Risk & Business Magazine Benson Kearley IFG Magazine Winter 2018 - Page 29

CRAFT BEVERAGE INDUSTRY UPDATE W ith the new grocery and wholesale channels in Ontario increasing shelf space for brand labels, competition is squeezing margins for the craft brewery industry. But creatively, craft breweries are expanding their space in the hospitality industry and effectively finding new sources of revenue. By adapting their production facilities to accommodate concerts, festivals, corporate events, and weddings, they can enhance product brand with interactive customer experience. Although this model promotes brand and additional revenue, it also has attendant risks not associated with product manufacturing and distribution. Hosting any social function involving the sale of alcohol has risk management and insurance implications. If not addressed, the company may be assuming financial and reputational risks. The stakeholder channel has now been expanded to include guests/invitees, 3rd party providers, caterers, DJs, bands, and florists. Employees now have additional responsibilities in not just selling products, but serving alcohol. The brew tour bus/limos bring in a very “missioned” social experience that must be managed. Typical bookings of birthdays, retirements, and celebrations of life are reservations only without a formal contract, similar to restaurants. • • When there is a facility rental, a standard contract should be used to include the requirement for the renter to carry their own event liability. Further, evidence of coverage should be provided showing the facility as an additional insured Facility should disclose all business activities to their own insurer, comply with any subjectivities and loss control recommendations to ensure integrity of their own coverage • Staff serving alcohol are Server Intervention Program (S.I.P.) trained • Premise housekeeping – interior and exterior properly kept in clean condition to mitigate spills that lead to slip’n falls, with increased patron traffic • Compliance with fire codes, liquor permits and health safety (e.g. maximum number of people) • Brew Tours – elevate guests’ risks. Make sure tour organizers have proper liability coverage Consider all the items above and create a risk management program around these events. Event revenue can be a nice alternative for a business in this growing market. Do not shy away from the ambiance of hosting a great event in a great space. Do your due diligence and manage the risk properly to protect what you have worked so hard to build. Be sure to contact your broker if this is a path you would like to go down, or contact myself directly. As we always look at unique ways of offering a customized risk management & financing option, we have created with the help of Signature Risk LIVE an exclusive Event Liability policy. This provides two important things: 1. The ability for a winery, brewery or distillery to separate their operations liability from the event liability exposure and have customized insurance coverage to host various events all year long 2. Providing the ability to sell event insurance to their customers, at a profit, as a value added service and introduce a new revenue steam for their business Cheers, Joshua Kearley Founder/Program Specialist Beverage Protect powered by BKIFG BY: JOSHUA KEARLEY PROGRAM SPECIALIST, BEVERAGE PROTECT POWERED BY BENSON KEARLEY IFG Contact him today at jkearley@bkifg.com or at 1-844-213-2469 29