Beverage Insurance

Beverage products and beverage insurance are a fast-growing segment.  New beverage products are blurring traditional lines and using ingredients not seen before.

All beverage companies need either General Liability or Product Liability for protection and to gain access to markets.

Beverage Insurance – General Liability

General Liability for beverage manufacturers and importers, is critical to succeed in the marketplace. This form of liability insurance is the most requested form of insurance in vendor contracts. General Liability contains both liability for your premise and operations as well as product liability.  Product liability, on its own, is available but for most businesses, not as versatile.

Beverage products, from an insurance perspective, seem to fall into the following categories:

  • Alcoholic
  • Non-alcoholic traditional
  • Non-alcoholic with traditional and new age ingredients
  • Nutraceutical or beverages emphasizing health benefits (with and without traditional ingredients)
  • Energy Drinks

We see beverages produced by co-packers, in shared space commercial kitchens, owned facilities and imported from many countries. The name on the label is considered the manufacturer regardless of who physically produces the product.

Commercial Umbrella Liability or Excess Liability can increase liability limits when needed or required. This can be done with the primary liability policy (one policy number) but it may require a separate policy.

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Beverage Insurance
Beverage Insurance

Contract Considerations for Beverage Insurance

When securing General Liability or Product Liability the following tips will help when complying with vendor contracts:

  1. Know your limits of liability per occurrence and in aggregate. Contracts will either stipulate one number or two. When only one number is stated in the contract, it usually means a limit of liability per occurrence. Two numbers looks like, x,xxx,xxx per occurrence with a x,xxx,xxx aggregate. Additional limits can be purchased by using Umbrella or Excess limits.
  2. Some vendors may put products in classes meaning, higher hazard products need higher liability insurance limits than lower hazard products. Know your class.
  3. Endorsements or changes to the liability insurance often need to be made. Here are the common changes:
    • Adding an Additional Insured (usually Vendors Additional Insured but not always)
    • Waiver of Subrogation (each party agrees not to have their respective insurance companies go after each other)
    • Primary and Non-Contributory (vendors insurance does not contribute to the claim until after yours is used up)
    • Cancellation Notification (often dictated by state law but can be changed by contract)

Other Insurance for Beverage Companies

Although liability insurance is most requested by beverage companies, do not forget about coverage for:

Getting the right beverage insurance coverage, for the right price, is not as straight forward as it used to be.

We can help with alcoholic beverages, non-alcoholic beverages, energy drinks, nutraceuticals and functional beverages. We serve all types of beverage businesses including beverage manufacturers, importers, copackers, distilleries, beverage distributors and more.

Contact us to get more information or request a quote.

Insurance Suggestions for Stages of Your Beverage Business

Bootstrap Stage

Starting Out

General Liability or Product Liability
Excess or Umbrella Liability

Catching On Stage

Got Some Life

General Liability or Product Liability
Excess or Umbrella Liability
Hired & Non-Owned Auto Liability

Onto Something Stage

Getting Traction

General Liability or Product Liability
Excess or Umbrella Liability
Hired & Non-Owned Auto Liability
Workers Compensation
Inventory/Packaging Property Coverage
First Party Product Recall

We Got This Stage

The Long Haul

General Liability or Product Liability
Excess or Umbrella Liability
Hired & Non-Owned Auto Liability or Commercial Auto
Workers Compensation
Full Product Recall
Inventory and/or Equipment Coverage
Business Income Coverage

beverage insurance

Beverage Insurance For:

  • Craft Breweries
  • Craft Distilleries
  • Juices
  • Soda
  • Water (Including Flavored Water)
  • Coffee
  • Importers
  • Nutraceuticals
  • Functional Beverages
  • Beverage Co-Packer