Opening a brewery or winery in New York is an exciting venture, but before you start pouring pints or hosting tastings, you need to navigate the state's insurance requirements. Here's the thing that surprises most craft beverage entrepreneurs: New York doesn't just recommend insurance—the State Liquor Authority won't even issue your license without proof of specific coverage. And that's just the beginning. Between workers' comp mandates, liability concerns, and the unique risks of alcohol production, getting your insurance right from day one can save you from costly headaches down the road.
Mandatory Insurance for Licensing
Before the New York State Liquor Authority will approve your brewery or winery license, you must submit proof of Workers' Compensation and Disability Insurance—or provide a Certificate of Attestation of Exemption from Coverage if you qualify. This isn't optional. No insurance documentation means no license, period.
Virtually all New York employers must carry workers' compensation coverage, and breweries and wineries are no exception. If you have even one employee—whether they're working the taproom, helping with production, or handling deliveries—you need coverage. The good news? Assessment rates dropped significantly in 2025, falling from 9.2% to 7.1%, which translates to real savings. That 22% reduction means New York businesses collectively are saving about $191 million this year.
Wineries typically fall under classification code 2143 (Winery and Drivers), while breweries have their own separate classification codes. These codes determine your premium rates, so make sure your insurer classifies your operation correctly. And here's an important update for 2025: New York expanded mental health coverage under workers' comp. All workers can now submit claims for mental health conditions triggered by workplace circumstances. Plus, employers must provide 20 hours of paid prenatal leave annually to pregnant workers starting January 1, 2025.
General Liability and Liquor Liability Coverage
Here's where things get tricky. New York doesn't actually mandate liquor liability insurance by law. The State Liquor Authority won't require you to carry it for licensing purposes. But before you celebrate, understand this: you almost certainly need it anyway.
Why? Because landlords and lenders routinely require liquor liability coverage as a condition of your lease or business loan. If you're leasing space for your taproom or production facility, your landlord's attorney has probably already written liquor liability requirements into the contract. Same goes for your bank or investors. They want to know you're protected if a customer leaves your establishment, causes an accident, and claims you over-served them.
And here's the kicker about general liability policies: most standard policies explicitly exclude liquor liability coverage. You might think you're covered, but when a claim comes in, you'll discover that your general liability policy has a liquor exclusion buried in the fine print. You need specialized coverage, either as a standalone liquor liability policy or as an endorsement to your general liability coverage.
The minimum coverage amounts aren't set by state law, but typical policies range from $1 million per occurrence to $2 million aggregate. Your specific needs depend on your operation size, whether you have a taproom or tasting room, how much alcohol you're serving on-premises, and what your lease or loan documents require. A small farm winery doing tastings by appointment has different risk exposure than a busy downtown brewery with a full restaurant and event space.
Specialized Coverage for Production Risks
Standard business insurance policies aren't designed for the unique risks you face in alcohol production. Think about what you're doing: operating heavy brewing or winemaking equipment, storing flammable materials, managing fermentation processes, and handling products that can spoil or become contaminated. A generic business owner's policy might leave you exposed when something goes wrong.
Specialized brewery and winery insurance addresses these gaps. You need product liability coverage in case someone gets sick from your product. Equipment breakdown insurance protects you if your fermentation tanks, bottling line, or refrigeration system fails. Spoilage coverage reimburses you for lost product if contamination ruins a batch. And if you're doing tours or hosting events, you need protection for visitors on your premises.
Commercial property insurance is also essential, covering your building, equipment, inventory, and supplies against fire, theft, vandalism, and natural disasters. If you're a farm brewery or farm winery, you might need additional agricultural liability coverage since you're growing raw materials on-site. And don't forget commercial auto insurance if you're using vehicles for deliveries or distribution.
License Types and Additional Requirements
New York offers several license types for breweries and wineries, and your insurance needs may vary depending on which one you pursue. Farm brewery licenses require you to use specific percentages of New York-grown ingredients and limit you to manufacturing 75,000 barrels annually (with a minimum of 50 barrels). Standard microbrewery licenses have different requirements. For wineries, you'll need either a standard winery license (20-C license) or a farm winery license, each with distinct rules about ingredient sourcing and production volumes.
Some license types require bonds in addition to insurance. For example, standard brewer licenses require a $15,000 bond. You'll also need your federal TTB permit or Brewer's Notice before the state will issue your license. And if you're using an assumed name for your business, you'll need an Assumed Name Filing Receipt. If your license includes retail privileges, a Certificate of Authority is required. All applications go through New York Business Express as fillable forms.
One critical piece of advice: start early. License and permit approvals can take weeks or months—sometimes even longer. Getting your insurance sorted out early in the process means you won't face delays when the Liquor Authority asks for proof of coverage. The last thing you want is to have your buildout finished, your equipment installed, and your opening date announced, only to discover you're stuck waiting for insurance paperwork.
How to Get Started
Your first step is connecting with an insurance agent or broker who specializes in craft beverage operations. Generic commercial insurance agents might not understand the nuances of brewery and winery coverage, and you could end up with gaps in protection. Look for agents with experience in the New York alcohol beverage industry who can help you build a comprehensive package tailored to your specific operation.
Be prepared to provide detailed information about your business: your production volume, whether you'll have on-premises sales, if you're planning tours or events, what kind of equipment you'll use, how many employees you'll have, and whether you'll be distributing to retail accounts. All of this affects your coverage needs and premium costs.
As you grow, review your coverage annually. Your insurance needs when you're just starting out aren't the same as when you've expanded production, added a restaurant, or started distributing regionally. Working with a knowledgeable agent who understands your business means you'll have a partner who can adjust your coverage as your operation evolves. The investment in proper insurance from the start protects not just your business assets, but the dream you're building.
