Great American Insurance Group and PAK Programs Launch Specialized Property Insurance Solution for California Wineries
Great American Insurance Group’s Alternative Markets Division, in collaboration with PAK Programs, has introduced a new Difference in Conditions (DIC) property insurance solution designed specifically for eligible wineries in California. The specialized coverage aims to help insurance agents and winery owners address growing challenges in the state’s evolving property insurance market by providing protection against risks that may not be covered under traditional or limited property insurance policies.
The new insurance offering comes at a time when California wineries are facing an increasingly complex insurance landscape. Rising catastrophe risks, changing underwriting practices, and reduced capacity among property insurers have made it more difficult for many businesses to secure comprehensive coverage through a single insurance carrier. As a result, winery owners often rely on multiple policies from different providers to protect their facilities and operations.
Recognizing these market conditions, Great American Insurance Group and PAK Programs developed the new DIC policy to help fill potential coverage gaps while offering agents an additional tool for building more complete insurance solutions for their winery clients.
Addressing Challenges in California’s Property Insurance Market
California’s property insurance market has experienced significant changes in recent years as insurers respond to increasing risks associated with wildfires, severe weather events, and other catastrophic losses. These conditions have led many insurance companies to reduce exposure, tighten underwriting standards, or limit available coverage for commercial properties in high-risk regions.
For winery owners, securing adequate insurance protection has become increasingly challenging. Many businesses are now placing portions of their property coverage through multiple carriers, including the California FAIR Plan, which serves as an insurer of last resort for properties unable to obtain traditional coverage.
While the FAIR Plan provides important fire insurance protection, it generally offers more limited coverage than comprehensive commercial property policies. As a result, winery owners may remain exposed to additional risks that could significantly impact their operations.
The newly introduced Difference in Conditions policy is intended to complement existing insurance arrangements by providing broader protection for covered property exposures that may otherwise remain uninsured.
Helping Close Coverage Gaps
Difference in Conditions insurance is commonly used to supplement primary property insurance by covering specific risks that are excluded or only partially addressed under standard policies.
Great American’s new solution has been tailored specifically for the operational needs of California wineries, recognizing that these businesses face a unique combination of agricultural, manufacturing, hospitality, and commercial property risks.
According to the company, the policy is designed to work alongside California FAIR Plan coverage and other limited property insurance solutions, helping insured businesses address exposures that extend beyond fire-related losses.
The coverage remains subject to policy terms, conditions, underwriting requirements, coverage limits, and applicable exclusions.
Protection for Winery-Specific Risks
Unlike many commercial properties, wineries rely on highly specialized equipment, production processes, and valuable inventories that can be vulnerable to a wide range of operational risks.
Jennifer Burnham, Divisional Vice President of Great American Alternative Markets, noted that wineries may experience losses resulting from events that are not typically covered under limited fire insurance policies.
Among the exposures identified by the company are water damage, wine leakage, storage tank collapse, wine contamination, equipment breakdown, and other operational incidents capable of causing substantial financial losses.
Each of these risks has the potential to interrupt production, damage valuable inventory, or require costly repairs that extend well beyond traditional property damage claims.
The new Difference in Conditions policy is intended to help address these specialized exposures, providing winery owners with broader financial protection when combined with existing insurance coverage.
Supporting Insurance Agents
The product was also developed with insurance professionals in mind.
As California’s insurance market has become more complex, independent agents and brokers increasingly need flexible insurance solutions that allow them to assemble comprehensive coverage packages for clients whose risks can no longer be insured through a single carrier.
By introducing this specialized DIC policy, Great American and PAK Programs aim to provide agents with an additional option when designing insurance programs for wineries facing limited property insurance availability.
The companies believe the solution enables agents to better serve clients by helping reduce potential gaps between existing insurance policies while addressing exposures unique to winery operations.
Built Through Industry Expertise
PAK Programs has established itself as a leading provider of specialty insurance solutions for craft beverage businesses, including wineries, breweries, distilleries, cider producers, and related operations.
Its experience within the beverage industry has helped shape insurance products tailored to the distinct risks associated with alcohol production, hospitality, agriculture, manufacturing, and retail operations.
Through its collaboration with Great American Insurance Group’s Alternative Markets Division, the organizations have combined underwriting expertise with specialized industry knowledge to develop coverage specifically designed for California’s winery sector.
The partnership reflects both companies’ focus on delivering insurance solutions that address emerging market challenges while supporting the long-term stability of specialty businesses.
Additional Insurance Opportunities
Beyond the new Difference in Conditions policy, winery owners purchasing the coverage may also qualify for additional insurance products available through Great American Insurance Group.
Eligible businesses may obtain commercial property, general liability, and commercial automobile insurance designed to protect other aspects of their operations.
These coverages may extend to a variety of qualifying facilities and business activities commonly associated with winery operations.
Examples include warehouses used for inventory storage, tasting rooms that welcome visitors, vineyards where grapes are cultivated, wine production facilities, hospitality venues hosting events, and other operational locations connected to the business.
By offering multiple lines of insurance through a coordinated program, Great American aims to provide winery owners with broader risk management solutions tailored to their specific operational needs.
Responding to an Evolving Industry
California remains one of the world’s largest wine-producing regions, supporting thousands of wineries that contribute significantly to the state’s agricultural economy and tourism industry.
Many wineries have diversified beyond wine production to include restaurants, event venues, hospitality services, retail operations, and direct-to-consumer experiences. While these business models create new growth opportunities, they also introduce additional operational risks requiring comprehensive insurance protection.
At the same time, climate-related challenges, including increased wildfire activity and changing weather patterns, continue to reshape the commercial insurance environment throughout California.
These evolving conditions have increased demand for specialized insurance products capable of addressing complex property risks while providing businesses with greater financial security.
Expanding Risk Management Options
The introduction of the new Difference in Conditions solution reflects Great American Insurance Group’s ongoing commitment to developing specialized insurance products for industries facing unique risk profiles.
Rather than replacing existing property insurance, the DIC policy is intended to complement current coverage arrangements by addressing exposures that may otherwise remain uninsured.
For insurance agents, the product offers greater flexibility when structuring insurance programs in an increasingly challenging marketplace. For winery owners, it provides an opportunity to strengthen overall property protection while reducing the financial impact of losses that extend beyond standard fire coverage.
As California’s commercial property insurance market continues to evolve, Great American Insurance Group and PAK Programs believe the new solution will help eligible wineries build more resilient insurance programs that better reflect the realities of modern winery operations. By combining specialized underwriting expertise with industry-specific coverage, the companies aim to provide winery owners and insurance professionals with practical tools to navigate today’s complex risk environment while supporting the continued success of California’s wine industry.
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