Craft breweries, with their artisan ales and neighbourhood charm, are more than a small business trend—they're a culture, a community hub, and a lifestyle. Running one, however, is far from simple.
For Sean Murray, VP of business development at Bauld Insurance, insuring these breweries isn’t just a job – it’s a passion.
“People say it’s best to sell things where you really enjoy the end product,” he told Insurance Business. “And I’m a big fan of craft beer. I really enjoy working with this industry.”
And while Murray is a huge advocate for the craft beer world – he’s also upfront and honest about the unique set of challenges that come along with the role. Operating as both manufacturers and hospitality providers, breweries face hurdles not typically covered by standard policies.
“As a customer, if they’re consuming alcohol on-site that is more than 40% of your total revenues, you fall outside of that appetite for most general insurers,” added Murray. This forces breweries—particularly smaller microbreweries without significant wholesale revenue—to turn to high-risk liquor markets, where the policies often lack adequate manufacturing protections.
This dual nature of brewing—part science, part experience—is where Murray’s expertise shines. He told IB that smaller breweries, often community-focused operations, are disproportionately affected by high insurance premiums.
“Brewers may opt for just taking basic coverages to reduce costs,” he noted. And an equipment breakdown or contaminated product could lead to crippling financial loss.
One standout feature of Bauld’s tailored approach is its focus on stock valuation. Standard policies undervalue brewing stock by covering only the cost of raw materials, but Murray’s program values stock at its selling price, even while in production.
“If you don’t have this enhancement, you’re only going to get compensated for the barley and hops, not the loss of production time,” he explained. For breweries, where some batches age for months, this distinction can mean the difference between bouncing back from a loss or shutting down entirely.
In addition to financial resilience, Murray has been instrumental in redefining how insurers view breweries with on-site consumption.
“We worked with our insurer to differentiate a taproom from a traditional bar or nightclub,” he said, emphasizing key distinctions like limited hours, lack of hard alcohol sales, and an absence of nightclub activities.
But risk management goes beyond securing the right policy. Murray is deeply involved in helping his clients implement best practices, from quality control to liquor policies.
“Scheduled maintenance, cleaning, and robust quality control are essential,” he told IB.
And, despite the challenges, Murray takes pride in the collaborative relationships he’s built with breweries. He credited one Nova Scotia microbrewery for helping him refine Bauld’s coverage offerings.
“Having a good understanding of how their actual business works and tailoring this package back... it was a great experience,” he said. “Probably a couple of beers had all along the way.”
His work is more than just business—it’s a partnership that celebrates the spirit of craft brewing while safeguarding its future. As Murray put it: “At the end of the day, the well-managed breweries with appropriate risk management practices will certainly have a better job at getting affordable coverage.”
