NAICS CANADA CODE: 812930 Parking Lots and Garages
Description of Operations:
Wineries grow or purchase grapes and process them into wine. Some wineries still use manual labour to harvest grapes while others use mechanical harvesters. The grapes are fed through a destemmer and crushed. Skins may be removed or left on during fermentation, depending on the type of wine being produced. Sugar, yeast, carbon dioxide or flavorings may be added. Fermentation can be done in oak barrels or stainless steel tanks. Once fermentation is completed, the wine is strained, bottled and labelled for sale.
Property exposures are from machinery, heating and refrigeration equipment. Grapes, wine in process and stored wine are very sensitive to changes in temperatures. Temperature-monitoring devices should be mandatory and installed in most processing and storage areas. Even a small fire can result in mandatory destruction of all wine in process as well as stored wines due to the possibility of smoke contamination. Processing areas should be separated from storage areas. Product that is ready for shipping should also be kept in a separate area, especially if a required tax stamp has already been affixed.
Crime exposures are from employee dishonesty and money and securities. Some wineries offer tours and operate retail stores, resulting in high amounts of cash and credit card transactions. Wine can be expensive and targeted by both employees and thieves. Pre-employment background checks should be done on all employees having access to the inventory.
Inland marine exposures include accounts receivable, computers, goods in transit, mobile equipment, and valuable papers and records. Equipment includes farming equipment such as harvesters. Records include purchases, inventory, quality control, and sales information. The goods in transit exposure is significant as there is no salvage in the event of an accident.
Crop exposures are high because growing grapes are susceptible to damage by hail, wind, flood, snow, frost, winterkill, lightning, viruses, bacteria, fungi, insects, animals and weeds. Vines are often grafted from much older vines and take years to re-establish if they are killed.
Occupiers’ Liability exposures are minor due to limited public access. If there are retail sales, tours, restaurants, wine-tastings or bed and breakfast inns, the exposure increases. The serving of alcoholic beverages to customers can impair motor abilities and increase the likelihood of trips, slips or falls. Spilled drinks should be cleaned up promptly. Floor coverings must be in good condition with no frayed or worn spots on carpet and no cracks or holes in flooring. Parking lots and sidewalks need to be in good repair, with snow and ice removed, and generally level and free of exposure to slip and falls.
Products liability exposures normally result from contamination, spoilage, foreign objects in containers, or improper labelling of contents. Effective procedures are required to ensure sanitary working and processing conditions. The workplace must meet all federal and provincial specifications and be arranged so that foreign substances do not enter processing areas. Controls must be in place to prevent contamination from exposure to chemicals used to contain insect or rodent infestations, such as insecticides and pesticides. An effective recall program that can be activated immediately must be established.
Liquor liability exposures are from the manufacturing of alcoholic beverages. The exposure increases if there are retail sales, tours and other events where wine is sold directly to the consumer. All employees who serve wine to customers must be trained in recognizing signs of intoxication. A procedure should be in place to deny serving intoxicated patrons. Online sales present an even greater exposure because of the possibility of products being purchased by underage individuals.
Environmental impairment liability exposures can be high due to the potential for air, land or water pollution from the use of agricultural chemicals and pollutants such as fertilizers, herbicides, pesticides, refrigerants, motor vehicle fuels and solvents. Storage, use and disposal of all chemicals must be documented and meet all federal or provincial standards.
Automobile exposures can be extensive. During planting and harvest times, equipment must be moved from field to field. The equipment is awkward and slow-moving, and often must travel over winding, rural roads and highways. Vehicle condition, maintenance and storage, along with driver selection and prior records, are the main items to consider. The use of All Terrain Vehicles (ATVs) and similar mobile equipment/auto type vehicles is common.
Workers’ compensation exposures can be moderate or significant, depending on the degree of mechanization. The more mechanized the manufacturing process, the less likely that employees will slip, fall or sustain hernias or other lifting injuries, but the more likely they are to be injured by the machinery, particularly during destemming and crushing operations. Operations that rely on manual labour may hire workers who may be seasonal, speak another language, and lack adequate training and supervision. Exposure to farm chemicals and organic dust can lead to respiratory issues.
Minimum recommended coverages insurance for Wineries :
Buildings, Business Personal Property, Spoilage, Employee Dishonesty, Crop Insurance, Accounts Receivable, Computers, Goods in Transit, Mobile Equipment, Valuable Papers and Records, General Liability, Employee Benefits, Environmental Impairment Liability, Umbrella Liability, Automobile Liability and Physical Damage, Workers’ Compensation
Other insurance coverage to consider for Wineries :
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