Running a brewery or winery means juggling a lot of moving parts—from fermentation schedules to distribution logistics. The last thing you need is to piece together multiple insurance policies to protect your business. That's where a Business Owners Policy (BOP) comes in. Think of it as the insurance equivalent of a combo meal: you get the essentials bundled together at a better price than ordering à la carte.
A BOP packages general liability and commercial property insurance into one policy, and for most small breweries and wineries, it's the smartest place to start. You'll typically save 10-15% compared to buying these coverages separately, and you'll avoid the headache of managing multiple policies with different renewal dates. But here's the thing: a BOP isn't right for every craft beverage business, and it doesn't cover everything. Let's break down when a BOP makes sense for your brewery or winery, what's included, and what gaps you'll need to fill.
What's Actually Covered in a Brewery or Winery BOP?
A standard BOP combines three core coverages that almost every brewery and winery needs. First up is commercial property insurance. This protects your physical assets—your building (if you own it), brewing or winemaking equipment, fermentation tanks, bottling lines, inventory, furniture, and even your signage. If a fire breaks out in your taproom, a storm damages your roof, or someone breaks in and steals equipment, your property coverage kicks in to repair or replace what's lost.
The second component is general liability insurance. This is your defense against customer injuries and product-related claims. If a guest slips on a wet floor in your tasting room and breaks their wrist, general liability covers their medical bills and any legal costs if they sue. It also includes product liability, which is crucial for breweries and wineries. If someone claims your beer or wine made them sick, or a bottle explodes and injures a customer, your general liability coverage handles the claim.
The third piece—and this is where a BOP really shines—is business interruption coverage, sometimes called business income insurance. Let's say a kitchen fire forces you to shut down your brewpub for three months while you rebuild. You're still on the hook for rent, loan payments, and possibly payroll for key employees. Business interruption coverage reimburses your lost income and helps cover those ongoing expenses so you can reopen without going broke. According to recent industry data, the average small business pays between $500 and $2,000 annually for a BOP, with breweries on the higher end due to equipment values and public-facing operations.
When Does a BOP Make Sense for Your Brewery or Winery?
BOPs are designed for small businesses, and insurers apply fairly strict eligibility criteria. Most carriers will consider your brewery or winery for a BOP if you have fewer than 100 employees and generate less than $5 million in annual revenue. Some insurers are more flexible—USAA, for example, extends BOP eligibility to businesses with up to $10 million in revenue—but others set the bar at just $1 million. If you're a nanobrewery operating out of a small taproom or a boutique winery selling direct-to-consumer, you're almost certainly eligible.
But if you're distributing regionally, running a large production facility, or operating multiple locations, you might outgrow BOP eligibility and need a commercial package policy instead. The good news? As of 2025, new BOP customers are paying an average of $118 per month, making it an affordable option for growing craft beverage businesses. That bundled approach also simplifies your life—one policy, one renewal date, and one claims process instead of juggling multiple insurers.
What's Not Covered: The Gaps You Need to Know About
Here's where things get tricky. A standard BOP doesn't cover everything a brewery or winery needs. The most glaring omission for craft beverage businesses is liquor liability insurance. If you serve alcohol on-premises—whether in a tasting room, brewpub, or winery hospitality center—you need liquor liability to protect yourself if an intoxicated patron causes harm. Many states and commercial leases legally require this coverage if you're serving alcohol for on-site consumption. Some insurers will add liquor liability to your BOP as an endorsement, but others require you to buy it separately.
Standard BOPs also exclude several other risks that are particularly relevant to breweries and wineries. Flood and earthquake damage aren't covered, which matters if you're in a high-risk zone. Cyber liability—protection against data breaches and ransomware attacks—is typically excluded, though it's becoming more available as an optional add-on. And while your BOP includes product liability for claims that your beer or wine harmed someone, it doesn't cover specialized risks like contamination from wild bacteria or yeast, spoilage from temperature failures, or the costs of recalling a bad batch. Many specialty insurers offer these coverages through craft beverage programs, but they're not part of a standard BOP.
One more critical gap: workers' compensation insurance. If you have employees—and most breweries and wineries do—you're legally required to carry workers' comp in almost every state. A BOP doesn't include it, so you'll need to purchase a separate policy. The same goes for commercial auto insurance if you're using vehicles for deliveries or distribution. BOPs exclude auto coverage entirely.
Specialized Coverage Options for Craft Beverage Businesses
While a BOP gives you a solid foundation, many breweries and wineries benefit from specialized endorsements or standalone policies tailored to craft beverage risks. Contamination and spoilage coverage protects your inventory if wild bacteria, cleaning solvents, or temperature failures ruin a batch. This isn't cheap wine or beer we're talking about—losing several thousand gallons of product can be financially devastating, especially for smaller operations.
Product recall coverage is another smart addition. If you discover a quality issue or contamination after distribution, you'll need to notify customers, retrieve products from retailers, and potentially hire temporary staff to manage the recall. These costs add up fast, and standard BOPs don't cover them. Equipment breakdown insurance is also worth considering—brewing and winemaking equipment is expensive and essential to your operations. If your fermentation tanks, bottling line, or refrigeration system breaks down, equipment breakdown coverage pays for repairs and can even cover lost income while you're down.
How to Get Started: Finding the Right BOP for Your Brewery or Winery
The first step is to understand your business's specific needs. Are you a small taproom with limited distribution, or a growing brewery shipping across state lines? Do you own your building or lease your space? Do you serve alcohol on-premises? These details will determine not just whether you qualify for a BOP, but also what additional coverages you need. It's worth talking to an insurance agent who specializes in craft beverage businesses—they'll know the nuances of brewery and winery risks and can help you avoid coverage gaps.
When you're comparing quotes, don't just look at the premium. Check the coverage limits on both your property and liability sections. A cheap BOP with a $300,000 property limit won't help much if you have $800,000 worth of brewing equipment. Similarly, a $1 million general liability limit might not be enough if you're serving hundreds of customers weekly in your tasting room. Many breweries and wineries opt for $2 million in liability coverage to ensure they're adequately protected.
Finally, review your BOP annually as your business grows. That $1 million revenue threshold can sneak up on you, and you don't want to find out you've outgrown your policy when you file a claim. As your inventory, equipment, and customer base expand, your insurance needs will evolve too. The beauty of starting with a BOP is that it gives you a strong foundation—you can always add specialized coverages or transition to a more comprehensive commercial package as your brewery or winery scales up.
