Vapor Shop Insurance from The Hartford, Not Really?

Opening a vapor shop or an electronic cigarette store is an exciting venture until you start shopping for insurance.  Companies like The Hartford, Allstate, State Farm, AAA, Allied/Nationwide, Travelers, and many other well recognized insurers do not offer coverage to retailers/importers/distributors of electronic cigarette products, including e-juice.  These companies are conservative and selective of what they insure.  The main issue is the exposure related to the imported products.  When the products are imported, the liability rests on the importer, not the Chinese manufacturer.  In fact, there are Treaty laws which prevent US companies from suing in China.  Even if there were no Treaty laws in place, who will spend their resources subrogating against a company in China.  As such, companies like The Hartford have no interest in insuring this industry.

It has come to our attention that there are brokers which place coverage through the Hartford.  Unfortunately, the brokers themselves do not know how to properly class the electronic cigarette industry.  The closest class they are able to find during the rating process is “tobacco store” or “electrical apparatus products”.  If you have a purchased a Hartford policy you are very likely to received a Notice of Cancellation  (NOC).  After a sale is made by an agent, each and every policy goes through an underwriting review.  It is only then, if discovered, that the policy is deemed unacceptable and an NOC is issued.

Choosing a broker which specializes in the electronic cigarette/vapor shop business is important.  You will receive guidance and be placed with an insurer which will not cancel you, more importantly an insurer which will not deny your claim.  Electronic cigarette insurance has been offered by Calco Commercial Insurance since 2008.  The president of CALCO vapes himself and sees this product as a revolutionary for smokers.  If you would like to learn more about the coverage offered by CALCO visit our e-cigarette insurance site or call us at (818) 906-7900.

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