Business Insurance

Adult Beverage Industry Insurance

CAI knows the industry is always changing based on taste profiles, ingredient availability, health and wellness trends, and legislature. Due to this, there is a lot of confusion with emerging risks such as CBD and THC beverages and whether certain non-alcoholic beverages should even be included under the moniker “Adult Beverage.”

Frankly it’s asking too much of a brewery or distillery to make sure they have the appropriate coverages in place all while managing their businesses and fighting for their small piece of the consumer dollar. That is the reason we developed the Curated Small Batch Insurance Solutions program. Let CAI and our team worry about the insurance so you can concentrate on your craft.

 

What are the unique risks the adult beverage industry faces?

Product Liability Risks

In the adult beverage industry, you face the risk of alcohol-related health issues or injury due to a defect in the product or improper labeling. With product liability insurance, your legal costs and settlements will be covered if a product causes harm or injury to consumers.

Liquor Liability

If a patron causes harm to themselves or others after being served alcohol (e.g., drunk driving accidents, violence), the establishment that sold it to them could face a lawsuit. Liquor liability insurance protects businesses from such lawsuits, covering legal fees and damages from incidents caused by intoxicated patrons.

Property Damage

Breweries, distilleries, and the like are susceptible to water damage, fires, theft, and vandalism. With commercial property insurance, the physical assets of the business, including buildings, inventory, and equipment, are covered against damages or loss.

Employee Injuries

In the adult beverage industry, you are at risk for employee injury. In production facilities, bars, or distribution centers, it’s not uncommon for slips, falls, or accidents while operating heavy machinery to occur. With workers’ compensation insurance, your business is protected from the legal complications that incur from such injuries, as well as ensuring your employees receive the necessary medical care and wage replacement.

Cybersecurity Risks

Now, more than ever, breweries, distilleries, and the like are reliant on technology for payment processing, reservations, and more. With this comes an increased susceptibility to cyber-attacks. With cyber liability insurance, your business is protected against data breaches, hacking, and other cyber threats.

Regulatory and Legal Risks

The adult beverage industry is heavily regulated. Non-compliance with local, state, or federal laws could lead to fines, penalties, or lawsuits. With general liability insurance, businesses will be helped with the costs of defending against lawsuits and regulatory violations.

Transportation and Distribution Risks

Alcohol being transported comes with a number of risks including accidents, theft, or damage during shipping. Commercial auto insurance covers vehicles used for transporting alcohol. Additionally, cargo insurance helps cover damage or theft of goods in transit.

Reputation Damage

Any negative publicity or social media backlash can damage the reputation of a brand or product, especially after an incident involving alcohol misuse. With media liability insurance or public relations insurance, the costs associated with repairing a damaged reputation, including crisis management and PR expenses, are covered.

Business Interruption

Events like natural disasters or fires can unexpectedly put your operations to a stop, leaving you scrambling to cover ongoing expenses and income. With business interruption insurance, you will be provided financial support for the duration of your closure, allowing time to make the proper repairs.

 

Why CAI Insurance?

CAI’s Curated Small Batch Insurance Solutions program takes a holistic approach to insurance for the ever-evolving Adult Beverage Industry, and we have industry veterans at the helm that not only act as a bridge between insurance and adult beverages, but as a true trusted advisor to your team.

CAI Insurance is one of the largest independently owned brokerages in the Midwest — a distinction driven by the same independent spirit that’s integral to the craft beverage industry.  We’re appointed by many of the nation’s top insurance carriers with established craft beverage programs. Combine those resources with Del Hall as your Risk Advisor — someone who understands your brewery or distillery inside and out and can guide you through all your risks, not just the insurable ones — and you’ve got a true Triple Threat of Protection!

Our available insurance solutions include:

• Brewery Insurance
• Distillery Insurance
• Cidery Insurance
• Winery Insurance
• THC Insurance
• Co-Packing Insurance
• Importer & Distributor Insurance

 

Meet Your CAI Partner

Del Hall

Del Hall is a former brewery & restaurant owner with over 15 years of experience in the Adult Beverage Industry. He fell in love with craft beer while serving in Germany in the US Army. He is a lifelong resident of Southwest Ohio and an Ohio State University alumnus. In addition to his alma mater, he is fiercely loyal to the Cincinnati Bengals and Cincinnati Reds. Del currently lives in Cincinnati with his wonderful wife Amy and their three children.

Del has held every role in the alcohol industry’s 3 tier system from Merchandiser to Wholesale Sales Manager to Brewery Owner. That experience has been invaluable in his role as Risk Advisor and Program Manager. His favorite quote is that “it’s easier to teach a Beer Guy the Insurance Industry than to teach an Insurance Guy the Beer Industry!”

If Del looks familiar to you, it’s probably because he’s been seen on over 500 TV shows and news articles in over 50 Countries for his exploits as “The Beer Fasting Ohio Man.” From Jimmy Fallon’s monologue, to appearing on Jay Leno, he has gained worldwide viral fame for not eating any food and living only on beer for 46 days of Lent. Now that’s a true love of beer!

Organizations Involvement

• Brewers Association
• Ohio Craft Beer Association
• Kentucky Guild of Brewers
• The American Legion Vice Commander

Get a quote today!

P: 513.221.1140

E: dhall@cai-insurance.com