Winery Stock Coverage vs. Crop Coverage: How Are My Grapes Covered?April 3, 2014
Having just been an exhibitor at the Eastern Wine Expo this past month, I was once again amazed by the changes and growth within the winery and vineyard industry. Many of our clients continue to see growth due to the interest of the consumer in local wineries and vineyards, and it excites me to see where the industry is heading.
With all of the changes and growth in the industry one question continues to come up, “Are my grapes covered?” My normal answer to that question is, “It depends.” Insurance companies handle things in different ways, so the short answer is it depends on who your insurance company is. In most cases if you are dealing with a company that has a program for vineyard and wineries, your grapes will be covered as stock, but only while they are in the bins. They can also be covered as product when they are in the barrels or bottles. However, they will not be covered while they are still hanging on the vines.
If you are looking for coverage while your grapes are on the vines you need CROP coverage. This insurance will cover your grapes while on the vine, but you need at least three years of yield records in order to acquire this coverage. If you are a new vineyard and want this coverage, start keeping records now.
The importance of having an agent that has experience in your industry is invaluable. It allows the right questions to be asked so the right coverage can be in place in the event of a claim before you need it. Whether Ruhl Insurance is your agent or someone else, make sure you know whether or not they have experience in what you do. Not all industries are created equal.
Disclaimer: Information and claims presented in this content are meant for informative, illustrative purposes and should not be considered legally binding.