Fires and Wineries

We are all very familiar with the fires which were running amok in SoCal as well as Napa and Sonoma Counties in NorCal. Those fires devastated many residential homes as well as businesses. Today we are looking at only one aspect of that fire damage: Wineries.

Although I cannot vouch for all wineries, you can bet they probably have insurance. Is fire damage coverage provided under an insurance program, yes it is. But to what extent is damage to the grapes covered concerning certain key issues like:

1. Smoke damaged grapes - microscopic smoke particles taints the taste and unfit for wine

2. What would be considered recoverable stock - how will recoverable be defined

3. How will those losses be calculated - will 'other' growers grapes be used, what about

business interruption

4. Will there be reputational damage - how will this be proven and is the wine 'safe'

5. Are breaks in the supply chain covered - what about the other wineries which rely on your

grapes for their supplies, contingent liability

Didn't think a fire claim would be that intense eh? Well it is and the future determinations of these important questions can set/alter/modify Winery insurance for many years to come. For those of us in the field ( no joke intended ), how these issues will be handled is going to be very interesting.

Read the full article HERE.