MBG Con Goes Virtual - Offering Three Days of Online Learning

Technical Brewing, Business & Communication | Oct 5, 6 & 7

FRAMINGHAM, Mass. -- (9/16/2020) The Mass Brewers Guild, a non-profit trade association dedicated to protecting craft breweries across Massachusetts, today announces that MBG Con, the organization’s 3rd annual technical brewing and business conference, will shift to an online model starting Monday, Oct. 5 and will run through Wednesday, Oct. 7, 2020. 

A lineup of renowned experts, including Rob Tod, founder of Allagash Brewing Co., Matt Stinchfield, Safety Ambassador of the Brewers Association, Dr. J. Nikol Jackson-Beckham, Diversity Ambassador for the Brewers Association, Jim Koch founder of Boston Beer and Dan Kenary, founder of Mass Bay Brewing Co., will share best practices, hard lessons learned, and strategies for survival during these challenging times. 

This year’s conference will have three main areas of focus; technical brewing, business, and communication, covering everything from SOPs to bookkeeping, paid advertising strategies and yeast management. Attendees can choose the day, or track, that best suits their role within the industry, or they can attend the entire conference. 

“It’s been a difficult few months for the brewing community, to say the least,” says Katie Stinchon, executive director of the Mass Brewers Guild. “Despite the fact that we all can’t be together -- learning, listening, and being inspired by fellow brewery owners and colleagues is the best way to survive this pandemic. Even now, with all of the heightened competition, our brewers are ready to share how they are navigating these waters -- what’s working, what’s not – in order to support one another. It’s what makes the brewing industry so unique and amazing to be a part of.” 

Tickets are just $25 a day for Mass Brewers Guild members, and $50 for non-members. All ticket proceeds support the Mass Brewers Guild and its work to protect and promote the craft beer industry across the Commonwealth. Due to festival and event cancellations, this is the only fundraiser slated for the association this year. The event hopes to raise $7k for the Mass Brewers Guild. 

“We wanted to make this event as accessible as possible for our beer family,” says Stinchon. “One of the great perks of a virtual event is that we can draw experts and attendees from all over the country. Our goal is to ensure that the brewing community is armed with the knowledge and skills it needs to remain successful, independent, small businesses that continue to stimulate the economy, revitalize downtown communities, and employ locals.”

All sessions offer ample time for Q&A and ticket holders will receive supporting materials and the recording of each session for later viewing. MBG Con is made possible thanks to presenting sponsor, Bernstein Shur and supporting businesses ABS Commercial, Acadia Insurance, arryved, Bowditch, Cavallo & Signorello Insurance, Drink Tanks, Four Star Farms, InTouch Labels, Micro Matic, Omega Yeast, Petainer and Solar On Earth. All of these businesses are associate members of the Mass Brewers Guild and help make our educational programs possible.  

To view the entire lineup of speakers, or to purchase tickets to MBG Con, visit MassBrewersGuild.org.

About the Mass Brewers Guild
Founded in 2007 by a group of committed and passionate brewers, the Mass Brewers Guild, is organized for the purposes of promoting craft brewing and protecting the interests of craft brewers across the Commonwealth. The association is membership based and open to all Massachusetts breweries licensed by the federal Tax and Trade Bureau and the Commonwealth’s Alcoholic Beverages Control Commission. The nonprofit creates a community of brewers while shining light on the broad range of breweries and styles offered throughout the state. Through industry and educational events, its mobile application beer trail map, and by providing resources and marketing support to brewers, the nonprofit works to highlight Massachusetts as a top travel destination for craft beer in the U.S. The board also continues its work at the legislative level, fighting for license and franchise law reform, and serving as the voice of craft brewers on Beacon Hill. The Massachusetts Brewers Guild is a 501(c)6 not-for-profit corporation.

New Workers’ Comp Class Code for Furloughed Brewery Employees

By: Matthew Post, C&S Insurance

According to an April 2020 survey, conducted by the Brewers Association, 99 percent of craft breweries—virtually all, in other words—experienced some economic strain due to the coronavirus pandemic. This staggering figure includes 90 percent who saw declines in their on-site sales, and 89 percent who were forced to cancel 2020 events. No doubt for many, curtailed cash flow and production led to another tough reality: furloughs.

