The cost of insuring stored wine has grown exponentially in recent years.
Two prominent wine-trade associations, Napa Valley Vintners and Sonoma County Vintners, are currently engaging with local legislators and the California Department of Insurance about ways to make insuring finished wine more affordable, a move that would benefit
insurers get in offering coverage. Local wineries are also improving their chances of getting insurance by making landscaping and building changes to reduce potential losses. “Many wineries are storing their inventory in multiple locations. The downside is this option increases transportation and storage costs,” said Haney.
producers, consumers and distributors. A popular proposal is to create a group plan that wineries could opt into, with different prices depending on the volume and value of the wine. “The cost of storing finished, bottled wine for small multigenerational family wineries has gone up 300% in the last
“Wineries aren’t just businesses, they’re farms, community employers and family legacies.” —Robert P. Koch
He said it is a goal to have insurers recognize and reward wineries for fire prevention and risk-reduction measures. This is not the norm yet; and such measures are expensive to implement. Vintners are looking at the cost and benefits of those changes with insurers as the local industries take steps to
two years,” Michael Haney, former executive director of Sonoma County Vintners and Sonoma County Vintners Foundation, told NBb earlier this summer. “Wineries that insure their products have resorted to purchasing multiple coverage plans or extremely expensive add-on options. “I’ve heard of the wineries… buying eight different coverages for their wine.” [Editor’s note: Haney was interviewed for this story prior to stepping down from SCV at the end of July.] The good news is that in the last year the availability of wine insurance has increased. The farther the region gets from losses in the 2017 wildfires, the more interested
lower the number of wineries having to purchase insurance from the FAIR plan, which is the state fire-insurance program for high-risk properties unable to secure private insurance. “The FAIR plan typically covers the building, but not necessarily the wine in the building,” Haney explained. The mechanics of wine insurance Bottled, finished wine is typically covered under a winery’s commercial property insurance, also known as business insurance. It is usually worth so much that it is not covered as part of the standard policy but through an add-on called
40 NorthBaybiz
September 2025
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