Navigating winery insurance w/ Heidi Moore, Country Financial

With insurance costs skyrocketing, having a good understanding of the types and amount of coverage needed for wineries and vineyards is becoming essential. As a broker for Country Financial, as well as the host of the Wine Crush Podcast, Heidi Moore describes what is necessary vs. optional for winery insurance and the changes happening in the industry.

Detailed Show Notes:

Insurance trends - very volatile now, Covid supply chain issues, wildfires / other natural disasters

Rates are soaring

FL/CA - natural disasters happening more, impacting insurance

If >5 mi from a fire station, insurance premiums can be double

Winery insurance is a niche market, so it is better to have expertise

Leakage & contamination are a big issue - often wineries do not have enough coverage
General liability and liquor liability are base levels of coverage
Rest is optional - a winery should look at what will break the business if it happens
Premiums based on gross sales, inventory, and assets (e.g., buildings, barrels)
Range of costs - small wineries ($1,500-2,000/year), larger wineries ($50-60k/year)

CA - many companies have stopped writing business

Sometimes, there is state coverage for catastrophe-only coverage

Insurers often value inventory based on “final destination” (e.g., DTC vs. wholesale)

A wine library with increasing value should be looked at annually to see if coverage needs to be adjusted

Vineyard insurance is different from winery

Farm policy for an agricultural commodity (e.g., for runaway tractors)
Crop insurance, which is federally subsidized, covers annual crop value and covers against smoke taint, fire, etc…; often can insure at different value levels of the crop
Can buy specific coverage for vines and equipment in vineyards
Climate change mostly impacts crop insurance vs farm policy

Base level of insurance needed for winery w/ vineyard

Winery policy - covers tasting room, production, buildings, the commercial business
Farm policy - covers vineyard, buildings, farming operation, home autos
Depending on assets - umbrella policy to cover assets (e.g., drunk driving accidents are expensive)

When to stop buying insurance? Need a good agent who is your advocate

Value of a broker vs. direct from the insurer - can provide different options of insurance, the downside is they do not know policies as deeply

Wine Crush Podcast