PRODUCT: Brewery & Winery Program
COMPANY: NSM Insurance Group, underwritten by AIG
BEST RATING: A (Excellent), size XV
AVAILABILITY: Coverage is available through appointed independent agents.
FOCUS: In 2013-2014, U.S. wineries experienced a 6.3% increase in production, according to Wines & Vines magazine. Such growth has called attention to the unique insurance needs of wineries, breweries and distilleries that go beyond what the liquor liability insurance market traditionally offers, as reported last July on IAmagazine.com. In response, NSM Insurance Group has launched a brewery and winery program that its leaders believe will meet these challenges. The program provides coverage exclusively for wineries, breweries and brew pubs.
“This new program evolved from a monoline liquor liability program that started to see brew pub submissions,” says Geoffrey Pratt, program director, noting that NSM spent nine months developing it. The firm researched industry offerings, spoke to customers and brokers, and developed policy forms to address specific needs a standard BOP or commercial package does not provide.
“The Brewery & Winery Program will provide a comprehensive insurance program tailored specifically to the needs of breweries, wineries and distilleries, filling vital coverage gaps,” Pratt says, adding that independent agents will be able to “write the complete account, including workers compensation coverage.”
UNDERWRITING: Basic coverages available include property, general liability, crime, equipment breakdown, inland marine, automobile, cyber liability and umbrella.
A number of specialized coverage endorsements are available. Enhanced GL coverages are available at a charge of 2% of the premium or $250. The property broadening endorsement is available at a $1 million blanket limit for a number of added coverages and enhancements or additions to basic coverages. A premium charge of $650 applies for one location and lowers for additional locations. The brewers and vintners property in transit endorsement/refrigeration breakdown endorsement covers loss in transit to perishable stock due to loss of refrigeration, and premium varies depending on exposure. The beer leakage endorsement provides limit options from $50,000 up to $250,000 with $500-$10,000 deductibles, providing coverage for beer leakage.
Several endorsements are available for no premium charge: The winery property endorsement provides $25,000 in coverage for trellises, outdoor growing vines and packaging errors; the valuation of wine stock endorsement helps define the value of wine stock; and the brewers and vintners spoilage contamination endorsement provides $500,000 in coverage. Policyholders can purchase additional coverage for loss of perishable goods at their premises.
NSM is also able to write new ventures to fit the specific exposure of each business. The company can provide $1-2 million for all liability lines and up to $5 million in umbrella limits. There is no set maximum for property values, but Pratt says it is best that values at any location remain less than $30 million for optimal performance. Policies typically last one year, although short-term offers may be available for concurrency purposes.
MINIMUM PREMIUM: None.
TARGET: NSM targets large and small wineries, distilleries and craft breweries, including microbreweries, brew pubs and regional craft breweries.
COVERAGE TERRITORY: Now available in 45 states, but NSM will continue rolling out the program until it is available nationwide. Approval is currently pending for specialized forms in Florida, New York, Texas and Virginia.
CONTACT: Matthew Walters, program underwriter; NSM Insurance Group, 555 North Lane, Suite 6060, Conshohocken, PA 19428; 610-941-9877, ext. 248.
Ronimarie Acord is an IA contributor.
