Leave fireworks displays to the professionals

For many people, celebrating our country’s independence includes setting off fireworks on and around the Fourth of July.

While we may enjoy a spectacular fireworks display, remember that fireworks are explosives best left in the hands of professionals.

The use of fireworks by consumers is illegal in some states and strictly regulated in all, even where fireworks are labeled for consumer use. Adults planning to use fireworks to celebrate the holiday should first check the legal requirements of their state at USA.gov and take precautions to remain safe. Last year the Consumer Product Safety Commission reported that 60 percent of fireworks-related injuries happened during the 30 days surrounding the July 4 holiday. Between June 22 and July 22, 2012, more than 5,000 people were treated in hospital emergency rooms for fireworks injuries, and six were killed.

While the numbers vary from year to year, in the last 15 years between 8,500 and 9,800 people, on average, were severely injured each year using fireworks. That doesn’t include an additional 40 injuries reported in 2011 by the National Fire Protection Association (NFPA) from 17,800 fires started by fireworks, resulting in an estimated $32 million in direct property damage.

Between the injuries directly related to the handling of fireworks and those caused indirectly by the fires, more than half involve burns to the hands, head and face as well as loss of limbs. Most injuries and fires are associated with malfunctioning fireworks or improper use. Malfunctions can include unexpected detonations, unexpected flight paths and dangerous debris, while improper use can include igniting fireworks too close to someone, lighting them in one’s hand and playing with lit or used fireworks.

According to the American Pyrotechnics Association and National Council on Fireworks Safety, approximately 400 Americans annually will also lose sight in one or both eyes due to “malfunctioning” fireworks.

The U.S. Fire Administration reports that 92 percent of fireworks injuries involve items that are considered legal for consumers to use. In fact, approximately 1,000 of those injuries reported last year involved sparklers and bottle rockets – fireworks that are frequently and incorrectly considered safe for young children. Yet children between ages 10 and 14 are at three times the risk of fireworks injuries as compared with the general population.

Several organizations, including the NFPA, are opposed to the sale and use of consumer fireworks. More information and testimonials about the potential dangers of consumer fireworks is available at the NFPA website.

Fireworks laws vary widely, and warnings issued by the National Safety Council and other agencies advise that the best way to safely enjoy this Fourth of July is to watch a public fireworks display conducted by professionals.

Submitted by Wade Johnson for Cincinnati Insurance Companies

Craft Brewer Insurance Essentials: Liability Coverage

Liability risks can be some of the most 

expensive claims for your brewery.

Last month, I used a metaphor to highlight the importance of brewery-specific insurance (vs. standard commercial insurance) to your business and bottom line.

• The “Domestics”: The 7 Essential Business Insurance Policies (that you should already have).
• The “Crafts”: Brewer insurance essentials that protect your brewery better than the standard commercial ("Domestic") policy.
• The 4 P’s: Four specific areas of your brewery that have unique coverage needs (“Craft”) that you most need to protect.

This month, I’ll go into detail on the first “P,” or essential area of “Craft” coverage: liability.

The two most essential ways to Protect your Passion, or at least the opportunity to pursue it (patriotic pun intended), are through brewer-specific General Liability and Liquor Liability coverage.

We protect our passion (our breweries) by protecting ourselves from Third-Party Lawsuits. General Liability and Liquor Liability are essential to your business and your bank account. If you’re up and running, you should already have these, but there are important distinctions between general and brewery-specific coverage that can make or break the future of your business in the event of an unexpected loss.

Have you ever had a patron get hurt at your brewery? Or received a demand letter from an attorney representing someone injured by one of your patrons after they left your brewery? Then you know all too well how crucial these policies really are. If you’ve been paying the premiums but haven’t yet had to cash in on them, know that they’re worth every penny. With millions of liability claims filed each year, these policies protect your business and assets from unexpected loss, which is especially important because liability risks can be some of the most expensive business claims. 

What Does It Protect? A general liability policy can protect you against costs that result from bodily injury (to patrons), property damage, medical expenses, legal costs, judgments, and personal injury claims such as libel and slander. If you rent or lease your space, commercial general liability (CGL insurance) may also provide coverage for damage to that workplace.

How Much Do You Need? The typical General Liability limit is $1,000,000 per occurrence and $2,000,000 aggregate for the year.

Tip: Umbrella policies can provide relatively inexpensive added protection, kicking in when you exhaust the limits of your business liability coverage.

Costs: Vary considerably depending on the specific risks of the brewery, but are traditionally based on annual sales volume.  As your brewery grows, it’s important to up your insurance coverage so that you have enough protection. Check in with your agent each time you consider expanding or changing your business.

What Does It Protect? This type of policy will protect the brewery from liability if someone files a claim regarding the sale of alcohol, such as someone being injured in a car accident after drinking at your tasting room. 

How Much Do You Need? A $1,000,000 limit is often recommended.  Even if an establishment is not found liable, the average cost to defend a claim is $150,000, and in Colorado the maximum limit for an award regarding the over-serving of a patron is $219,750. That’s just one claim! The nature of your business and its perceived risks will help determine your needs. Work with an agent who is experienced in craft brewery coverage when seeking business insurance quotes. You’ve put blood, sweat, and tears into building your company. You need coverage that works just as hard to protect it.

Costs: Policy costs vary widely based on your brewery’s size and location and, again, is based on annual sales volume.

Why Choose A Brewery-specific Policy? Whether you have a full service bar or offer beer tastings after tours, liquor liability is essential to cover damages to persons and property caused by patrons who claim to have been over-served at your establishment. The sale of growlers/bombers adds another brewer-specific exposure that should be addressed by your liquor liability policy. Some carriers don’t understand the craft brewing world and the environments they create. They run from businesses that they consider “bars,” because of the liability that they carry and this lack of a full understanding of the business. Be sure the carrier you are with is comfortable with everything that you are.

Finding Brewery-Specific Coverage: Confused about where to start? As an independent agent and brewpub owner, I specialize in customized insurance policies for breweries of all sizes. I can assess your liability risks and recommend the appropriate coverage, balancing both your risk management and cost saving strategies.

Contact me, John Jacquat, for a free policy assessment and make sure your brewery assets are properly insured. Or email me at john@purerisksolutions.com.