1. Farm Bureau Underwriting Executives Conference Erin Dunn Wineries

2. There are ________ wineries in the U.S. As of 2015, annual wine consumption per capita reached _____________ in the U.S. There are __________ acres of land “under vine” in the United States. 8,287 2.83 Gallons 1,035,000 Wineries Across America

3. Wineries by state Currently, there are 13 states that have more than 100 wineries: 3 Ohio - 181 Michigan - 147 North Carolina - 142 Missouri - 135 Colorado - 115 California – 4,054 Washington - 718 Oregon - 689 New York - 367 Virginia - 262 Texas - 228 Pennsylvania - 220 Illinois - 110

4. 44 Case Production # in US Large>500,000 cases58 Medium50,000 – 499,999 cases254 Small5,000 – 49,999 cases1,480 Very Small1,000 – 4,999 cases3,465 Limited Production <1,000 cases3,030 Wineries by size

5. 55 Oenology - the science and study of all aspects of wine and winemaking except vine-growing and grape-harvesting Viticulture - the science, production, and study of grapes Crush – The time when grapes are harvested and broken-up or “crushed” Dram shop laws - law in 38 states which makes a business which sells alcoholic drinks or a host who serves liquor to a drinker who is obviously intoxicated, strictly liable to anyone injured by the drunken patron or guest Bonded Wineries - have their own brick-and-mortar production sites Virtual Wineries - have brand names and produce wine at host facilities Punt – Also known as a kick-up, the raised or dimpled portion of the bottom of a wine bottle Wine Words

6. 66 How many individual grapes does it take to make one bottle of wine? About how many grape varieties are used in the commercial production of wine? What is the purpose of the punt on a bottle of wine? Discovered in Armenia, how old is the world’s oldest winery? Fun Facts! 600-800 1,300 No one knows! 6,000 years (circa 4000 B.C.E.)

7. 77 Special Events Liquor Liability Auto & Motor Truck Cargo Tasting Rooms Tours Restaurants Containers & Labels Product Liability Environmental Impairment Crops Workers Compensation Business Interruption Winery Exposures

8. Brands and Labels – Up to $5,000 of coverage is provided for costs the insured incurs to remove brands or labels from covered property, damaged by a covered cause of loss, if we choose to take any of the merchandise at an agreed or appraised value. Collapse of Wine Tanks/Cooperage – For cooperage (barrels) and wine tanks inside the building, and not affixed to the building, we will provide up to $25,000 of coverage for collapse. Farm Bureau Insurance of Michigan Winery Package Endorsement

9. False Pretense – Up to $25,000 of coverage is provided when the insured voluntarily parts with the covered property due to having accepted false bills of lading or shipping receipts; or someone causes the insured to voluntarily part with the covered property by trick, scheme, device, or under other false pretense. Food Contamination – Up to $25,000 of coverage is provided for expenses to clean equipment, replace contaminated food, loss of business income, and advertising expenses incurred to restore reputation if the insured’s business is closed by the Board of Health or any other governmental authority as a result of the discovery or suspicion of food contamination. Farm Bureau Insurance of Michigan Winery Package Endorsement

10. Mobile Equipment Rental Reimbursement – Up to $25,000 and 30 days of coverage is provided to reimburse the insured for the expense to rent mobile equipment if their own mobile equipment is damaged by a covered cause of loss and is inoperable. Non-Owned Mobile Equipment – Up to $25,000 and 90 days of coverage is provided for loss or damage to mobile equipment the insured borrows, rents or leases. Farm Bureau Insurance of Michigan Winery Package Endorsement

11. Outdoor Property – Vines and trellises that are not “stock” are included with trees, shrubs, and plants as part of Outdoor Property. Coverage up to $5,000 is provided for outdoor trees, shrubs, plants, vines, and trellises, with a per tree/shrub/plant/vine/trellis limit of $1,000. Pollutant Cleanup and Removal – Increases the limit provided in the base Building and Personal Property Coverage Form, to $25,000. Farm Bureau Insurance of Michigan Winery Package Endorsement

12. Property in Transit – We provide $25,000 of coverage for Property in Transit, with a limit of $5,000 for property in the care, custody and control of salespersons. Refrigeration Breakdown for Property in Transit – Up to $5,000 of coverage is provided for spoilage or contamination damage to the insured’s property or property of others in their care, custody, or control, during transportation by motor vehicles owned by the insured. – Records of monthly inspections of the vehicle’s refrigeration unit are required. Farm Bureau Insurance of Michigan Winery Package Endorsement

13. Seasonal Automatic Increase for Spoilage – The applicable limit of insurance for spoilage is automatically increased by 25% to accommodate seasonal variations. Spoilage – We provide $50,000 of spoilage coverage under Equipment Breakdown in the base policy. The Greenhouse Package Endorsement includes $50,000 coverage for non-Equipment Breakdown Spoilage perils. Farm Bureau Insurance of Michigan Winery Package Endorsement

14. Valuations for Wine – Bottled winery products will be valued at the price the stock could have been sold for as case goods as of the time and place of loss or damage. – Bulk wine will be valued at the price the wine could have been sold for as of the time and place of loss or damage or the market price of replaceable bulk wine of like kind and quality. – Cellared, rare or vintage wines will be valued at the average market listing on the date of loss, as determined by a professional wine appraiser. Wine Contamination (Cellar Funk) – Cellar Funk is a sensory defect in wine caused by Trichloroanisole (TCA), causing the wine to have a musty flavor or aroma. Cork is a major source of TCA in bottled wine, although it may also come from barrels or other sources of wood. Cellar Funk has been added to the Additional Coverage for Fungus, Wet Rot, Dry Rot, Or Bacteria. A separate $15,000 limit of insurance applies to Cellar Funk. Farm Bureau Insurance of Michigan Winery Package Endorsement

15. Liquor Liability coverage provides a defense and will pay all sums for which the Insured becomes legally liable as a result of injury arising out of the selling, serving, or furnishing of any alcoholic beverage. The term "Injury" in this coverage form is defined as meaning "all damages, including damages because of bodily injury and property damage, and including damages for care, loss of services, or loss of support." We will only provide the coverage on an occurrence basis. An important exclusion eliminates coverage for injuries arising out of the selling or serving of liquor while any required license is suspended, expired, cancelled, or revoked. Farm Bureau Insurance of Michigan Liquor Liability Coverage

16. Customer Identification: A policy conspicuously posted stating the minimum age for liquor purchases and that identification may be required. Employee Training: – Training of employees that explains the policy regarding customer identification by driver’s license to verify purchaser's age. – The licensing guidelines of the Liquor Control Commission and the Dram Shop Law must be reviewed. – The employees should be instructed in how to handle refusal of sales to minors and intoxicated persons. Farm Bureau Insurance of Michigan Liquor Liability Coverage