Best Vape Shop Insurance 

Getting a quote can get complicated, especially if you are a new business owner in the vaping shop industry. Because of this, it is essential you get policies that can cover the main basics, like general liability and product liability. But what do those products cover, and how can they benefit?

In this guide, you’ll find some of the best vape shop insurance agencies and places to get quotes online. We also gathered some of the benefits of getting specialized insurance policies, the difference between the type of products, and which ones to choose when looking at these types of products.

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So buckle up, we’ve tried making this topic as digestible as possible, as getting the right insurance is key to keeping your business safe.

Key Takeaways

  • Getting insurance can have potential benefits like keeping your safe protected in case of liability in the supply chain, health problems, bad advertising, or your shop’s reputation.
  • It is important for all small businesses to have some form of business insurance. This can provide protection in case of unexpected hazards or issues that may arise at any time.
  • Many products can protect you, including the BOP, worker’s liability, product liability, and other policies that can complement liability and Vape Shop Liability and Vape Shop property insurance.

A Quick Look at the Best Vape Shop Insurance

What Are the Benefits of Liability Insurance for Vape Shops?

Getting insurance might sound like a bore, but it can really make or break your business during a crisis. Because of this, we thought of some benefits of having liability insurance, both as a small business and specifically as a vape shop. Let’s take a look at some of the most important ones.

  • Save Your Business in Case of Liability in the Supply Chain: No brand is perfect, and even the most reputable product out there might create faulty products. This kind of service can protect your reputation in case you have bad luck with a faulty piece.
  • Keep Your Shop Safe in Case of Customers’ Health Problems: As the FDA has not regulated products with e-juice, liability policies can help you with potential problems with customers regarding health.
  • Protect Yourself From Bad Advertising: If a product or vaping juice has advertisement issues that could result in problems with your reputation, this type of policy can help you.
  • Safe Your Shop’s Reputation: As vape products are still in the gray zone in many states, there is a lot of misinformation around the web. Because of this, you can protect yourself from possible misinformation dangers with this type of product.

Why Do You Need E-Cigarette and Vape Shop Insurance?

Besides the law requirements per state, there are a few key ideas of why you need insurance for your smoke shop-oriented service, specifically a vape shop. First of all, vape shops send electronic delivery systems, batteries, liquids, and vaporizers.

All of these products are not regulated by the FDA, which leaves a gray area on how and where products can be sold. Some states have specific regulations, while others tend to be pretty strict on the age, like California, which doesn’t allow anyone under 21 to buy e-cigarettes and has a dedicated tax towards e-cigs and vapes. You can learn more about your state over here.

Now due to the lack of regulation and all kinds of products out there, it is important business owners can protect themselves from consumer injuries or health problems, risks like fires or hazards in the shop, or different dangers that can arise from selling products with heat elements like coils or lithium batteries.

All in all, an insurance service or agency can help you get coverage for the special types of risks you can face. Regular retail services won’t be helpful with specialized health problems regarding smoking or even faulty pieces that could be broken inside the store. So to prevent and minimize loss, it is important that vape shop owners can look at the right product when taking a look at these services.

A man shopping at a vape shop

What Does Vape Shop Property Insurance Cover?

Now, there are different things insurance can cover depending on the type of service you are getting. One of the key policies you should look at is property insurance.

Property insurance can cover theft, damage, or destruction of your physical (commercial property). This includes the building you are in if you are the owner, inventory, computers, stock supplies, and even office equipment.

Since vaping equipment can be susceptible to damage or theft thanks to the materials or components used, it is important this is one of the policies you consider at first. Some policies also include business interruption, which reimburses you for lost income or expenses like salaries or rent if you must close your shop after a loss (like a flood).

What Does Vape Shop Liability Insurance Cover?

To understand a Liability Insurance policy, you need to think of it as a safety net, shielding you from various accidents and mishaps, like a clumsy customer that fell onto a glass. In the ideal scenario, this type of insurance would cover defamation, further damage, and accusation of harm inflicted by your products.

This is especially important for the vape industry, as it currently navigates choppy waters due to the unknown long-term health effects and no regulation by the FDA. Should something happen with a vaping device or illness due to nic salts or vape juice, your business could get under legal scrutiny and affect the supply chain all the way to your shop.

Now, because of this, having liability insurance is important as it helps with bodily or property damage caused by batteries or vape juice. The lack of this coverage is usually called a “health hazard exclusion,” and you must make sure your current policy can help with that.

This clause essentially leaves you unprotected from any injuries or illnesses caused by your products. Because of this, it is important you do choose an insurance service or company that caters to vape shops specifically. Due to how these specialized services work, they can protect you from malfunctions or possible problems derived from faulty pieces.

How Small Business Insurance Works to Protect Small Business Owners

Basically, every small business needs some type of combination of business insurance. This way, it can help you in case of hazards or potential problems, which sadly can arise at any moment. Because of this, getting the right information and policy is key when starting up a retail business.

