As a specialist in the vape insurance market, we want to be clear that e-cigarette shops and associated vaping businesses can face unique risks and that retail insurance for a vape shop isn’t necessarily the best fit.
Some of the specific areas you may need to look at as a manufacturer or retailer working in the vape industry include:
• Ensuring you have cover in place if you source e-liquids and accessories mainly from outside the UK
• Manufacturing risks related to e-cigarettes and vaping accessories
• Internet sales of e-cigarettes and vaping accessories
So, what are the key areas you should be considering when it comes to vape insurance?
Product liability
This should be a key area of focus for retailers as well as manufacturers, distributors and suppliers. And is something that we blogged about recently when news hit the headlines of a vaping accident in the US. Given that manufacturers are liable for consumer claims relating to personal and property injury this is a risk that needs to be taken seriously. Without insurance the reliance is on the manufacturer to pay any claims and costs associated with defending them.
Product liability insurance typically covers a manufacturers liability to pay damages in the instances of death, personal injury or property damage and address risks such as
• Consumer claims relating to death or injury caused by an e-cigarette product;
• Consumer or customer claims for property damage e.g. claims that a fire was caused by an e-cigarette in a home, workplace or in a warehouse or shop.
Product recall insurance
This can prove beneficial in cases where a manufacturer has to initiate a product recall because, for example, an e-cigarette or component part of a vape device is found to be faulty and therefore pose a risk of both personal and property damage.
Product recall insurance will typically cover costs associated with the initiation of a recall; from communication costs through to uplift costs. And since the burden of product recall falls on manufacturers who are based in the UK it could be of importance to your business.
Regulatory and Liability
Given that as an industry, vaping is still relatively new and despite the fact that many bodies have supported vaping stating that e-cigarettes are 95% less harmful than smoking there is the potential that in the future regulatory and liability litigation may be aimed at manufacturers and suppliers of vaping and e-cigarette products. Therefore, having insurance in place to cover these potential risks may be prudent.
Given how new the vaping industry is, some insurers still have limited experience of vaping businesses and as a result may not always assess the risks adequately. It’s important that you give careful consideration to the broker you use to organise your vape insurance. As the approved broker to the IBVTA Anthony Jones will work hard on your behalf to ensure you have adequate cover in place to insure your key risks.
