Like people, wineries come in many varieties and there is often more to them than what is seen on the surface. So, when it comes to winery insurance, winery owners need to realize the full breadth of their business insurance needs.

Due to the complexity of the wine business, this can be quite a task.  In fact, wineries often require nearly every type of insurance coverage available on the market.  The following is a short list of the different aspects of the winemaking process -- and each requires its own dedicated insurance coverage:

Exposures for Wineries to Consider:

• VINE PLANTING & GROWING
• HARVEST
• CRUSHING, DE-STEMMING, PRESSING, & RACKING
• FERMENTATION
• TANK CLEANING
• BARREL & TANK AGING
• BLENDING
• FINING
• BOTTLING & LABELING
• STORAGE
• TRANSPORTATION & SHIPPING
• CONSUMPTION and MORE

Growing/Processing/Harvesting

To begin, the winery should look at the foundation of the winemaking process: vines and rootstock.  Care should be taken to determine how much they are worth, and all clone information should be properly documented.  If there are exposures in this area, intellectual property coverage can protect if and when questions arise as to the origins of a root stock. 

Other vine issues can derive from weather, infections, flood, insects, or fire, among others. Significant financial losses can result from any of these, so your insurance agent should understand the risks involved. Additionally, a good crop insurance policy can protect against loss or damage to the grape crop itself -- and will insure against a wide variety of perils.

Another aspect of harvest that needs to be considered is equipment.  All mechanical devices related to planting, fertilizing, or irrigating can be included in mobile equipment coverage.

Labor risks are another critical area, so worker’s compensation coverage is always wise.

Contamination coverage, which protects against damage due to bacteria, pesticides, or other contaminants, is fairly standard in winery policies, but should always be verified.

Labeling/Inventory/Transport

Due to the creative nature of wine labels, intellectual property coverage is a necessary coverage. Whether your winery is sued by someone else, or another operation duplicates your idea, intellectual property coverage will offer protection.

Storage and transportation have their own set of insurance concerns. Wineries work with many different entities for their inventory, transportation needs. For instance, if wine is stored offsite, the wine producer needs coverage for other non-owned locations. It is usually wrong to assume that the storage company or distributor will have insurance coverage for your wine.  Thus it is imperative that all locations where wine is stored are specifically listed on your policy.

Selling/Tasting & More

Many wineries do much more than sell wine or operate tasting rooms. Some attend large wine tasting events, serve food, offer tours, or rent out their space for others to use. All of these activities need to be specifically addressed in your policy.

Coverage should also be in place for any internet sales or marketing activities--especially in the case where credit card information is stored online.  These activities can be classified under the category of cyber liability, and if your winery has a large online presence, this coverage is probably called-for.

Carriers and Risk Management

In the developing marketplace of winery insurance, a wide variety of carriers are available. Every winery should find an agent who knows the various strengths of each company.  MCV Insurance Producers has over three centuries of experience in agricultural insurance, and can help you find the right fit.  Contact us today to review your exposures and find the perfect policy for your needs!