Vape Shop Insurance

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.