfilling and incomplete emptying procedures. The resulting pressure buildup caused the top head of the tank to rupture. Total claim: $7,870.
Loss Example 3: Glycol Chiller Breakdown — $16,565
A power surge damaged a custom glycol chiller compressor. While business income loss was avoided, spoilage damage occurred to stored beer. Property damage totaled $9,365 and spoilage losses reached $7,200, for a combined total of $16,565.
Loss Example 4: Boiler System Failure — $55,818
Holes developed in the steel drum of a water tube boiler, causing a complete system breakdown that affected the facility’s 24/7/365 production steam supply. Overtime labor could not replace lost production. Property damage came to $14,299 and extra expenses reached $41,519, for a total loss of $55,818.
Get a Quote
For more information about craft brewery and craft distillery insurance coverage in Colorado, contact us today:
- Email: rick@allaccessins.com
- Phone: (303) 932-1700
- Address: 9200 W Cross Dr #210, Littleton, CO 80123