By John Novaria, CEO of Amplify
They think of wine making, imagine grapes on the vine and a hearty glass
red on your table. But you probably don’t think of all the steps involved
the production of wine and the fact that these grapes – and later the finished
Product – Travel long distances to reach our taste buds.
This is where marine insurance comes into play: to protect companies along the supply chain
from the unexpected.
American Institute of Marine Underwriters (AIMU) drew a robust one
Crowd for his recent webinar “From Vine to Wine and the Fire Between” where
Participants learned about the risks of wine production and the
Coverage to reduce losses. The two-hour session is part of
AIMU is extensive and popular Educational seriesand pulled a lot of
Insurers, claims experts and brokers from the ranks of marine insurers and
One of the biggest roles we play is education, and it’s not limited to ours
Members, ”says John Miklus, President of AIMU. “Marine touches so many aspects
from companies that have a real thirst for knowledge in broader insurance
Community and we’re trying to quench that thirst. “
Pamela Schultz, Jonathan Thames and Erik Kowalewsky from Hinshaw & Culbertson opened by discussing the impact of the
2017 forest fires at the winemakers and wineries of Napa and Sonoma, where 10
Percent of the harvest was still on the vine when the fires started.
almost 20 steps are involved in wine production, including growing,
Harvest, ferment, store, cask, age, mix, fill, label
and distribute. Each offers the possibility that something will go wrong.
explained that warehouse throughput is a form of marine coverage that insures goods
in all of their physical states along the supply chain with the exception of damage
caused by the processes of converting the raw materials into the finished ones
Products. He said that policies in general are very broad and cover everyone
pointed out how marine insurance comes into play during shipping. warehouse
Throughput guidelines cover supply chains and everything that moves
Inventory against loss through:
- Extreme weather and
Natural disasters can disrupt the supply chain and even lead to product loss.
Obviously, wine from the vineyard has to get to the table, and this table can be
all around the world.
Problems / disruptions: This affects imports and exports, especially delays due to
current COVID-19 crisis.
- Lack of control: products
are sometimes sent over long distances and it is difficult to know everything
over every link in the supply or travel chain.
- Invaders: Yes, pests
It is known to get into wine and cause damage, as well as fumigation.
- CTL: constructive sum
Loss becomes a problem when the wine is stolen. Most guidelines exclude consumption
Wein, but Schultz said that didn’t stop some insureds from trying
claim it on that basis.
In 2017, forest fires in California focused on smoke protection. The smoke
that weeks after the fire has been put out can contaminate the grapes,
to make a wine inedible or worse, unrinkable.
found that claims to smoke pollution only after fermentation, after the
Wine has been tasted and the producer has to prove damage with scientific evidence
and inform about a possible loss within 60 days. However, he said that there is
Inexpensive processes that winemakers can set up in advance to alleviate the problem
The speakers discussed the difference between crop insurance and the entire farm
Income protection, both of which offer limited protection to the producer. harvest
Insurance is not a 100 percent compensation product; it only covers the grapes
Pre-harvest, there will always be a gap. The limits are based on previous returns
It is difficult to expand the borders in the first few years.
As a result of the 2017 fires in Oregon, a winemaker now needs
its producers are covered by crop insurance and pay half the premium.
The protection of agricultural income protects against loss of income, but does not protect
certain cultures because it is not a real estate policy. Claim this policy
The insured person has to prove that the agricultural income from the winery has decreased
to reject the grapes.
were invited to vote on their favorite wine, and the selection was overwhelming
Red with 70 percent. White received 17 percent of the vote and Rose 12 percent.
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