Microbrewery Finance & Insurance
One of the essential elements of being able to set up your own microbrewery is getting access to funding.
There are a number of finance options for start up breweries which we do go through on our Setting Up A Microbrewery Course as well as expanding their brewery operations. We cover aspects of the brewery design and finance in another one day course. A key aspect for any new or existing brewery trying to gain finance is the quality of their business plan. On our one day course we look with Close Brother Finance at examples of how to structure your business plan in a way that will tick the boxes of potential funders and give your application for funds the best change of success. Potential funding sources for a brewery are:
- Asset backed finance
- Start up loans through organisations such as Responsible Finance the Community Development Finance Association (CDFA). These could be invaluable in providing both start up and development finance for microbreweries
- Don’t ignore friends and family
- Brewery Bank (coming soon)
Brew-Schools Brewery Bank
Here at Brew-School we realise that it can often be the initial seed funding for new brewery ventures that can be the hardest for new breweries to access. This is why we are working with leading brewing experts to develop a Brewery Bank. This Bank will take a flexibly approach to funding start up and expansion plans by existing breweries in a way that suits your business plans. Finance will be available in a number of ways from offering finance in return for an equity stake to loan finance. The board of the brewery bank will have a wealth of brewing experience which along with the funds will be able to guide your new brewery or the expansion of your brewery to the place where you need it to be. Think Dragons Den of the brewing world but with the Dragons being on your side.
Breweries for sale
If you are looking at investing in a brewery there is an increasing market in second hand breweries for sale.
If you are looking a buying a brewery now or in the future check out the brewery for sale section in our news blog.
Insuring your microbrewery
Having successfully financed and set up a microbrewery every brewery owner whether big or small know they needs this. Microbrewery insurance is a necessary evil; some key things to look for in the cover when insuring your brewery are:
1 Use a specialist brewery insurance broker. It goes without saying that an expert insurance broker will not only have access to better microbrewery insurance products but they will be more able to advise individual brewery owners what level of cover is appropriate.
2. Do you or are you looking to export beer? In which case do you need a policy that covers your beer stock that is being exported overseas
3. Does your microbrewery insurance cover you against loss of your beer stock on 3rd party premises?
4. We all no that one of the big problems of brewing cask beers is getting all your casks back. So does the insurance policy cover your beer casks and their loss?
5. Does your microbrewery have visits from members of the public on brewery tours and does it put on events. Therefore, do you need public liability insurance to cover potential claims by members of the public whilst on brewery tours?
7. Is your microbrewery covered in the the event of equipment failure?
8. Are you just a small craft brewery starting out. If sos you probably don’t want the level of brewery insurance cover that the big boys require. Our specialist brewery insurance brokers will evaluate he cover and get the best quote for your needs.
9. If you employ people in your microbrewery you will need liability insurance for your brewing and other staff
10. Do you have product liability insurance? Remember selling beer to the public means that you have potential large liabilities should somebody fall ill as a result of consuming your product. Make sure you cover your brewery against this liability.
11. Does you microbrewery insurance cover your casks at third party locations i.e. pubs?
12. Will your brewery insurance company pay up for the loss of a brew which is down to contaminated yeast?
13. Will your microbrewery insurance cover your beer during transit in the UK and overseas?
14. Increasingly for many microbreweries a big part of their business is providing beer and a bar for outside events such as beer festivals and farmer markets. You and any staff need to be covered for these events and any potential off sales.
How to obtain specialist microbrewery insurance?
Have a look at our guide on what to look out for when you look to get your brewery insured. Clearly you don’t want to take the risk of being under insured or not covered for specific items. At the same time paying out extra on your brewery insurance premium for no benefit is costly. Using an experienced specialist brewery insurance broker should enable you to get the insurance product that’s right for your brewery.
Here is a list of microbrewery insurance brokers providing specialist policies:
John Morgan Partnership Ltd
Are you a specialist brewery insurance broker and would like to be featured on our comprehensive brokers list then email us at: email@example.com