Risk, Risk, Risk! Managing Brewery Risks: Keeping Insurance Costs Down Profits UP!

Transcription

1 ad-vent-ure: bold, usually risky understaking; hazardous action of uncertain outcome. Risk, Risk, Risk! Managing Brewery Risks: Keeping Insurance Costs Down Profits UP! - Objective- Endeavor to make operations a better risk Presented by John Bricker, CIC Craft brewing is Bullish in America Risk Loss Perils Probability of an injury or loss An occurrence for which an insurance company makes indemnity Exposures that cause a loss Manage/Mitigate Risks or Insure them? Kroll s Beer Garden in Berlin 1904 Exclusions An exposure that is not covered Negligence Duty Breached, Proximate Cause, Loss or Injury Occurred. Risk Management Factors Procedures, climates and situations we foster that help insurance become a backup procedure and may make something that is uninsurablesomewhat predictable or managible A few definitions Breweries are Beer Factories 1

2 Clarify Risks - potential losses: Prioritize: High, Med, Low or No.. How can I trim my insurance costs and still protect my current assets and keep pace with growth? Insure or manage I am the Risk Manager Good night s sleep: Boogie Man Effect Product Liability, Liquor Liability, Premises, Property damage liability, Advertising Liability protect yourself! Mysterious Property Insurance: Property and Machinery, Auto and Transportation and Cargo What types of property don t need insurance, what do? Don t Sell Out: Business Interruption how to keep Income Streams going during a large loss of equipment, buildings or personnel (partners, key people or staff!) 1. Required to cover it by law? 2. If Not, Should I cover this? 3. With a few more dollars can I bump coverage for Cat losses. A Few optional coverages to plug holes, and manage the rest. *Insurance is State Regulated and each state has particular laws and regulations Let s talk about Work Backwards General Liability Bodily injury - guests injured on site. Property Damage my premises damaging other property- fire, explosion. limiting access guides security and signs warnings railings check tripping risks lighting inside and out cameras and hours posted Liquor Liability The risk of over-consumption Personnel TIPS training Hours Avoiding preference to regulars Pricing, tasting limits Written liquor serving policy 2

3 Product Liability (malted beverages, glasses, clothing almost anything you make and most of what you sell) Strict liability: producer/packager or retailer has almost complete responsibility to make a safe product. Warning Labels Quality Control - Lab plating and testing Training, written procedures Recall (can be insured optionally). Hold Harmless agreements on invoices. Advertising and Personal Injury Copyright and Ad infringement including Slander (spoken) and Libel (written) Reputation damage. Research hard on names, pictures, cultures, claims, wording Edit copy and use third parties to test. (50% test) If in doubt, call or write. Vet Sponsorships charitable events, sports or any outside activities Business Auto/ Transportation/Cargo liability increases exponentially in company vehicles The company is responsible (liable) for atfault injuries or damage. Logos on the side say: We are a business and we ve got lots of insurance." Cargo is heavy Our Duty to be responsible increases. Driver s have to be checked closely and frequently; Vehicle maintenance is up to date; Heavy cargo secured. Loading and unloading are very important: final place of resting of a heavy keg. Document any driving situations. Porters transporting beer Workers Compensation (Employers Liability) / Employment Related Practices Liability of a safe workplace, adequate equipment and good environment. Work Comp assumes no-fault in injuries, medical bills are paid and loss of time is paid for temporary or permanent injuries. Can be injury or disease. Formal Safety Programs: written, safety supers, meetings, training, mentoring Records of near misses MSDS Walkthroughs, maintenance Set hours document in/out Pre-employment tests, drug testing Regulations posted Safety record stats Lock out procedures 3

4 Employment Related Practices Liability of a employer managing employee attitudes and environment in the workplace including: harassment unfair hiring and firing discrimination suits. Written employment manual Written procedures Job descriptions Correct screening and hiring practices Employee signs manual things are taken care of right away Mentoring, teams, fostering respect Correct firing practices Post employment information Real Property (Bldg.) Equipment & Boiler-Machinery The risk of losing property is obvious; the issues lie in the how and the replacement and loss of time Clear as Mud confusion over wear and tear Depreciation and replacement cost Spoilage, utility outages. Boiler/Machinery is a separate coverage/policy-the Hartford. Maintenance schedules/inspections on boilers Mechanicals are up to date Basically, there has to be an occurrence that is sudden and unforeseen and unrelated to something wearing out. Computer and media coverage/ Cyber liability Loss of data Hardware replacement Media/Data coverage policy Off site backup, Trusted personnel Computers and related control systems have scheduled maintenance Cyber Liability employee training; strict computer usage Employees realize they are agents of the Principle Business Income Protection Amount hooked to Property Income / Ex. Expense business continuation People -Keyman Life Insurance and Business overhead Disability insurance and buy/sell life insurance Prevents being in business with unskilled or unwanted partners Cross training/safety Training Continuation agreements Backup procedures/ equipment Wellness incentives / healthy lifestyles Corporate or partner buy/sell agreements Treaties with Other Breweries 4

5 Work Comp Brewers Bond Vehicle Insurance Pollution Coverage Anything that is where it's not supposed to be can considered pollution Coverage extremely limited or non-existent. Be green Be safe Situation: A small boiler explosion burns records and machinery, and damages two neighboring buildings on either side. Inventory is ruined injury to two guests and one worker. Where is my policy? xjwbb com/safety/ john@ threebarrelbrew.com Resources John Bricker, Certified Insurance Counselor Brewer/Owner, Three Barrel Brewing Company 5