Winery Insurance Coverage Reinstated by FAIR Plan

September 2, 2021

Winery Insurance Coverage Reinstated by FAIR Plan Following Successful Passage of farm bureau sponsored Senate Bill 11

Napa, CA—-Today, the California FAIR Plan, the state's insurer of last resort, has announced it will resume offering basic insurance coverage for winery buildings and business personal property not involved with the growing and cultivating of grapes and crops.

The FAIR Plan previously offered coverage for wineries until it was determined that these risks were not eligible for coverage under the insurance code. To address this issue, the FAIR Plan supported Farm Bureau sponsored Senate Bill 11 which updated the code to include farms and wineries in commercial coverages, allowing the FAIR Plan to resume writing winery-specific coverage.

"This announcement is welcomed news and we appreciate FAIR Plan’s commitment to Farm Bureau to address our insurance availability crisis – including their efforts on Senate Bill 11," said Ryan Klobas, Chief Executive Officer of the Napa County Farm Bureau.

"It’s only right that wineries that had once been covered by FAIR Plan maintain it. This decision reflects many of the conversations between Farm Bureau and FAIR Plan to address insufficient insurance coverage for all of California’s agricultural community, including Napa Valley’s vintners. We appreciate this consideration and the continued cooperation with FAIR Plan over these past 18 months," said Klobas.

For the announcement from FAIR plan, please see their statement below.

Message from California FAIR Plan President

Colleagues and Partners:

I’m reaching out to inform you that following the passage of Senate Bill 11, the FAIR Plan has resumed offering basic insurance coverage for winery buildings and business personal property not involved with the growing and cultivating of grapes and crops. We recognize the critical need for this coverage and are pleased to be able to offer it again, as we simultaneously work to make additional farm coverages available.

The FAIR Plan previously offered coverage for wineries until it was determined that these risks were not eligible for coverage under the insurance code. To address this issue, the FAIR Plan supported SB 11 which updated the code to include farms and wineries in commercial coverages, allowing the FAIR Plan to resume writing winery-specific coverage. For any vintners who may have questions about FAIR Plan coverage, we encourage them to reach out to their insurance broker.

In the meantime, the FAIR Plan is working diligently with the California Department of Insurance to develop policy language, rates and rules for additional winery and farm coverage, which all require approval from the CDI and adequate time to implement. We appreciate the patience California’s farmers have had in awaiting this coverage, and we are eager to provide this much-needed safety net.

Thank you,

Anneliese Jivan

President, California FAIR Plan Association