an endorsement, floater or rider. A winery typically also purchases product insurance, also known as product liability insurance. This protects it against losses from contaminated or spoiled wine, as well as product recalls, according to Janet Ruiz, director of strategic communication for the Insurance Information Institute, the national trade association for the insurance industry. Wineries typically keep finished wine in multiple, onsite locations, including a wine library, wine caves, the cellar, the tasting room, and a warehouse for loading onto trucks. A winery that hosts events like weddings also keeps wine in its kitchen and event space. Some wineries rent storage space from an outside warehouse. Wherever wine is stored, the environment must be temperature controlled. Measures have to be in place to minimize the breakage of glass and/or the ballooning and explosion of cans. For example, a winery has to utilize pallets for stable transportation; and the pallets must be in good condition. It must also train its workers to perform operations like moving pallets correctly. As a result, coverage of finished wine is inherently complex—and expensive. It is much higher than the cost of coverage for a less-temperature sensitive product like a granola bar that would be stored in only two onsite locations, the factory floor and the warehouse. One of the primary factors in pricing for wine
42 NorthBaybiz
September 2025
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