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What Does Liability Insurance Cover for E-Cigarette Retailers and Manufacturers?

23. April 2013 08:42

Since bans on indoor smoking have taken effect in most of the country, Americans have been looking for alternatives to tobacco cigarettes. In recent months, electronic cigarettes (also known as e-cigarettes, personal vaporizers, atomizers, and rechargeable cigarettes) have mushroomed in popularity.

These devices allow smokers to get their fix without producing any smoke, which makes them a workable alternative for public places where smoking isn’t allowed. Unsurprisingly, enterprising manufacturers and retailers are scrambling to meet the increasing demand. As with the adoption of any new product, of course, the question arises: what kind of liability insurance do e-cigarette manufacturers and retailers need to protect their businesses?

Here’s an overview of what to look for in your liability insurance policy.

Essential Liability Insurance for E-Cigarette Manufacturers and Retailers

Business owners involved with manufacturing or selling electronic cigarettes should consider the following types of business liability insurance…

Do I Need Business Liability Insurance for My E-Cigarette Business?

If you’re selling or producing e-cigarettes, it’s generally a good idea to carry business insurance. Without such protection, you could face tens of thousands of dollars in fines or court costs if and when someone (e.g., a disgruntled client) sues you.

While buying insurance may seem like a luxury, especially if you’re still establishing yourself in the industry, the cost of not covering yourself can be far greater. Think what would happen if one of your suppliers were suddenly unable to provide you with the supplies you depend on? Many General Liability policies include a type of coverage called Business Interruption Insurance that provides you income in just such an event.

If you’re really strapped for cash, ask your insurance agent about how you might be able to save money by purchasing a discounted Business Owner’s Policy.

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Manufacturers | Retail | Risk Management

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