To start your own vape shop, it is important you start by getting two commonly used services, general liability insurance and property insurance policies. The first one will help you specifically with the line of work, protecting you from possible dangerous hazards from faulty pieces or products, but also possible health issues from clients.

The second one can help you against theft, losing products or stock, inventory problems, or, generally, whatever happens to the physical place where you have your store installed. You could also look for a BOP or Business owner’s policy, which basically takes the two together in a cost-effective package.

You could also look at other complements to these services, like policies that can help you protect your workers or specifically protect your stock or inventory. By getting at least the first two and complementing them depending on your needs and state regulations, your business is safe from imminent problems or faulty products that could endanger your inversion, shop, and even reputation.

Vape Shop Insurance vs. Smoke Shop Insurance

While it might sound contradicting at first, these two types of services have a few differences that could make or break your experience. The difference is that vape shops usually need a product liability policy, besides general liability insurance that could include customer injuries.

This is because faulty pieces, batteries, and other products that could potentially harm your product can be very common. Smoke shops sometimes carry vaping devices, but they are mostly focused on glassware devices, torches, and pipes.

Because of this, smoke shops usually only get product policies but do not care about possible reputation or liability clauses due to the type of products they have.

Vape Shop Insurance vs. Tobacco Shop Insurance

Tobacco shops typically sell pipes, tobacco, glassware, lighters, and rolling papers, which are less likely to harm customers. As a result, shop owners often omit clauses that address potential health risks.

Unlike vape shops, tobacco shops do not carry e-juice or pods and require a special license to sell tobacco-based products. While they can opt for a product liability insurance policy, it is not as crucial as with vaping devices and pens due to the differences in the nature of the products.

What to Know Before You Insure Vape Businesses

There are many types of policies out there, depending on your needs as a business owner or the things you need to be protected. Some are best for slip-and-fall injuries, while others are better if you want something cost-effective for a small shop. Let’s take a quick look at some of the most common ones.

Business Owner’s Policy

Now, a BOP (Business owner policy) bundles both commercial property protection and general liability in a single package. This is the type of insurance you want to get if you want a cost-effective plan that’s still commercial. It is best for business interruption incidents, slip-and-fall injuries, or even pickpocketing and theft.

General Liability Insurance

General liability insurance usually covers common business risks, including customer injury, property damage, damage caused by a product, and advertising injuries. This is one of the smallest policies on the list, but it’s the best option for starting shops as it can help you qualify for leases and contracts in the long run.

Workers’ Compensation Insurance

This type of policy is oriented toward your staff, as it covers medical costs and lost wages for work-related injuries and illnesses. This type of insurance is a must for any retail business, as your employees sell your products, answer questions, and basically keep your business running. It is also required in almost every state, so besides being helpful, it is most likely a requirement for you to go retail.

Product Liability Insurance for Vape Shops

Lastly, we got product-exclusive insurance policies. These basically protect against claims of personal injury or property damage caused by products sold or supplied through your vape shop or smoke business. This is essential for vape shop owners to have, as some products can be misused in this lane of work, like a butane torch or a faulty heating piece. Because of this, it is a must to have if you are exploring different types of policies.

Best Vape Shop Insurance

Now that you know all the basics of insurance and policies that are dedicated to vape shops, it’s time to check some of our favorite agencies and services to choose from. Some of the following policies have bigger coverage or cost-effective services. You could also find a simple service that has a straightforward process to buy them. Let’s take a look at some of the best in the industry.

1. Marenco

Now, if you want an independent agency that can practically customize its services to your needs as a small business owner, you’ll be better off with Marenco Insurance. Since 1961, this family-owned has had quite the experience to bring coverage, service, and of course, industry knowledge to show you what fits your needs best.

A screenshot from Marenco's website

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Marenco’s Insurance quote can fit your needs easily, either by getting it online or asking for an agent. While on their website, you can get an online budget for different areas, fill out their form,
or decide to talk to one of their agents for a personalized service. They also have interactive graphics for BOPs, Worker’s Compensation, Cyber Liability, and even General Liability policies.

Marenco Highlights

  • You can get both an online quote and personalized agent service
  • Includes BOPs, Worker’s Compensation, General Liability, and Commercial Properties insurance
  • You can get special insurance by industry from their easy to use website and quote form

 

Why Marenco Insurance Is the Best Overall Name for Vape Shop Insurance

We had to put Marenco first due to their incredible service and customizable options. Getting a quote is super easy, and their multiple insurance policies can fit your needs in a flash. Their personalized agent service can be pretty helpful, especially if you need guidance on which policies and clauses are better for your business.

2. Reefer Protector

If you want specialized Cannabis Insurance, you’ll want to check out Reefer Protector. This agency makes quotes for the smoking sector a breeze, and this is even more important in an unfair stigma with an ever-changing legal environment. So if you want an online agency that can help you with smoke, cannabis, and vape shops, you are in the right spot.

