Smoke-Tainted Grapes Yield Knotty Coverage Dispute In CA

By on February 11, 2020

February 11, 2020

California wildfires, particularly those that hit Napa and Sonoma counties in 2017, smoke-damaged acres of grapes that were destined for wine-making. For some growers, attempts to collect on insurance policies are running into resistance. The issues are complicated, starting with the fact that two phases of the wine-making process are covered by two distinct kinds of policies. Crop insurance covers grapes on the vine, while property insurance covers harvested grapes and subsequent product. In some cases, it’s not clear when the damage occurred, as growers rushed to pick grapes before fires arrived, and they may or may not have finished before the smoke damage occurred. In other situations, evidence of damage may not have been apparent until well into the process. One lawsuit has been filed, and more are anticipated.

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Insurance Journal

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