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Calco Commercial Insurance Services

CA DOI License #0G67945

Vape Shop Insurance Coverage Explained

The most common question we get is:

If I did not manufacture the product why do I need to purchase a Product Liability Insurance policy?

ANSWER:  If you sell, donate, or place in to the stream of commerce any product manufactured or not manufactured by your vape company, you are liable for any injuries arising out of the use of the products.  There are no exceptions to the law.  You have the right to subrogate or to sue the manufacturer or the supplier of the products, just make sure to do that if you are certain that you will be able to collect.

Here is what you need to have if you have a Vape Shop/Vapor Shop:

General Liability Insurance coverage:  this type of policy will include several coverages which include; Vape Shop Product Liability Insurance, Personal/Advertising Injury Insurance, Damages to Premises Rented to You, and if packaged together Business Contents.

 

Coverages Explained:

 

Product Liability Insurance:  this is always a part of a General Liability Insurance policy.  It covers your completed work or finished product which you sell, in the event of an injury such as an exploding battery/vape device.  This insurance coverage type will also cover claims arising out of a Health Hazard such as cancer or disease.

Personal/Advertising Injury Insurance:   covers claims against you in the event there is an allegation of violation of consumer rights.  For example, if you sell a "Premium" line then you are exposed to a potential class action lawsuit (only 3 plaintiffs are required).  A plaintiff(s) can allege that they would have not purchased your product had they known the juice you sell has the same ingredients as a competing product which costs less.  They can also allege that the quantity is less, the list goes on.

Damages to Premises Rented to You:   covers the interior space of the unit which you lease.  The floors, ceiling, and walls.

Business Contents:  this is a type of Business Personal Property coverage.  It will insure that your inventory, display cases, and any other business owned property is covered for Theft/Fire.