A screenshot from the Reefer Protection website

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Reefer Protector’s quote is super easy to get. You can basically get your options in less than 5 minutes or get an agent in no time. The best of all is that you can basically get insured all online, with no need for actual contact (shoutout to all my introverted business owners out there). Some of the policies offered include general liability, property insurance, product liability, and commercial auto.

Reefer Protector

  • You can easily get your quote and insure yourself online
  • Has all the basics covered for vape and cannabis shops
  • Specialized clauses for shops carrying hemp and cannabis products

3. Breckenridge Insurance

If you want seasoned experts with specialized agents and a massive array of products to choose from, you’ll want to look at Breckenridge Insurance. With over 6,000 brokers over the country with expert brokerage, binding, and support programs with partnerships all around, you’ll feel backed up and ready to start your business.

A screenshot from the Breckenridge Insurance website

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Their insurance quotes are really easy to use. With over 30 years of expertise, you can get a quote by filling out their super easy form. They also have a special program for smoke and vape shops, with coverage designed to fit most of the states with responsible and reliable claims handling.

Breckenridge Highlights

  • Vape-shop-specific programs.
  • Available in most states of the country.
  • Easy search and process on their website.

4. Veracity Insurance

Veracity Insurance has a business model created on niche and specialized markets, which is perfect if you are looking at gray-zoned industries like vaping. They have a primary focus on Products Liability insurance, which is key if you want to start your vape shop business on the right foot while adding flexibility and adaptability to the mix.

A screenshot from the Veracity Insurance website

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The E-Cigarette & Vape Shop Insurance program is perfect for all kinds of e-cig and vape shops. Their program targets manufacturers, distributors, retailers, and stores. Their insurance also welcomes startups and new ventures, which can help small and big companies alike.

Veracity Highlights

  • Specialized vape and e-cig program,
  • Startups and new ventures-oriented from 250k and up to 20 million USD
  • Additional coverage is available, like transit, product recall, and even pollution coverage.

5. Trusted Choice

Last but definitely not least, Trusted Choice is a great way to insure your smoke shop thanks to their easy quote form. Their smart form follows your needs right to what you need and the specialized industry your business is in. They also have industry-based products which can guide you to the coverage you need.

A screenshot from the Trusted Choice website

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Trusted Choice creates a personalized quote based on your needs with a better price. They find the right agents and get the coverage you need based on their forms. You can also get Business Liability, Worker’s Compensation, or a BOP option, depending on what you are looking for. Commercial property and vehicle insurance policies are also available, depending on what you need.

Trusted Choice Highlights

  • The smart form gets your exact needs.
  • Easy process to follow to get your quote.
  • Over 250,000 independent agents.

How We Made Our Choices for the Best Insurer for Vape Shops

To craft this list of best vape shop insurance services, we looked at independent agencies that could offer flexibility but also could be cost-effective. Some of these agencies have simple processes that can be filled out online, while others offer a massive array of products to fit your needs.

Overall, it is important you look at each of the quotes and decide which one fits best your needs. Some business owners might need a cheaper option, others need a customizable experience that you can use.

What to Look For in the Vape Shop Liability Insurance

Now, we talked about the different types of products, but looking for the right agent and product is key. Look for agencies that have reviews or are mentioned on websites like this one, so you can ensure they have a good reputation.

Before making a full-on decision, compare different quotes and look at the clauses. It is key that the product liability insurance services do not exclude batteries or health, as we mentioned before, so make sure that your agent can fit their services to your business needs.

How to Choose Local Business Insurance That’s Right for You

If you want to look at different insurance agents, there are a few things that you should really take into account. Here are some things you can look at depending on your needs.

  • Some states require certain insurance services to apply for credit or rent a property, so make sure to look at the state’s requirements and let your agent know about this.
  • Balance out the costs and coverage, as some insurance agencies have different services that you might want to skip to save a few bucks.
  • If you are on a budget, try getting a Business Owner Policy, as it usually mixes the basic clauses from product and property liability clauses. However, if possible, look at product and property liability policies too.
  • Check the different services and look for a “health hazard exclusion,” as this is key for a vaping shop, and you might need protection due to the vaping industry’s nature.

Vape Shop Insurance: Frequently Asked Questions

We’ve talked about our picks for the best vape shop insurance, but you might have a few questions on the topic. We gathered a few questions from the web, so let’s take a look at some of the most common ones.

Is vaping considered a tobacco product for insurance?

Generally, yes, most insurers classify vaping devices and e-cig as tobacco products due to some e-juices containing nicotine. However, business insurance sometimes differentiates between cannabis, hemp, tobacco, and vaping devices.

How much do smoke shops pay for insurance? 

The average price of a standard general liability policy for smoke shops ranges anywhere between $75 and up to $100 per month. This depends on location, size, payroll, and other clauses, which can make the policy cheaper or more expensive.

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An enthusiast of dry herb vaping, discovering new novel cannabinoids, and educating readers on everything canna-culture. You will find Mateo' work across Vapes and other trusted vape review blogs.

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