Wineries offer a relaxing setting for friends to gather to learnabout and sample locally made varieties of wine. This enjoyablepastime seems harmless enough, but the process of wine-makingexposes winery and vineyard owners to a range of risks, from vineto table.

The experts at Travelers Agribusiness Division encourage agentsto ask these five questions before writing winery and vineyardcoverage:

1. Does the winery have processes in place to managecustomers who have too much to drink?

While enjoying friendly conversation and samples of wine,customers might not realize that they have had too much to drink.Therefore, agents should confirm that the winery has safeguards inplace to help protect patrons, employees and property. Measures mayinclude:

• Training for the winery staff to identify customers who appearintoxicated and to stop serving them immediately. Training programsare available for establishments that serve alcohol.
• The staff should document the occurrence, noting the date andtime.
• The winery should have a plan to get an intoxicated customerhome safely, such as confirming that the person has a designateddriver, or if not, calling a cab to drive the customer home.

(Shutterstock/sydneymills)

2. Where is the public allowed to gather on the wineryor vineyard property?

Many wineries and vineyards allow visitors to tour the grapefields and enjoy outside and inside seating areas. These measureswill help keep customers safe as they enjoy their surroundings:

• Employees should be trained to spot and address possiblehazards inside the winery and on the grounds.
• Unsupervised visitors should not be allowed in the productionfacilities or other areas that typically are closed to thepublic.
• The grounds should have suitable parking areas to enable easyand safe traffic flow in and out of the property.
• The winery or vineyard should have a response plan, in theevent someone is injured on the premises.

(Shutterstock/mnstudio)

3. What types of events are held at thewinery?

Wineries and vineyards often host a variety of events, rangingfrom smaller wine-tastings, to large wine club parties, groupdinners, and even weddings. Each event carries its own risks andexposures, therefore:

• The insurance agent should determine what events are held onthe property and offer the right insurance products thateffectively respond to these exposures.
• Customers renting out the winery facilities should have theirown event insurance, to cover costs if the event is cancelled. Mostwineries will require an upfront, nonrefundable payment for thefacilities, in case the event is cancelled because of circumstancesbeyond the winery’s control.
• Many wineries hire vendors for catering and other services.Wineries should request certificates of insurance and additionalinsured status from all vendors associated with the event.
• Vendors that provide alcohol should have liquor liabilitycoverage. Wineries should enforce a policy of always using acontract that has been reviewed by an attorney.

(Shutterstock/christian delbert)

4. Does the winery or vineyard use third-party storagefacilities?

Storage facilities play a key role in the operations of a wineryand vineyard. Before writing risks that use third-party storagefacilities, agents should confirm that the facility iswell-managed, with robust processes to protect its inventory. Anagent’s checklist should include:

• Height of storage shelves
• Fire risks and precautions
• Backup power or air vents, in the event of a power outage
• Security system or other means of safeguarding againsttheft
• Experience in full logistics management
• Process for checking identification of the pick-up/deliverypersonnel
• Properly vetted and trained drivers
• Clean, well-maintained trucks that meet specializedrequirements, such as climate control.

(Shutterstock/Maria Uspenskaya)

5. What exposures put the winery’s or vineyard’sproperty at risk?

Extreme weather, natural disasters and other threats poseenormous risks to grapes, trellises, equipment and other property.While these events often cannot be predicted, agents shouldconsider several factors when writing vineyard coverage:

• Weather patterns and trends, including heat waves, droughts,heavy rain and flooding, lightning and hail, freezing temperaturesand snow
• Potential for wildfires, insect infestation and plantdiseases
• The vineyard’s proximity to the road, driveway or parking lot:Vines that grow too close to these areas could be damaged ordestroyed by motorists.
• Equipment and other measures to safeguard against winecontamination and leakage.

It is also recommended that wineries have a written businesscontinuity plan in place that includes identifying threats or risksto the business; conducting a business impact analysis of thoserisks; adopting controls for prevention and mitigation; and testingthe plan regularly.

Wineries and vineyards have unique protection requirements toreap bountiful harvests and offer a safe and friendly wine-tastingexperience. Agents who ask the right questions will betterunderstand their customers’ needs and provide the best coveragesolutions.