Insurance

[Oakland]

Hi- This is my first post here, but I've been reading through a lot of the threads. I'm toying with the idea of starting up a production. I've been a homebrewer for a few years, and I've worked in the public non-profit sector for quite a while so I have a pretty high tolerance for working through bureaucracy and also experience working with federal, state and local programs. A good friend of mine is an excellent beer brewer and a physicist/scientist, so I'm starting the research on how to put together a stilling business as a new career.

I'm trying to identify all the operating costs associated with the production, then of course figure out how much we'll need to produce to make the business feasible. One item I don't have is insurance. What type of coverages do you guys carry? Just general liability, or commercial liability? We won't have employees, at least in the beginning. This will be a California based business, an LLC if that matters.

Cheers.

[JohninWV]

I carry a general business liability policy that includes the standard stuff plus some funds on finished products. I also carry P&C, and liquor liability. I really could get by without the liquor liability since I'm only allowed to serve one sample, per person, per day but it's cheap and I have some reasons to believe its necessary in my circumstance.

WV has outrageous insurance prices, so it's very expensive as a total package.

[Palmetto Coast]

I carry a general business liability policy that includes the standard stuff plus some funds on finished products. I also carry P&C, and liquor liability. I really could get by without the liquor liability since I'm only allowed to serve one sample, per person, per day but it's cheap and I have some reasons to believe its necessary in my circumstance.

WV has outrageous insurance prices, so it's very expensive as a total package.

The liquor liability, is that through your general business insurer? May I ask who you use for that (are they loca or national)? I have spoken with one insurer, and was told they didn't offer that type of coverage. Haven't made it to any others yet.

Thanks,

Todd

[Paul Tomaszewski]

In my experience we had to go with a specialty carrier. Now the amount of production is going to drive your train quite a bit. We're tiny, so we fall into a different category when it comes to building codes, liability, etc. We have a policy for our buildings (general liability), then a policy for the commercial/liquor liability (basically a 2 in 1 deal). The price we have (I think) is quite good. We use Cincinnati Specialty (a division of Cincinnati Insurance). We got them through a broker. However, you are in CA, and they like to make their own rules that can make situations like mine possibly not applicable in any way. They may require you to capture your fermenting CO2 in a bag, then give it to Al Gore so he can plant trees and fly around the world in private jets while leaving his lights on in his 4 houses across the country... I dunno (full disclosure, we're close to Nashville and he leaves his mansion lights on 24-7 while telling everyone else they need to turn theirs off to save us all from global warming).

[Oakland]

Thanks guys. I guess my next stop would be to talk to a broker. I'm sure costs vary wildly from state to state.

Paul- I'll see if I can work out a CO2 recapture program with one of our local pot growing businesses. Now that ONLY happens in California!

[JohninWV]

The liquor liability, is that through your general business insurer? May I ask who you use for that (are they loca or national)? I have spoken with one insurer, and was told they didn't offer that type of coverage. Haven't made it to any others yet.

Thanks,

Todd

My liquor liability is through my general business insurer. No standard lines wanted any part of insuring us during our first year (typical in WV), so we went through an E&S (excess and surplus) company. Omega and Scottsdale are our providers.