The answer is: a winery needs a Commercial Property insurance policy.
Assembling the proper Commercial Property insurance policy is where things get a little tricky. It is, in fact, the most complex part of a winery’s insurance package.
Why is it complex?
The first reason is because wineries have diverse categories of property to insure. Rather than list all the different types of buildings, structures, mobile equipment, etc., that exist on winery, I’ll just direct you to this page, where you can see how many categories of property a winery has. The good news is all the types of property shown are insurable. Virtually all buildings, dwellings, and permanent structures would be placed on a Commercial Property policy (or sometimes a Farm Property policy, depending on the individual characteristics of the winery). It is up to the winery to know the values of each of the types of property and up to the agent to gather all the information about them to provide to the insurance company.
The second reason a winery’s property is difficult to insure is because of the thing that makes them a winery: the wine itself! Wine has none of the characteristics of the tangible property that insurance companies like to insure. Why is wine difficult to insure?
These predicaments are enough to keep at least a few winery owners up at night. What insurance pays for this? The answer is: special winery coverage endorsements created specifically for the wine industry provide protection for each of those scenarios listed above and summarized here – market value issues, leakage/spillage, contamination, and wine processing errors. These coverages are typically added to your Commercial Property policy, and do not have to be sought out separately. More good news: these coverages are not expensive.
Wrapping up this section: your winery’s property is a complex beast, but with the right agent who works with the right insurance companies, it is entirely possible to have a proper Commercial Property policy that covers all your different types of property, as well as the wine itself that has its own unique risks.
Is there anything else we’re missing? Find out in part 3.
Gillespie Insurance Services helps people and businesses in California, Arizona and Nevada.