Category: Food Processing Plants
NAICS CODE: 312120 Breweries
Description of Operations:
Breweries produce beer and beer products from grain that has been ground or milled, cooked, filtered, fermented, and aged. The final product is then packaged, usually in glass or metal containers, labelled, and stored or distributed to retailers and concessionaires. Operations may include a number of warehouses for storage of finished goods.
Property exposure is high due to the equipment or machinery used in processing, dust from grain that can cause explosions or act as a fuel source, and fire load from packaging materials. Ignition sources include cooking equipment and fuel, overheating and wear on machinery, and poor wiring. Fuel sources include raw materials, finished alcoholic products, and packaging materials. All machinery should be grounded to prevent static buildup and discharge. Due to its combustibility, an ammonia detection system should be in place if ammonia is used as a refrigerant. With any food product, even a small fire loss can be significant as provincial, local or federal regulations may require the disposal of major portions of stock and raw materials that have been exposed to fire, smoke, heat or water. Procedures for recycling and for the cleaning and sterilizing bottles should be in place. Separation of raw material, processing, and final product are important in controlling the exposure to fire loss. Business income exposure may be high due to the use of specialized machinery and equipment that may be difficult to repair or replace quickly.
Equipment breakdown exposure is high due to the automated machinery and equipment used in brewery operations. All machinery and equipment must be regularly inspected and maintained. If there are boilers, operational safety valves must be in place.
Crime exposure is employee dishonesty of both inventory and money. Background checks should be conducted on all employees. The inventory must be under the supervision of more than one individual so that there are checks and balances. Regular audits by an outside firm should be a standard part of procedures. Loading docks should be supervised to minimize employee theft of finished goods. If drivers pick up checks or accept any money, there is both an employee dishonesty and theft of money and securities concern.
Inland marine exposure comes from accounts receivable, computers, goods in transit, and valuable papers and records. Finished products are transported on company-owned trucks. Any overturn or collision could cause a total loss due to the fragility of the items and possible contamination. All loads must be secured. Because large trucks must negotiate narrow roads, driver selection and control is essential. Valuable papers and records exposure is due to proprietary formulas, inventory records, customer files, and contracts with suppliers and distributors.
Occupiers’ Liability exposure is light if visitor access is limited. If tours are given, the brewer should meet all life safety codes to ensure visitor safety. Good housekeeping and nonslip flooring finishes are critical to minimize slips and falls. Spills of liquids should be promptly cleaned and warning signs posted. Exits should be clearly marked and free of obstacles. Adequate interior and exterior lighting should be available in the event of a power outage. Parking lots and sidewalks need to be in good repair, with snow and ice removed, and generally level. Premises liquor liability hazards will increase if samples are handed out. There is a significant off-premises exposure if the delivery driver stocks shelves for customers.
Products exposures are moderate due to the possibility of contamination, spoilage, foreign objects in containers, or explosion from a pressurized canister. Raw materials may be imported from foreign countries. Incoming materials should be inspected before accepted. Good procedures need to be in place for sanitary working and processing conditions. The workplace
should be set up to prevent foreign substances from entering the processing area. An on-site testing laboratory is recommended to verify quality control. Pest control and the chemical applications for that purpose are key processes to evaluate. Stock dating and rotation are important factors. If by-products of the brewing operation are sold elsewhere, such as brewer’s yeast or grain for feed and vitamins, or carbon dioxide, the additional products hazards must be checked carefully. Warning labels must be in place indicating the potential damage of alcohol to unborn children. An effective recall program must be in place that can be activated immediately.
Environmental impairment exposure is from underground fuel storage, leakage or refrigerants such as ammonia and chlorofluorocarbons, and waste disposal. Outside contractors should remove waste from the site on a regular basis. If wastewater is discharged into public waterways, provincial regulations should be verified first. The presence of underground storage tanks usually means that a UST policy must be purchased.
Liquor liability exposure is limited unless alcohol is served or sold on premises. Even on tours, alcohol must be given or sold only to those who can prove they are of legal age. Employees must be trained not to serve alcoholic beverages to those who are intoxicated.
Automobile exposures are usually significant as delivery is an ongoing part of the operation. Deliveries may be made in darkness, during inclement weather, or on small roads or streets where there is little margin of error. Drivers should be assigned to routes to increase their familiarity with traffic patterns. Vehicle maintenance must be regular and documented. Drivers must have a commercial licence, and MVRs should be checked regularly. For long-haul deliveries, drivers may not exceed DOT standards for the number of hours worked per day and per week. If containers of anhydrous ammonia are being transported, they must be secured in the cargo area to prevent asphyxiating the driver due to leakage. Because many deliveries are made to grocery stores, drivers must be trained to be aware of the presence of children around and behind the vehicles.
Workers compensation exposure can result from burns caused by the cooking process or machinery and equipment, cuts or accidental dismemberment from rotating blades or moving parts on machinery, back injuries or hernia from lifting, and slips and falls from inadequate housekeeping in processing areas. All machinery must be properly guarded. Employees may be exposed to chemicals or excessive noise. Adequate safety equipment should be required for employees in processing areas. Forklifts should be equipped with backup alarms and be refueled in well-ventilated areas. As with products liability exposure, there is potential injury to workers from exploding pressurized containers, or other injury from major explosions in the workplace. Anhydrous ammonia refrigerants are poisonous when leaked into confined spaces such as coolers. Controls must be in place to maintain, check, and prevent such injury. Employees delivering goods to customers are exposed to on-road hazards and robberies.
Minimum recommended insurance coverage for Breweries:
Building, Business Personal Property, Business Income, Equipment Breakdown, employee Dishonesty, Accounts Receivables, Computers, Goods in Transit, Valuable Papers and Records, General Liability, Employee Benefits, Environmental Impairment, Umbrella, Business Auto Liability and Physical Damage, Hired and Non-owned Auto, Workers Compensation.
Other Insurance coverage to consider for Breweries :
Business Income and Extra Expense, Earthquake, Equipment Breakdown, Farmowners, Flood, Computer Fraud, Dishonesty, Disappearance and Destruction, Cyber Liability, Employment-related Practices Liability, Stop Gap Liability