Vape Shop Insurance

Vape Shop Insurance

Customized protection for vape shop owners to safeguard their assets from liability risks

Zensurance - Vape Business Owner

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Vape Store Business

Insurance for vape and smoke shops

Vape shops are among Canada’s fastest-growing types of businesses, with revenue estimated to be worth US$1.3 billion in 2023 and growing annually by 3.90% through 2028.

Their popularity is spurred by the belief that e-cigarettes, vape pens, and e-liquids or vape juices can help smokers transition away from tobacco in favour of a product that could pose fewer health risks to users. Many smoke shops and convenience stores selling tobacco may also sell vaping products.

However, businesses selling e-cigarettes and vaping products face many liability risks that require a comprehensive vape shop insurance policy to protect them.

Vape shop liability insurance protects businesses that operate vape shops or sell vaping products. It provides financial protection in case of legal claims, lawsuits, or other liabilities the business may face. Vape shop owners face unique risks related to the sale and use of vaping products. A vape shop liability insurance policy from Zensurance is tailored to address those specific concerns.

A comprehensive vape shop liability insurance policy may include the following types of coverages:

  • Commercial General Liability (CGL) Insurance: CGL, or general liability insurance, covers vape store and smoke shop owners from third-party liability risks, such as bodily injury to a customer if they slip and fall in your store or if a customer’s personal property is damaged because of negligence by your business or due to an accident. CGL is designed to compensate a customer for their injury or property damage following an insurable loss and provide you with funds for your legal defence if sued. CGL also covers costs to repair or replace a landlord’s property that you rent or occupy and advertising-related injuries if you’re facing allegations of defamation or false advertising.
  • Product Liability Insurance: Every vape store owner is responsible for the products they manufacture, distribute, or sell. Product liability insurance covers allegations and claims of third-party bodily injury or property damage caused by the products you provide to customers or business partners. This type of coverage may be included with general liability insurance. If it isn’t, you can add it to your policy.
  • Commercial Property Insurance: The business property where your vape shop is located needs protection from unforeseen damages and losses. Commercial property insurance covers any business properties you own, lease, or rent if damaged by fire, water, a natural disaster, vandalism, or theft. It is also designed to repair or replace your business contents (electronics, furniture, inventory, merchandise) if affected by these types of insurable losses. Additionally, if you rent or lease a commercial property and make improvements or renovations to the building that cannot be removed, commercial property insurance can cover your investment in the tenant improvements you’ve made.
  • Business Interruption Insurance: If your vape store or smoke shop is forced to close temporarily for repairs following an insurable loss, such as a fire, business interruption insurance can offset your loss of income while your store is closed. It includes coverage for lost income, rent and mortgage payments, employee payroll, utility bills, and loan payments. Business interruption insurance may be included with commercial property insurance. You can add it to your policy if it isn’t, provided you also have commercial property insurance.
  • Cyber Liability Insurance: If your vape shop has a website, uses email and social media, a point-of-sale (POS) system, or collects and stores confidential or financial customer information, you need cyber liability insurance to help you recover if your business suffers a cyber-attack. Cyber liability insurance covers costs for legal advice, crisis management services, notification and credit monitoring fees, repairing and restoring affected software systems, and income losses because of a system outage following a cyber-attack.

There may be other types of coverage your vape store business requires. For example, consider adding commercial crime insurance to your policy if you’re concerned about internal theft. Speak to a licensed Zensurance broker if you have questions about what to include in your policy.

Insurance providers determine the cost of a vape shop insurance policy based on your business’s specific details, including:

  • Your location and the size of your store
  • Your years of experience as a vape store owner
  • The products and services you provide
  • How many employees you have (if applicable)
  • Your annual and projected gross revenue
  • Your insurance claim history

Getting insured is quick and easy!

Complete our 5-minute online application for a free vape store insurance quote.

Common claims scenarios

Problem: One of your customers alleges a vape pen they bought from your store malfunctioned and overheated, causing them to suffer burns.

Outcome: Your product liability insurance may cover the injured customer’s medical expenses.

Electrical outlet fire

Problem: A fire ignites in your vaping store overnight, inflicting significant damage to the building, your electronics, furniture, and inventory.

Outcome: Your commercial property insurance may pay to repair the damages to the building and repair or replace the damaged electronics, furniture, and inventory.

Problem: Your vape shop’s website and customer database are hacked, exposing hundreds of your customers’ confidential information and erasing your website from the internet.

Outcome: Your cyber liability insurance may cover costs to restore your software systems, rebuild your website, and provide your customers with credit monitoring services.

Frequently asked questions

Does vape shop insurance cover online sales of vaping products?

It depends on the policy. Some insurance policies include coverage for online sales, but not all. Speak to a licensed Zensurance broker if you sell vaping products online.

Is selling e-liquids with high nicotine concentrations considered more risky to vape store owners?

Yes. Insurance providers consider vape juice or e-liquids with high nicotine concentrations more risky, and selling them may impact your premium.

Does vape shop insurance include coverage for offering custom e-liquid mixing services?

Yes. However, providing this service may require higher coverage limits and affect your annual premium.

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Ready to start? Let’s get a quote!

Get the comprehensive coverage your vape shop business needs from Zensurance.

Fill out our online application for a free quote. Let our knowledgeable brokers find the low-cost policy you need and customize it to suit your requirements and budget from one of more than 50 insurance providers in our partner network.