With Christina Martin—Vice President, KRGinsure
Ontario has a robust culture of microbreweries, many of which had to quickly pivot to survive during the pandemic. Toronto-based KRGinsure has a large Hospitality portfolio that includes many of these breweries. They shared some of the issues facing breweries and what brokers are doing to help.
WHAT ARE SOME OF THE UNIQUE CHALLENGES IN INSURING THESE CLIENTS?
Breweries originally started off selling their own beer products and offering tours of their facility. In recent years they’ve expanded to serving food, bringing in entertainment and selling other products. But since the pandemic, inside dining and entertainment has been largely paused and breweries have had to switch to home delivery of their product offerings.
WHAT ARE THE UNIQUE FEATURES OF THEIR COVERAGE?
It’s important to make sure breweries have the proper host liquor liability coverage when they offer consumption of alcohol on site, whether serving inside or on a patio. Coverage for contamination, equipment breakdown, packaging errors and product recall are just as important.
WHAT ARE SOME OF THE COMMON CLAIMS ISSUES BREWERIES FACE?
The most common claim is the regular slip and fall. Breweries are prime candidates for these types of claims given the nature of their business—personal injury lawyers are happy to handle cases involving breweries and slip and falls.
HOW HAS COVERAGE ADJUSTED TO THE WAYS THEIR BUSINESS HAS SHIFTED?
Although breweries had to start offering delivery, not all insurance companies offer delivery, especially of alcohol. This has been a struggle for many of them. Not every company will adjust their rules to accommodate, making it hard for brokers to find coverage for their clients during this pandemic.
HOW HAS THE PANDEMIC IMPACTED THIS NICHE?
The main area I see that breweries have been impacted is those serving food and hosting events. During the lockdowns they had to either close completely or start offering delivery. The issue is they can extend delivery to existing customers but finding new customers is a little more difficult.
HOW HAS COVERAGE ADJUSTED TO THE WAYS THEIR BUSINESS HAS SHIFTED?
Although breweries had to start offering delivery, not all insurance companies offer delivery, especially of alcohol. This has been a struggle for many of them. Not every company will adjust their rules to accommodate, making it hard for brokers to find coverage for their clients during this pandemic.