What sets the Wine industry apart is that its product is not produced for immediate sale. It is held and matures and sold months or years after harvest.
This does not fit well with conventional insurance. Conventional insurance will quickly pay for the cost value of destroyed wine, however the overhead recovery and profit could take a number of years to quantify.
The Gold Medal Insurance overcomes this by insuring wine for an agreed value. The value is set by you, the Wine Company. It is agreed at inception in a Product Cost Schedule.
The Wine Company determines what will be paid not the insurance assessor, whether it is the grapes, bulk or bottled wine.
On this basis, claims can quickly be quantified and settled and the time and expense of a Business Interruption policy is avoided.
From the time that grapes enter the wine making facility they are insured at the agreed value no matter where in the process they are destroyed. Less, of course, any processing and storage costs not already incurred.
Gold Medal Insurance is built around a modern Industrial Special Risks policy. It caters for all winery assets not just winery stocks. Agricultural implements are insured for their replacement value, not under a motor insurance policy whereby cover is restricted to market value. In one particular implement shed fire this feature added over $300,000 to the claim payment.
In addition to the basis of valuing wine, the policy has a number of other special features to enhance the policy coverage.
Grapes on the Vine
If the wine making facilities are destroyed and alternatives are not available, the policy will pay for the value of the wine which would have been produced from grapes still on the vine. The payment is in accordance with the agreed values – again less processing costs not incurred.
Contamination, spoilage, spillage and leakage of grapes and wine are insured during the production process. Various sub-limits will apply.
Vineyard Poles, Trellises and Ancillary Property
These are insured under the Gold Medal Insurance for limited perils again to a base limit of $100,000.
Temporary storage of bulk or finished wine at non-specified locations is automatically insured anywhere in New Zealand to a limit of $250,000.
All vineyard and winery motors and machinery are automatically insured for mechanical breakdown.