What Insurance Do Toronto Vape Shops Need

What Insurance Do Toronto Vape Shops Need?

September 12, 2024 / 5 mins read

Vape shops face risks that are related to the sale and use of vaping products. Vape insurance provides financial protection should there be legal claims and lawsuits against your Toronto vape business.

Vape insurance can be customized to suit the needs of your Toronto vape business.

Are you in Toronto, the Greater Toronto Area, or elsewhere in Ontario? Western Financial Group is a national insurance broker that has partnered with Canada’s leading insurers to meet your business insurance needs as a vape store owner.

Our business insurance experts do the insurance shopping for you to get you a competitive insurance quote that suits your needs as a Toronto vape store owner.

What is vaping?

The government of Canada says vaping is the act of inhaling and exhaling an aerosol produced by a vaping product, such as an electronic cigarette. Vaping doesn't require burning like cigarette smoking.

Vaping products don’t contain tobacco, but the nicotine that is used in vaping liquids often comes from tobacco plants.

The term "vaping" is also used to refer to the inhalation of cannabis aerosols.

Vaping products have a lot of different names, such as vape pens, vape pods, mods, pod-mods, e-hookas, electronic and e-cigarettes, among others.

What is vape shop insurance?

Vape shop insurance is a customized package to protect you against legal action involving customer/supplier injuries and property damage, product lawsuits, cyber liability, as well as theft, vandalism, and fire damage, among other coverages.

How much does vape insurance cost?

There isn’t a set price to insure a Toronto vape business.

The following factors are usually considered when determining the cost of your Toronto vape shop insurance:

  • Your location
  • What vape products/liquids you sell
  • Your equipment
  • Annual revenues
  • Number of employees
  • Any past claims

How does vape insurance protect your Toronto vape business?

  1. Your vape store has been vandalized. Your commercial property insurance can help pay to repair the damage to the building.
  2. Your Toronto vape store’s client list has been hacked by cyber thieves. Your cyber liability insurance can help cover the cost of restoring your software system, notifying your clients, and covering any client lawsuits.
  3. A client claims that he had an adverse reaction to a liquid vaping product purchased at your Toronto vape shop and it made him sick. The client has sued you. Your product liability insurance can help cover your legal costs and the client’s medical expenses.

What’s in a vape store insurance package?

Product liability insurance

As a Toronto vape store owner, you are responsible for the products you sell, distribute, or manufacture.

Product liability insurance covers such things as design defects, manufacturing defects, and marketing missteps, such as improper labels. It also covers products that have insufficient warnings/information about potential harm.

Product liability insurance covers allegations and claims of third-party bodily injury or property damage caused by the vape products you provide to customers.

This type of insurance helps protect your vape store from a loss if you’re found legally liable for bodily injuries or property damage to a customer/supplier.

Commercial general liability (CGL) insurance

CGL insurance can help pay legal and medical costs if a customer is injured at your Toronto vape store; for example, they slip on wet floor or on an icy patch on your business’s sidewalk.

Without commercial liability insurance, you would be responsible for paying any liability costs out of your own pocket.

Your CGL policy also can help protect you from libel, slander, copyright infringement, and false advertising allegations.

You can expect to have at least $2 million in CGL coverage for your Toronto vape shop.

Commercial property insurance

Commercial property insurance provides financial support to replace or repair your Toronto vape store’s office f it is damaged by a flood, fire, or severe weather. It also covers vandalism and theft.

Commercial property insurance also covers store’s contents such as computers, furniture, tools, equipment, and inventory. Commercial property coverage also extends to protect others’ property that is under your care.

Cyber insurance

If your vape shop processes debit and credit card transactions, online or in person, you need cyber insurance. Your system could be vulnerable to cyberthieves.

Without cyber insurance, you will have to pay out of your pocket for the cost of restoring your computer system if it’s hacked.

You may also be liable for damages to third parties whose information has been stolen and you may have to pay for notification expenses to inform customers affected by a breach.

Business interruption insurance

This type of insurance supports you when your Toronto vape shop can’t operate due to a covered loss.

There are a number of losses that can force your vape shop to shut down. Some examples are:

  • Damage to your equipment from fire or vandalism
  • A major reduction in revenue due to a client/supplier facing losses of their own
  • A disruption in your supply chain

Business interruption insurance can help with these expenses:

  • Payroll
  • Rent
  • Utilities
  • Property taxes
  • Alarm monitoring
  • Relocation of your business

What do I do if I have a claim against my Toronto vape store?

  • Contact your broker immediately after any business-related mishap. Waiting to file a claim can confuse insurers about the severity of the damages to your business.
  • Know your policy so that when you contact your broker you are familiar with what will be covered or not.
  • Document the damage. Take photos right away and write down what happened.
  • Do not throw away damaged goods after taking photos. Keep the physical evidence so that your adjustor can see it.
  • Do not invite lawsuits. Don’t say anything that could be used against you, especially if you aren’t sure what happened.
  • Be honest about what your damaged property is worth. Damaged commercial property is generally valued according to its actual cash value or replacement value.

Here’s an insurance checklist:

  • Do you have the best Toronto business insurance rate that suits your work?
  • Do you have the right amount for your deductible and regularly review it to make sure it’s the right amount for you?
  • Are you or your employees using personal vehicles for work?

Western Financial Group has licensed BUSINESS INSURANCE EXPERTS to get you the right insurance coverage as a Toronto vape shop owner. Our experts are available now to help you navigate the business insurance journey to protect your Toronto business.

Talk to an Insurance Expert

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