Running a brewery or winery comes with unique risks. You've got heavy kegs, wet floors, bottling equipment, and fermentation tanks—all of which create potential for workplace injuries. That's where workers' compensation insurance comes in. If you have employees, you're almost certainly required to carry it, and understanding how it works can save you thousands of dollars while protecting your team.
Here's what surprises most brewery and winery owners: workers' comp isn't just about covering medical bills when someone gets hurt. It protects your business from lawsuits, helps injured employees get back to work faster, and in many cases, it's the law. Let's break down what you need to know.
When Do You Need Workers' Comp for Your Brewery or Winery?
The short answer: as soon as you hire your first employee. Most states require businesses to carry workers' compensation insurance once they have at least one employee on payroll. In California, for example, even a single-employee operation must have coverage. Some states set the threshold higher—maybe three or five employees—but if you're running a brewery or winery with a tasting room, production staff, or delivery drivers, you're almost certainly past that limit.
Don't confuse employees with contractors. If you hire a part-time taproom server or a seasonal harvest worker as a W-2 employee, they need to be covered. Independent contractors generally don't require coverage under your policy, but misclassifying employees as contractors can land you in serious legal trouble. When in doubt, check with your state's labor department or an insurance professional.
Failing to carry workers' comp when it's required can result in hefty fines, criminal charges in some states, and personal liability for any workplace injuries. It's not worth the risk.
Understanding Class Codes and How They Impact Your Premium
Insurance companies use classification codes to determine your premium, and getting the right code matters. Breweries typically fall under NCCI (National Council on Compensation Insurance) class code 2111, which covers breweries, soft drink production, and related operations. Wineries, on the other hand, are generally classified under code 2143—"Winery and Drivers." This code includes operations like bottling (except carbonated liquids) and incidental fruit preserving.
Why does this matter? Because each class code has a different base rate tied to the risk level of that industry. Higher-risk operations pay more. If your employees are driving delivery vehicles, operating heavy machinery, or working with hazardous materials, your classification—and your premium—will reflect that.
Keep in mind that 35 states use the standard NCCI system, while 10 states have modified it, and five states—California, New Jersey, New York, Delaware, and Pennsylvania—have their own systems entirely. Make sure your insurance agent is using the correct code for your state and your specific operations. Misclassification can lead to overpaying or, worse, coverage gaps.
What Does Workers' Comp Actually Cost?
On average, workers' compensation insurance costs about $94 per employee per month, or roughly $1,128 per year. But here's the thing: your actual cost could be significantly higher or lower depending on several factors.
First, premiums are calculated based on your payroll. Insurers typically charge a rate per $100 of payroll. For bars and breweries, the average rate hovers around $1.50 per $100 of payroll. So if your annual payroll is $200,000, you'd pay roughly $3,000 per year. Smaller operations with payrolls under $300,000 often pay around $62 per month, and some policies for very small teams start as low as $13 per month.
Second, your claims history plays a huge role. This is measured by your experience modification factor, or X-Mod. An X-Mod of 1.0 is average. If your X-Mod is above 1.0—meaning you've had more claims than expected—your premium goes up. If it's below 1.0, you get a discount. A brewery with a strong safety record and few claims might have an X-Mod of 0.85, saving them 15% on premiums. Conversely, a business with frequent injuries could see their X-Mod climb to 1.3 or higher, dramatically increasing costs.
Location also matters. Some states have higher workers' comp rates than others. For example, beer, wine, and soft drink distributors in Washington saw a 16% average rate increase in 2025, reflecting state-specific market conditions and regulatory changes.
Common Workplace Injuries in Breweries and Wineries
Understanding the risks helps you prevent claims and keep premiums down. The most common injuries in breweries and wineries include keg-related accidents, back injuries, and slip-and-fall incidents.
Kegs are heavy—a full half-barrel keg weighs about 160 pounds. Dropping one on your foot can result in fractures, surgery, and months of recovery. Back injuries are equally common, especially when employees lift heavy crates, barrels, or cases without proper technique or equipment. And wet floors? They're practically guaranteed in a brewery or winery environment. Spilled beer, water from cleaning, or condensation near fermentation tanks create serious slip hazards.
Beyond physical injuries, there are also repetitive strain injuries from bottling line work, burns from cleaning chemicals or hot equipment, and cuts from broken glass. The good news? Most of these injuries are preventable with proper training, safety protocols, and equipment like non-slip mats, lifting aids, and personal protective gear.
OSHA Recordkeeping and Compliance
If your brewery or winery has 10 or more employees, you're required to keep records of serious work-related injuries and illnesses for five years. You must also post OSHA Form 300A—your annual summary of injuries and illnesses—in a visible location by February 1st each year.
Larger operations face additional requirements. If you have 100 or more employees and fall under NAICS code 3121 (beverage manufacturers), you must electronically submit Form 300 and Form 301 data to OSHA by March 2nd each year. Missing these deadlines can result in fines and increased scrutiny from regulators.
Compliance isn't just about avoiding penalties. Tracking injuries helps you identify patterns and address safety issues before they become serious problems. If you're seeing multiple back injuries, maybe it's time to invest in better lifting equipment. If slip-and-fall incidents are frequent, non-slip flooring or better drainage might be the solution.
How to Get the Right Coverage and Keep Costs Down
Shopping for workers' comp? Start by finding an agent who specializes in breweries, wineries, or hospitality businesses. They'll understand your unique risks and can help you get the right class code and coverage limits. Don't just go with the first quote you receive—compare at least three insurers.
Once you have coverage, focus on safety. Implement a formal safety program that includes employee training, regular equipment inspections, and clear procedures for high-risk tasks like keg handling and chemical use. Encourage employees to report near-misses and minor injuries immediately—addressing small issues prevents bigger claims down the line.
Your X-Mod is your most powerful lever for controlling costs. Keep your claims history clean by investing in safety and returning injured workers to light-duty roles as soon as medically appropriate. Even small improvements in your X-Mod can translate to thousands of dollars in savings each year.
Workers' compensation isn't optional, and it's not just a box to check. It's a critical part of running a safe, sustainable brewery or winery. Get the right coverage, prioritize safety, and keep your claims history clean. Your employees—and your bottom line—will thank you.
