sailorman9 Posted August 19, 2010 Share Posted August 19, 2010 Can you tell me who underwrites your bonds. I have been turned down on 3 times so far, I have had to educate the bonding companies about the bonds I need; they seem clueless. I think the refusal to provide bonding is because I am asking for so much. For a start-up I'm seeking a Unit bond - $10,000 for operations, $15,000 withdrawl, and $4,000 state even though I can't reach this level of production until after the 9th month. I'm sure many of you already went through this and finally found a company that understands this. Link to comment Share on other sites More sharing options...
will Posted August 19, 2010 Share Posted August 19, 2010 Contact Mary Allen at MIV - (707) 963-2777 or (707) 963-4073 fax. Has State told you that you need a bond? Link to comment Share on other sites More sharing options...
Scott @ Twenty2Vodka Posted August 19, 2010 Share Posted August 19, 2010 we approached the same local insurance company that provides our general liability and vehicle insurance. I've never considered the bond as something we were applying for and thereby could be declined from receiving. We told them the amounts we need and they took it from there, about 2 weeks later they had some papers for me to sign, and the first payment on the premium was due. If you've been decline (3 times ?!?) I doubt it's the amounts you are asking for since they directly affect the premium they will charge you and that's how they make money. Insurance agencies evaluate risk for a living, and somewhere somehow there are some risk-red-flags on your app if it's been turned down. and we're not required to have a state bond either, but every state is different. just a heads up. -Scott Link to comment Share on other sites More sharing options...
missriverdistilling Posted August 19, 2010 Share Posted August 19, 2010 Contact Jennifer Royall at John Sutak Risk in San Francisco. Took me 10 minutes to get my bond. Very inexpensive. Premium was $10 per $1,000 annually. She was great help. The bond was technically through Hartford. Jennifer C. Royall John Sutak Risk Services One Embarcadero Center, Suite 1040 San Francisco, CA 94111 Direct 415.901.2551 Main 415.394.0700 Fax 415.394.8839 Link to comment Share on other sites More sharing options...
Kristian Posted August 19, 2010 Share Posted August 19, 2010 We got ours through: State Farm - Chip Beake Ask for Barb Harner 106 East Olive Street Fort Collins, CO 80524-2861 Phone: (970) 482-1936 Fax: (970) 498-0773 I had some difficulty and had to search for someone who would give us a bond. Barb did a great job. email me if you want more details. Kristian Link to comment Share on other sites More sharing options...
Andrew Auwerda Posted August 21, 2010 Share Posted August 21, 2010 Bonds, Property and Casualty and all the insurance needs for a micro distillery...Just call Ted Barnes. He's very familar with the special needs that we all have. He will make this step easy. Ted Barnes cell # 610-710-1617 or email tedb@thebeacongrp.com Good luck. Andrew Link to comment Share on other sites More sharing options...
Beauport Bob Posted August 21, 2010 Share Posted August 21, 2010 This is actually a subject that does really benefit revisiting. I will use the info provided. Thanks to all. A little advice would be to ask about the process to raise your coverage level. It might be worth overbuying now as it will be a pain, or at least it was for us to increase, especially when we were barreling and had sales of about oh.. let's say...Zero. there was no understanding by our local agency. The process took so much effort and time I would glady have paid the increased premium fee in the beginning. You will reach your limits. Cheers, Bob Link to comment Share on other sites More sharing options...
delaware_phoenix Posted August 21, 2010 Share Posted August 21, 2010 I wasn't able to get increased coverage. I was told the insurance underwriters look at these things like a loan. Even though it's not. But they want to see that they're able to come after you for the $25K in case of a claim. They don't want to be 3rd or 4th in line on some equipment in case they need to collect. The more debt you have, the greater the problem. The local agency was somewhat understanding, but certainly didn't want to work hard to increase the bond with another agency. I had to stay with my existing bond coverage and adjust my product mix to stay within it. Maybe I'm not in touch with reality, but $15K withdrawal coverage seems like a lot to me. That's enough for over 5500 bottles at proof twice a month (about 1111 proof gallons). Seems to me that's a lot of booze. Link to comment Share on other sites More sharing options...
robertbirnecker Posted August 22, 2010 Share Posted August 22, 2010 Hey, Hartford actually has their own insurance classification for distilleries now. We have sent a number of people to them. We work both with Michael Klee and Jennifer Royall. Ryan already posted her contact info above. If you want to go beyond the bond, I am happy to share Michael's address for insurance needs as well. Just contact me. All the best, Robert Robert Kothe Distilling Technologies. Award winning handcrafted German engineered potstills for the production of high quality fruit and grain spirits, as well as bioethanol. “Kothe Destillationstechnik” uses patented technology to specially engineer each still with solid quality and energy saving compounds to meet the particular needs of each distiller. Kothe Distilling Technologies is the sole representative of “Kothe Destillationstechnik” in North America, Canada, and Mexico. -------------------------------------------------------- Kothe Distilling Technologies Inc. 5121 N. Ravenswood Ave Chicago, IL 60640 http://www.kothe-distilling.com info@kothe-distilling.com (312) 878 7766 Link to comment Share on other sites More sharing options...
AdirondackVodka Posted November 16, 2011 Share Posted November 16, 2011 My question is more basic - how much and how do I calculate it? What amount of coverage is required for your DSP app and, if it's hard to increase, what should one have Link to comment Share on other sites More sharing options...
JohninWV Posted November 17, 2011 Share Posted November 17, 2011 Steve, You need to read this in it's entirety. http://ecfr.gpoaccess.gov/cgi/t/text/text-idx?c=ecfr&sid=ae3312b52c19993f69af6029957ec49f&tpl=/ecfrbrowse/Title27/27cfr19_main_02.tpl Subpart F is relavant to your question. Mins and Max's are listed there for each category; distiller, warehouseman, processor. You'll need enough to cover all of the alcohol in production and storage as well as the stuff you withdraw every 15 days. If you are doing all three, a Unit Bond might be your best bet. I don't like having to get increases in bond and the necessary paperwork that goes along with it. I've been in business 20 months and I'm on my third round. I think you should estimate what you think you're going to need in 12-18 months and shoot for that number. Others have found it easier and have opted to get a new bond more often. Of course, it's $13.50/proof gallon. But if this number doesn't make sense to you, you need to do much more reading before asking anymore questions. Link to comment Share on other sites More sharing options...
Blackheart Posted March 20, 2012 Share Posted March 20, 2012 I'm a believer in giving praise when it's due: Jennifer Royall at John Sutak was aces to deal with. Clear, concise and timely. And not too spendy either. Link to comment Share on other sites More sharing options...
Beauport Bob Posted March 20, 2012 Share Posted March 20, 2012 For the rest of us, Blackheart, are you in California? Does Ms. Royall write out of California for other States? Link to comment Share on other sites More sharing options...
bluestar Posted March 20, 2012 Share Posted March 20, 2012 I know Jennifer did our federal for us, and will do a state, for Illinois. Link to comment Share on other sites More sharing options...
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