Vapor Shop Insurance

The electronic cigarette industry keeps reinventing itself.  What started out as a $100 rechargeable model is now sold as a disposable unit for $4.99.  New and improved rechargeable vaporizer models are selling for top dollar.  Liquid flavorings make it appealing for smokers to switch to vaping and to come back for more.  This a great time to get into this industry especially while it is still largely unregulated.

Considering opening a Vape Store? 

Did you know that as a retailer you are exposed to the product defects of any product which you sell.  Unlike tobacco shops, which are provided with legal protection by the tobacco companies. Electronic cigarette/personal vaporizer brands lack the financial resources or the proper insurance policy to defend you against a lawsuit.  Keep in mind that most law suits lack merit and evidence.  However, the cost to defend yourself will probably equal to the amount you spent on opening your Vapor Shop or more.

Considering importing electronic cigarettes or vaporizers directly from China?

You can can skip the middle man and have the Chinese manufacturer print your companies brand on any product you desire.  Private labeling is a great idea, but did you know that you have to oversee quality control and you become 100% percent responsible for the product which is private labeled for you.  You would also be considered 100% responsible for the product as an importer, even if you don’t have your brand name printed on the product.  We advise that you hire qualified professionals, and create a quality control plan which goes beyond checking if the product is functioning or not.  The batteries may be faulty, the charging cables may not be compatible with other chargers, the paint on the plastic may be contaminated with lead, the e-liquid may have impurities or the level of nicotine may not be consistent with the labeling, all of these may lead to injury, disease, or even death.  Also, keep in mind that the products are intended for smokers.  Generally smokers have a weakened immune system which exponentially increase the risk for injury.

Is the landlord requesting insurance to move in?

In general the landlord will require that you secure a policy with a $1,000,000 per claim and a $2,000,000 aggregate limit.  In addition, the landlord would require that they be listed as an Additional Insured on your policy.  Some landlord may require higher limits and may require that you insure your inventory as well.  We recommend that you forward the insurance requirement portion of the lease to us for review.  This will ensure that you will properly meet the insurance requirements the first time.

What coverage is available?

At CALCO we offer general liability insurance – including product liability, and business contents insurance.  Other incidental coverages are available as well.  We insure all type of electronic cigarettes, personal vaporizers, and e-liquids.

You may apply for a vapor shop insurance quote online or call us at (877) 225-2699.

 

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