Brewery taprooms, brewpubs, and restaurant-brewery hybrids occupy a unique space in liquor liability. These operations combine manufacturing, retail sales, and on-premise consumption under varying license types. Understanding the liability landscape for these hybrid operations ensures proper coverage and risk management.
License Types and Liability Implications
Manufacturer's License with Taproom
Primary activity is brewing, with retail sales as ancillary:
- May have limitations on on-premise consumption
- Often restricted to own products
- Food service may be limited or require separate permits
- Different states treat these very differently
Brewpub License
Combined brewing and restaurant operation:
- Full food service typically required
- May be able to sell other manufacturers' products
- Higher volume of on-premise consumption expected
- More similar to traditional restaurant liability
Dual Licensing
Some operations hold both manufacturing and retail licenses:
- Maximum operational flexibility
- Multiple compliance requirements
- Insurance needs to cover all activities
Unique Liability Exposures
Tasting Room Operations
- High-ABV products (some craft beers exceed 10% ABV)
- Flight service encouraging sampling multiple products
- Educational focus potentially distracting from monitoring
- Destination status leading to driving after visits
Product Liability
As a manufacturer, you face product liability for your beer:
- Contamination or spoilage
- Undisclosed allergens (wheat in beer, for example)
- Mislabeled ABV affecting consumption decisions
- Products distributed beyond your taproom
Tours and Events
Many taprooms offer brewery tours:
- Industrial equipment hazards
- Slip and fall risks in production areas
- Sampling during tours
- Large group management
Insurance Requirements
Coverage Needs
- General liability: Premises and operations coverage
- Liquor liability: On-premise service exposure
- Products liability: For manufactured products - critical
- Property insurance: Brewing equipment is expensive
- Equipment breakdown: Specialized brewing equipment coverage
- Business interruption: Lost income if production stops
- Contamination coverage: Recall and contamination response
Policy Coordination
Ensure policies don't have gaps or overlapping exclusions:
- GL products exclusion should not exclude your manufactured products
- Liquor liability should cover on-premise and off-premise consumption
- Property should cover brewing equipment at replacement cost
Risk Management
- 1.Server training: Same requirements as any liquor licensee
- 2.ABV awareness: Train staff on your products' alcohol content
- 3.Flight management: Protocols for multi-sample service
- 4.Tour safety: Production area protocols and waivers
- 5.Food service: Offer or require food with tastings
- 6.Transportation: Partner with rideshare, provide information
- 7.Quality control: Testing and documentation for products
Frequently Asked Questions
Do we need separate policies for brewing and taproom?
Not necessarily separate policies, but you need coverage for both operations. Some carriers offer brewery-specific packages that combine manufacturing, products liability, and taproom coverage. Others may require separate policies. Work with a broker who understands craft beverage operations.
What if someone gets sick from our beer?
This is a products liability claim if related to the beer itself (contamination, spoilage). It's liquor liability if related to intoxication from over-consumption. Your coverage needs to address both scenarios. Products liability is critical for any manufacturer.