Due to their unique nature, vineyards of all sizes are presented with an unusual blend of exposures that need to be managed. As a wine producer, you face different types of risk not normally seen together in the same industry. For example, vineyards that grow their own vines have to be concerned about agricultural industry woes like crop health while also managing the same responsibilities faced by any commercial business that makes and sells a product.
Because no two vineyards are alike, it is important to carefully study your exposures based on your unique operations to ensure that all risks are covered.
What insurance does my Vineyard need?
Crop risks – Grapes are susceptible to a variety of disasters such as hail, drought, floods, pests, infections and bacteria, among other things. These problems have the potential to wreck more than a year’s production since vines need time to re-establish themselves before they can return to their regular output after extensive damage.
Contamination – Because the purity of the grape is so deeply connected to the taste of the end product, contamination is a major liability. From the vine to the finished product, contamination can occur at nearly any point in the process. Whatever the case, if a crop’s quality is compromised, it could make some or all of the grapes unusable.
Intellectual property – The unique root stock that grapes come from can be considered intellectual property. Whether you grow your own grapes or purchase them, use of unlicensed root stock or their produce could constitute patent infringement.
Intellectual property claims can also arise from labelling conflicts where one party copies some or all of another party’s label design. Costs can be incurred if you are sued by someone else or if you have to take actions against a company guilty of infringing on your brand.
Product recall and liability – No matter what the industry, every manufacturer faces the possibility that an issue could be found with a product after it has been distributed. The resulting product recall can involve lost time, extra shipping charges and losses associated with not having a sellable product available for consumers. Even if you are not responsible for a product recall, widespread damage to the industry can occur if another wine product erodes consumer confidence.
Storage and shipping – In order to preserve quality, special precautions may need to be taken during storage and shipping. If a product is stored offsite or transported by an outside party you still may be responsible for the product’s safety.
Employer’s liability – Even if your vineyard operates with a small staff there is always a chance for workplace injury. This risk increases with the size of your operation, especially if you grow your own grapes and must employ additional workers for planting and harvesting.
Public liability – If you offer tours, host events, run an onsite retail shop or are involved in any other function that opens your business to the public, you increase the chance that a nonemployee will be injured on your property. Based on the cause of injury, you as the property owner could be held liable.
Insurance exposures for your Vineyard & Winery
Vineyards have a variety of risks that can be serious threats to the business if unaddressed. By purchasing proper cover and implementing risk management programmes, vineyards can reduce their exposures.
What Vineyard Insurance is right for you?
When identifying the risks your vineyard faces, consider everything your vineyard does—your exposures are not limited to the harvest. The wine producing process has unique risks. It is an intricate process; there are distinct threats associated with it, including both property and liability exposures.
Crop Risks – Vineyards face a multitude of risks, including weather, vine infections, insects, fire, floods and other events, leading to financial problems. Pesticides being sprayed on adjacent areas or events during corking and bottling can affect large quantities of product, presenting a significant risk. Wine that can harm consumers could be subject to a product recall. Proper risk transfer can protect your business from loss of income.
Public & Products Liability – If your vineyard hosts events, gives tours, rents space for others, or is part of the tourism industry, it can have significant liability exposures. Take steps to prevent incidents and to purchase proper cover to protect the business in the event of a claim.
Employers’ Liability – Good health and safety programmes, including the promotion of a safety culture, are fundamental to keeping claims at a minimum. By keeping your employees safe, you not only reduce turnover and absenteeism, but also can help keep your employers’ liability premiums down.
Intellectual Property – Your product is the result of a careful study of variety and process. Both techniques used in the production of wine and concepts of the bottle’s label are intellectual property. A problem with the origins of the root stock could easily become an intellectual property claim. Vineyards could also be sued for using labelling concepts from another vineyard. Legal actions can be lengthy and costly, so it’s vital to prepare for this risk.
Vineyards & Winery’s have a variety of risks that are often overlooked. These risks can be serious threats to your business if left unaddressed.
Cyber-Liability – Using the Internet to promote and sell your product can be extremely lucrative, but performing business transactions on your website and storing credit card information online presents cyber-liability exposures. This could result in costly claims, so it’s important to take steps to prevent breaches in security and transfer your risk when possible.
What is commonly covered on Vineyard Insurance?
The above exposures are commonly covered in vineyard policies. Such policies are a group of covers packaged together, designed specifically to protect against common industry risks. However, because of variations between operations, it is not uncommon for vineyards to need more or less of certain covers. One size does not fit all, making it important to compare different policies against your unique needs. Performing an in-depth analysis of your exposures will help you maintain the proper level of cover.
Count on the Experts Vineyard Insurance Experts at BIS
Because each individual vineyard may face a unique set of risks, it is important to team up with an experienced insurance broker who understands your company and can knowledgeably review your situation to design a policy tailored to your exact needs.