Opening a brewery or winery in Texas is exciting—but before you pour your first pint or uncork that first bottle, you need to understand the insurance requirements that come with operating an alcohol-producing business in the Lone Star State. Texas has specific mandates that go beyond typical small business coverage, and missing even one requirement could jeopardize your license, leave you personally liable, or sink your business before it starts.
Here's what you need to know about insurance requirements for Texas breweries and wineries—from TABC licensing requirements to workers' comp mandates and the specialized coverage that protects your business from unique risks in the alcohol industry.
TABC Licensing and Insurance Requirements
The Texas Alcoholic Beverage Commission doesn't mess around when it comes to insurance. While TABC doesn't explicitly mandate specific insurance coverage amounts in their licensing requirements, they work closely with local authorities who do. More importantly, your ability to secure and maintain a TABC permit often depends on meeting insurance requirements set by your landlord, distributor agreements, and local ordinances.
For most brewery and winery operations in Texas, you'll need a Brewer's Permit (B permit for breweries) or a Winery Permit (G permit). If you plan to sell directly to consumers on-site, you'll also need additional permits like a Brewer's Taproom Permit or Wine and Beer Retailer's Permit. Each step up in your license type typically comes with higher insurance expectations from landlords and local authorities.
Most commercial leases for brewery and winery spaces in Texas require minimum general liability coverage of $1 million per occurrence and $2 million aggregate. Many landlords also require that they be named as additional insureds on your policy. This isn't just bureaucracy—it protects both you and your landlord if something goes wrong on the premises.
Workers' Compensation Insurance Requirements
Here's where Texas gets strict: workers' compensation insurance is mandatory if you have even one employee. Unlike some states with employee count thresholds, Texas requires coverage as soon as you hire your first worker—whether they're full-time, part-time, seasonal, or temporary. If you're planning to run your brewery or winery solo as the only owner-operator, you can opt out of workers' comp for yourself, but the moment you bring on help, coverage becomes mandatory.
Breweries and wineries are classified as moderate-to-high risk operations for workers' comp purposes. Your employees work around heavy equipment, hot liquids, slippery floors, and potentially dangerous machinery. Classification codes for breweries typically fall under NCCI code 2121 (Soft Drink Manufacturing) or 2131 (Brewery), with annual premium rates ranging from $2.50 to $4.50 per $100 of payroll depending on your claims history and specific operations.
Failing to carry workers' comp when required can result in administrative penalties up to $25,000, plus you could be held personally liable for any workplace injuries. Texas takes this seriously—the Division of Workers' Compensation actively investigates businesses and can shut down operations that don't comply.
General Liability and Liquor Liability Coverage
General liability insurance covers bodily injury and property damage that occurs on your premises or as a result of your operations. A customer slips on your taproom floor? That's general liability. A delivery damages a client's property? Also general liability. For breweries and wineries, standard minimum coverage is $1 million per occurrence with a $2 million general aggregate limit.
But here's the critical part: standard general liability policies specifically exclude claims related to the sale or service of alcohol. That's where liquor liability insurance comes in. If a patron drinks at your tasting room, leaves intoxicated, and causes an accident, you could be held liable under Texas dram shop laws. Liquor liability coverage protects you against these alcohol-related claims, covering legal defense costs and settlements.
Most insurance carriers offer liquor liability as an endorsement to your general liability policy, with coverage limits typically matching your GL limits—$1 million per occurrence is standard. Annual premiums for liquor liability run between $1,500 and $5,000 depending on your revenue, seating capacity, and whether you serve food. Breweries and wineries with on-site sales absolutely need this coverage—many won't find a landlord or distributor willing to work with them without it.
Product Liability and Commercial Property Insurance
Product liability insurance protects your brewery or winery if someone claims your product caused illness, injury, or damage. Contamination happens. Bottles break. Someone claims your wine made them sick. Even if the claim is baseless, defending yourself in court is expensive. Product liability coverage typically comes as part of your general liability policy, but you'll want to confirm limits are adequate—especially if you distribute beyond Texas.
For breweries and wineries, product recalls can be devastating. Product recall insurance is a specialized coverage that reimburses you for the costs of recalling contaminated or defective products—including notification costs, transportation, disposal, and lost income during the recall. While not legally required, this coverage is worth considering if you distribute widely.
Commercial property insurance protects your physical assets—your brewing equipment, fermentation tanks, bottling lines, inventory, furniture, and the building itself if you own it. A fire, storm, or burst pipe can destroy hundreds of thousands of dollars in equipment and inventory overnight. Most lenders and landlords require commercial property coverage, and many specify coverage amounts that match your equipment value or lease obligations.
For breweries and wineries, equipment breakdown coverage is essential. This specialized coverage pays for repair or replacement of mechanical or electrical equipment that breaks down due to power surges, motor burnout, or mechanical failure. Your standard property policy likely excludes these losses, but a broken glycol chiller or failed fermentation tank can cost tens of thousands to replace and halt production for weeks.
Business Interruption and Additional Coverage Considerations
Business interruption insurance covers lost income and ongoing expenses if your brewery or winery is forced to shut down temporarily due to a covered loss—like a fire or storm damage. This coverage typically comes as an add-on to your commercial property policy. For breweries and wineries, where production schedules are time-sensitive and revenue depends on consistent output, business interruption coverage can mean the difference between surviving a disaster and closing permanently.
Commercial auto insurance is required if you use vehicles for business purposes—deliveries, pickups, sales calls, or transporting equipment. Texas requires minimum liability coverage of $30,000 per person and $60,000 per accident for bodily injury, plus $25,000 for property damage. However, most businesses carry $1 million in auto liability to match their general liability limits and protect against catastrophic claims.
If you host events, tastings, or tours, you may need special event insurance or an increase in your liability limits during high-traffic periods. Some breweries and wineries purchase umbrella policies that provide an additional $1-5 million in liability coverage above their underlying general liability, liquor liability, and auto policies—offering extra protection against large claims that could exceed standard policy limits.
How to Get Started with Insurance for Your Texas Brewery or Winery
Start by working with an insurance agent or broker who specializes in breweries, wineries, or alcohol-related businesses. These operations have unique risks, and you need someone who understands the nuances of liquor liability, product contamination, and equipment breakdown coverage. A general business insurance agent may not be familiar with TABC requirements or industry-specific exposures.
Gather your documentation before shopping for coverage: your TABC permit applications, lease agreements, equipment lists and values, projected revenue, employee count and payroll estimates, and any distributor or vendor contracts that specify insurance requirements. This information helps your agent accurately quote coverage and ensure you meet all contractual obligations.
Don't wait until the last minute. Insurance applications for breweries and wineries can take several weeks to process, especially if underwriters need additional information about your operations or safety protocols. Start the insurance process as soon as you've secured your location and begun the TABC permitting process—many landlords won't finalize leases until you provide proof of insurance.
Running a brewery or winery in Texas comes with serious insurance requirements, but getting the right coverage protects your business, your employees, and your customers. From mandatory workers' comp to specialized liquor liability and product coverage, each policy plays a critical role in keeping your operation running smoothly. Take the time to understand what's required, work with a knowledgeable agent, and make sure you're fully covered before you start serving—you've worked too hard building your business to risk it all over inadequate insurance.
