Why you need E-Liquid Insurance coverage?
- Health Claims: cancer, heart disease, or any other illness. Yes, these could of been caused by prior tobacco use or unhealthy lifestyle. In civil court all the plaintiff has to do is “allege”. You would have to prove scientifically using expert witness that the e-liquid you sold did not have a partial cause. This process would likely be costly and unsuccessful.
- Marketing Claims: many companies have already been sued for not disclosing ingredients in their e-liquids. Other lawsuits alleged that e-liquid company violated state consumer protection and business competitiveness laws.
An e-liquid insurance or a e-juice insurance policy from CALCO will provide protection to your company which will allow you to focus and grow your business.
How to buy insurance coverage for your E-Liquid/E-Juice company:
Always purchase a General Liability Insurance policy which includes:
- Personal/Advertising Injury: product liability lawsuits include multiple charges of alleged consumer rights violations. Not having this coverage or having this coverage limited by an insurance company would be like renting a Ferrari and not buying collision coverage.
- Products/Completed Operations: this is also known as Product Liability. The e-liquid insurance policy must include Vape Product Liability Insurance without a Health Hazard Exclusion.
Do you manufacture or purchase private labeled E-Liquids or E-juice?
Below are some tips (not requirements) for companies seeking to lower their liability exposure:
- Ingredient suppliers – Test the base ingredients such as PG, VG, flavoring and nicotine for contaminants.
- Bottle suppliers – Bottles should be sterile.
- Labeling – Comply with the FDA labeling requirements and in addition if you are selling in California your E-Liquids/E-Juice label must have the CA Prop 65 Warning. Ensure that the nicotine volume is accurately labeled.
- Finished product – If your company name is on the product you are liable. Ensure safety and efficacy by batch testing the E-Liquid/E-Juice.
- Compliance – Make sure that your private label manufacture is compliant with the FDA and OSHA. With regards to OSHA, if the e-liquid manufacturer violates employee safety laws OSHA can suspend their operation which would end your supply. We are aware of multiple instances in which OSHA suspended operations of e-liquid manufacturers.
- Labeling – FDA & State labeling requirements are your responsibility not the manufacturers.
Health Hazard Risks of E-Liquids and the Role of Insurance
The vast majority of those who vape are former smokers. The former smokers have known or unknown underlining medical conditions. In the even of a Health Hazard Claim, it would not be financially feasible to prove that it was the smoking, not the E-Liquid which caused the injury. We all know that vaping is much more safer alternative than smoking. However, it is not too difficult to get sued. It can all start with a misdiagnosis from an uninformed physician. An E-Liquid Insurance policy without a Health Hazard Exclusion would provide coverage and allow you to focus on your business.
Here is an example:
A West Virginia woman was diagnosed and treated for Lipoid Pneumonia because the physician suspected that the Vegetable Glycerin/Glycerol was an oil. VG is derived from vegetables and has an oily texture but it is actually a type of alcohol. People who suffer Lipoid Pneumonia are typically those who spend extended periods of time in front of commercial fryers inhaling oil vapors. With that said, the physicians misdiagnosis and a significant hospital bill is a recipe for a lawsuit. A Health Hazard lawsuit is often very costly if you loose, as the plaintiff will likely to require a lifetime of continued care. Even if you can win a Health Hazard lawsuit it would be very cost and time consuming. As it will require a vigorous defense and a long list of scientific expert witnesses.
If you are looking for other types of vape insurance visit our home page. You can also call us at (877) 678-0201. Monday to Friday 9 am to 5 pm Pacific Time.