Distillers (TTB): Navigating Insurance Requirements and Beyond
The craft distilling industry is booming, but with success comes unique risks. Distillers face a complex landscape of regulations, operations, and potential liabilities. Understanding your insurance needs is essential to protect your distillery and its future.
Federal Requirements: The TTB Bond
Before you even open your doors, the Alcohol and Tobacco Tax and Trade Bureau (TTB) requires a Distilled Spirits Plant (DSP) Bond. This isn’t insurance in the traditional sense, but a financial guarantee that you’ll pay your federal excise taxes on time.
The bond amount depends on your production volume. Even if you’re starting small, it’s crucial to understand this requirement to avoid any delays or legal issues.
Beyond the Bond: Essential Insurance Coverages
In addition to the TTB bond, several insurance policies are vital for distillers:
* **Product Liability Insurance:** Protects you from claims of bodily injury or property damage caused by your distilled spirits.
* **Liquor Liability Insurance:** Covers claims related to injuries or accidents caused by intoxicated patrons at your tasting room or events.
* **Property Insurance:** Protects your distillery building, equipment, and inventory from damage due to fire, theft, vandalism, and other perils.
* **Business Interruption Insurance:** Covers lost income and expenses if your distillery is forced to close temporarily due to a covered event.
* **Workers’ Compensation Insurance:** Provides coverage for employees injured on the job (required in Oregon).
Specialized Coverage for Distillers
Consider additional coverage to address specific risks in the distilling industry:
* **Equipment Breakdown Insurance:** Protects against mechanical failures or breakdowns of your distillery equipment.
* **Spoilage Coverage:** Safeguards against loss due to spoilage or contamination of your product.
* **Tank Leakage Coverage:** Provides protection in case of leaks or spills from your storage tanks.
Prineville Insurance: Your Partner in Distillery Protection
At Prineville Insurance, we’re well-versed in the unique insurance needs of distilleries. We’ll guide you through the complex regulatory landscape, help you assess your risks, and customize a comprehensive insurance plan to protect your investment. Whether you’re starting a small craft distillery or expanding an established operation, we’re here to support your success.
Don’t let unforeseen events disrupt your distillery’s growth. Contact us today for a personalized insurance consultation and raise a glass to a secure future.
