One area of our business is the focus we have on the vaping sector. Much as we would like to simplify the process of arranging insurance for the sector we can’t! It is difficult so we do our best to help as quickly as we can and with as much clarity as we can. Specifically, it is Products Liability cover that is testing the whole of the insurance industry.
It is a real puzzle to us when we see that great marketing phrase “quick and easy” to arrange – it isn’t. There is nothing that quick and easy about arranging the correct cover for the vaping sector. Add to this the offer of “full cover” and buyers might take that literally until reading the small print – buyers beware!
So, what do we mean and why are we telling you this?
There are markets that say they are offering full Products Liability cover. In our view this is misleading at best and simply wrong at worst. Our experience is that the insurance market is unable to consciously respond to Full Products Cover for E-Cigarette and CBD products.
Typically, Products Liability is totally excluded from cover. Alternatively, insurers restrict liability by doing one of, or all, the following:
- A Rights of Recourse Condition (full legal rights in place against a manufacturer or supplier – unlikely)
- A Mixing and Blending Exclusion – no liability arising from that
- A Cannabidiol (CBD) Exclusion – another no no
- Restricting products manufactured in UK and imports from Europe and USA
- A Health Exclusion
It is taking longer to get underwriters to provide quotations and /or renewal terms. The complexity of what you are doing, and scale and scope of your operation is the most obvious factor but expect insurers to want to know as a minimum:
- Full Business Description
- Turnover split between different areas and territories
- Route to market
- Stock details – hardware types, e liquids, accessories
- Where stock originates from – UK, Europe, USA, China/Far East
- Premises details – security
Long and short of it all is that the more time we have the better chance of obtaining the best terms and premium for you.