CONTRACT
BREWING
TWO PARTIES. ONE FACILITY. SEPARATE EXPOSURES.
Contract brewing and alternating proprietor arrangements create coverage questions that neither a standard brewery policy nor a generic commercial policy fully addresses. The brand owner holds product liability for beer in the market under their label. The host brewery owns the facility and equipment. When both are operating in the same space, the coverage for each party needs to be structured with the arrangement in mind.
The brand owner's product liability follows the beer into the market regardless of where it was brewed.
The host owns the facility, the tanks, and the equipment — and carries property and liability for the production environment.
When guest brewers use the space, questions about who is responsible for what need answers before a claim arises.
Alternating proprietor arrangements are TTB-regulated, and each brewer holds separate license responsibility for their product.
SELECT YOUR ROLE IN THE ARRANGEMENT.
Coverage questions differ depending on whether you are the brand owner or the host brewery. Select your role to see the key considerations. A general illustration to frame a review — not a quote or policy interpretation.
- Product liability for the beer in the market under your brand
- Additional insured status on the host brewery's policy
- Coverage for the recipe, formulation, and brand identity
- Distribution and auto exposure where you self-deliver
- Whether your program addresses beer produced off-site
HOW THE PROGRAM IS BUILT FOR EACH PARTY.
Product liability for the beer in the market under the brand owner's label, regardless of where it was physically brewed.
The host brewery's facility, tanks, and equipment covered under its own program, with attention to guest brewer use.
General liability for the production environment reviewed in light of who is operating and when, so gaps between the two parties' policies are addressed.
Workers compensation for each party's staff plus distribution and auto exposure where either party self-delivers product.
TELL US ABOUT YOUR BREWING ARRANGEMENT.
Complete the form and a Kelly Insurance Group specialist will follow up to begin your contract or alternating proprietor review.
EVERY KIND OF SHARED BREWING STRUCTURE.
STRAIGHT ANSWERS ON CONTRACT BREWING COVERAGE.
WHAT IS CONTRACT BREWING INSURANCE?
Contract brewing insurance addresses the coverage questions that arise when a brand owner has beer produced at another brewery. Both the brand owner and the host brewery carry exposure — the brand owner needs product liability for the beer in the market, and the host brewery needs property and liability coverage for production in a shared or guest arrangement.
WHAT IS AN ALTERNATING PROPRIETOR ARRANGEMENT?
An alternating proprietor arrangement is a TTB-regulated brewing structure in which two licensed brewers use the same physical brewing facility at different times. Each brewer is responsible for their own product and holds their own license, but the shared facility creates overlapping property and liability questions.
WHO NEEDS PRODUCT LIABILITY — THE BRAND OWNER OR THE HOST BREWERY?
Generally both. The brand owner holds liability for the product in the market under their brand. The host brewery carries its own liability for production and the facility. How these interact is a key part of structuring coverage for either party in a contract or alternating arrangement.
DOES THE BRAND OWNER NEED THEIR OWN POLICY?
Usually yes. A brand owner whose beer is contract-brewed generally needs their own product liability and may need additional insured status on the host brewery's policy, or their own separate program depending on how the arrangement is structured.
IS THE HOST BREWERY'S PROPERTY AND EQUIPMENT COVERED?
The host brewery's property and equipment are covered under its own program. When a guest brewer is using the facility, the property and liability questions around who is responsible for what are an important part of reviewing both parties' coverage.
HOW DO I GET A QUOTE FOR A CONTRACT OR ALTERNATING PROPRIETOR ARRANGEMENT?
Completing the form on this page gathers the structure of the arrangement, production volumes for each party, the facility and equipment details, and the beer in the market so the account can be reviewed for both the brand owner and host brewery side.
COVER BOTH SIDES OF THE ARRANGEMENT.
Kelly Insurance Group builds specialty programs for contract brewers, alternating proprietors, and the host breweries that work with them. Start with a conversation or the form above.
The availability of coverage and eligibility for coverage can depend on numerous factors. We cannot guarantee that all customers, individuals, and businesses looking for coverage will be successful in these efforts when contacting our team. All policy coverages and terms need to be fully reviewed by the respective consumer to ensure the coverage asked for is what is specifically being quoted or provided by any insurance policy. Insurance Policies, Coverage Changes, and their terms and conditions are not bound or altered until written confirmation is provided by one of our licensed team members or underwriters. This page does not offer legal advice, legal opinions, or policy interpretations. Rather, this page is meant as a resource to help provide customers and insurance consumers with additional considerations that may help in their insurance buying or pursuit of insurance information. Kelly Insurance Group does not employ or direct attorneys.
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Disclaimer: Coverage availability and eligibility may depend on underwriting review, carrier guidelines, policy terms, state requirements, business operations, risk characteristics, and other information provided during the application or quoting process. Kelly Insurance Group cannot guarantee that every individual, customer, organization, or business seeking coverage will qualify for, receive, or successfully place insurance coverage. All policy coverages, exclusions, conditions, limits, endorsements, and terms should be carefully reviewed by the consumer, insured, or applicant to confirm that the coverage requested is the coverage being quoted, offered, or provided. Insurance coverage, policy changes, endorsements, cancellations, and other policy terms are not bound, changed, confirmed, or altered unless and until written confirmation is provided by a licensed Kelly Insurance Group team member, the applicable insurance carrier, or an authorized underwriter. This page is provided for general informational purposes only and does not provide legal advice, legal opinions, insurance coverage opinions, or policy interpretations.