Three months later—as restrictions ease and the industry begins to make peace with a new normal—any inroads toward recovery are worth pursuing. And luckily, thanks to the Massachusetts DOI’s recent approval of a newworkers’ comp class code for furloughed employees, we’re now seeing an opportunity for brewers to lower their annual premiums. The following Q&A outlines what this code means, who can leverage it, and when qualifying brewers need to take action. (As soon as possible is the answer, by the way.)

Q: What is this new workers’ comp class code, and why does it matter?

A: Code 0012 is a newly approved workers’ comp class code. For those who aren’t familiar with the term, a “class code” is a four-digit code used by insurance companies to estimate what your premium should be, based on the risks associated with the type(s) of work your employees perform. Normally, brewers and brewery drivers would be assigned a code of 2121—with a rate that currently stands at $1.24 per $100 of payroll. 

Because it is designed to address the folks on your payroll who were temporarily absent from work, this new code has a rate of zero ($0.00 per $100 of payroll). So even though you may have continued paying your furloughed employees, any of that payroll assigned to code 0012 would not be included in the premium calculations for your workers’ comp. That could potentially equal big savings.

Q: My brewery furloughed employees this year. Can we use this class code?

Yes, as long as you continued to pay those employees while they were furloughed, and provided you maintained “separate, accurate, and verifiable entries” within your payroll records. 

Q: What about employees working from home? Does that count as furloughed?

No. According to the WCRIBMA, if an employee has been designated to work from home, and his/her duties are now of a clerical nature, his payroll during the pandemic period can be allocated to Code 8810 – “Clerical Office.” (As long as you keep those separate records for each employee affected.)

Q: What documentation is needed in order to leverage class code 0012?

You’ll need to provide a list of all furloughed employees, the employees’ normal workers’ compensation class codes, their weekly wages, furloughed dates, and anticipated dates of return to work. Your insurance agent should be able to help you compile and review these materials before audit.

Q: When does my brewery need to submit this information?

According to the WCRIBMA, employers making payments to furloughed workers need to alert their workers’ comp carrier within 60 days of the rule’s approval (7/10/2020), or within 25 days of beginning to may furlough payments, whichever is later. If your annual audit is approaching, you’ll want to prepare this information even sooner.

Q: I still have questions about the new class code. Who should I ask?

Your insurance agent should help you take advantage of this cost-saving opportunity, along with other pre-audit reviews. If you don’t have a dedicated agent and commercial risk advisor, our team of brewery insurance experts would love to answer any questions you may have. You can reach me, Matt Post, at mpost@candsins.com or 508.504.2012. We recently worked with a new client on their annual audit, and were able to implement the 0012 class code for a variety of employees—saving thousands on the company’s workers’ comp premium. 

Utility Service Interruption Insurance: What Craft Brewers Need to Know

Business insurance is a complex animal. The list of potential risks is long and fairly nuanced, depending on the type of business at hand. Without an industry expert in your corner, it can be easy to overlook certain “what-if?” scenarios that aren’t expressly covered by your business owner’s policy. Having the right agent on your team, to anticipate and explain hidden gaps, is essential.

In the world of microbreweries, utility service interruptionis a perfect case in point. Utility service interruption is a specific type of loss event—an event not typically covered by standard commercial property terms, nor equipment coverage (a.k.a. “inland marine”), nor basic business interruption, despite its similar-sounding name. Meanwhile, utility service interruption is a very real and very costly exposure.

So here’s what you need to know:

What is utility service interruption insurance?

Also known as “off-premises power coverage,” utility service interruption (USI) is an endorsement that can beaddedto basic business interruption and/or commercial property coverage. USI typically covers disruptions to the following: 

·       Your Water Supply (pumping stations, water mains, sewer mains)

·       Your Power Supply (utility generating plants, switching stations, substations)

·       Your Communications Supply (optic fiber transmission lines, coaxial cables, microwave radio relays, overhead transmission lines)

USI endorsements vary widely, in terms of which utility services are included, whether both “Direct Damage” and “Time Element” losses are covered, whether transmission lines are covered, and other variables. Your brewery insuranceteam should help you define which elements within these categories are covered on your policy.

What’s the difference between Direct Damage and Time Element Losses?

There are two ways to extend your basic insurance program by adding USI coverage: a direct damage endorsement and/or a time element losses endorsement. 

A Direct Damage endorsement acts as an extension of your propertyinsurance, offering protection against damage to tangible property, resulting from a utility interruption. So if, for example, a power line down the street is struck by lightning, and a surging electrical current flows back into your building, the burst can overwhelm your surge protectors—damaging your computers, appliances, breakers, switches and receptacles. A Direct Damage endorsement would kick in to cover any new wiring needed or equipment replacement.

Time Element Losses, on the other hand, are associated with stalled operations and lost income. After a utility disruption, lacking electricity or water would likely prevent you from opening your doors—costing you money.  Similarly, if a prolonged power outage affected your ability to control fermentation temperatures, you might lose valuable batches of beer: more lost income. A USI Time Element endorsement would extend your business interruption coverage to help you recoup these losses, up to a predetermined time limit or until utility service was restored.

But I already have business interruption coverage? Isn’t this the same thing?

Not necessarily. Basic business interruption insurance covers your costs if an unexpected event (e.g. a fire or a flood) damages your propertyand forces you to close shop for a short time. In some cases, basic business interruption may also cover certain types of utility disruptions while excluding other types; overhead transmission lines are a prime example. Be sure to ask your agent which utility disruptions, if any, are included in your current BI policy. 

How common are utility service interruption events?

In the past 10 years we’ve all been affected by at least one severe weather event. Following the October snowstorm of 2011, thousands of New England customers lost power—many for more than a week. Hurricane Sandy caused nearly 400,000 power outages in Massachusetts alone, dragging out over a five-day span. 

Lightning is another common concern. According to electro-mechanical consultants, direct and indirect lightning strikes happen every day, causing a variety of business interruptions. “…All business machines and various equipment types can be electrically shorted and mechanical components become fused, resulting in premature failure, if not instant total loss. Water pumps, blower motors, alarm systems and machinery can be compromised.  Building plumbing, HVAC air handlers, heaters and wiring can have extensive damage affecting the operation and control.” In fact, in 2015, nine percent of all reported claims involving HVAC systemswere caused by lightning strikes. 

What does utility service interruption insurance cost?

Costs and ideal coverage limits vary, depending on your operation. The cost may also be a function of your carrier’s property rating algorithm. To provide a ballpark figure, our craft brewery insurance team was able to add $25,000 in utility service coverage—including overhead transmission lines—for a mid-sized brewery/tap room, for less than $200 per year. Well worth it, when you consider the cost of new equipment or multiple days of downtime.

What do I need to ask my agent about USI coverage?

We recommend having a conversation with your brewery insurance agent as soon as possible—especially now that we’re officially into hurricane season. He or she can explain the conditions under which your insurance company offers USI coverage, as well as advise you on what makes sense for your microbrewery. Talking points should include:

• The types of utility power or service to be listed on your policy
• The specific waiting period (often 24 or 48 hours) that must elapse before coverage is triggered. (Instead of a flat deductible, there is typically a waiting period for coverage to kick-in.  Because of this, you will want to consider how much your business could absorb before you would need to be reimbursed, factoring in peak and low periods of business.)
• Whether or not your USI coverage applies to contingent third-party locations (suppliers and receivers)
  
  In addition to utility service interruption, there are many other niche coverages and endorsements that craft brewers should at least consider adding to their policies. If you’re not sure what your current program covers (and what it doesn’t), please don’t hesitate to contact our knowledgeable brewery insurance team.

In addition to being a craft brewery insurance expert, Ben Cavallo is the owner and principal of C&S Insurance, a proud member of the Mass Brewers Guild. He holds degrees from Emory University and Boston College, as well as CIC, AAI, and CISR insurance designations. He can be reached at 508.339.2951 or ben@candsins.com.