Vape shops and vaping companies require electronic cigarette insurance. This isn’t like other industries. For one thing, it’s seemingly always under attack by one anti vape organization or another. Our insurance might not be able to keep someone from bringing a suit against you or stop all of the misinformation out there about vaping and vape products. However, with our insurance, we can help to protect your particular vaping company, employees and more. Our insurance has your back so that you can focus on your business.
Vape Insurance
Vaping, even at this time, is seen as “new” in our culture. That can be incredibly exciting, as it has advanced a long way in a short period of time. However, it also means that there are plenty of threats against vaping and vape shop owners as well. Since many people don’t fully understand vaping, they may back laws, regulations, and actions that could have an adverse effect on vaping. The same goes for people whose power may be threatened by vaping.
We understand that you did not get into the vaping industry to buy insurance. That’s why our professionals are glad to answer any questions that you might have. We can help you to figure out which of our insurance options are right for you and your business at this particular time. That may change, but we can guide you towards the correct option at this moment in time.
Potential Threats
As of this writing, a federal District Court Judge ruled that vaping manufacturers must submit what are called “PMTAs” within ten months or be forced to remove their products from the market. “PMTA” stands for “premarket tobacco applications.” You might think “well, what’s the big deal, why don’t they just submit that?” To date, not one vape manufacturer has submitted a PMTA. This is with good reason: it’s not worth it.
Submitting a PMTA is no small thing. On average, these cost vape manufacturers more than one million dollars per single application. That’s a combination of all of the analysis, research and more that goes into sending one of these. Many smaller vape manufacturers are doing well, yes, but that doesn’t mean that they have one million dollars lying around that they can spend on these applications. Even if these manufacturers were able to get together the one million dollars, there’s no guarantee that the FDA would have their back on this, either.
In some ways, this ruling feels like a shakedown: a way to clear the path for the vape manufacturers that are able to foot the one million dollar bill. Those companies, of course, are typically the enormous companies that also have plenty of tobacco business as well. This ruling isn’t so much about “public health” as it is winnowing down the vape industry to a few large companies.
You might read this and think: “how does this necessarily impact me? I run a small vape shop.” Indeed, as of this moment, it might not. However, in the future, it potentially could quite a bit. Maybe one of the vape products that you sell doesn’t have this FDA backing, or there’s some other small technicality that keeps it from being perfectly in compliance with whatever the law is on that day. To be clear, this doesn’t mean that all of a sudden, vape products from small manufacturers won’t be available tomorrow. The Judge’s order did say that manufacturers who submit an application by May 11, 2020, can leave products on the market for up to a year. That may sound like a reprieve, but when you’re running a business, “you may have to take these products off the market soon” is the kind of chaos that’s not conducive to a business going smoothly. It’s possible that the FDA will file a Notice of Appeal, but it’s also quite possible they won’t, as well.
If They Can Come for Advertisers, They Can Come for You
Some vape shop owners believe that authorities are focused on the bigger companies, the manufacturers, and not them. However, recent news stories have proven that to not necessarily be the case. For example, within the last month or so, the Massachusetts Attorney General sued vape manufacturer Eonsmoke for “selling products online without proper age verification and marketing its JUUL-compatible pods and devices to minors.” That’s bad enough. What’s particularly distressing is that the Attorney General didn’t actually go after JUUL, but just this company who made “compatible” products.
While this is probably just the Attorney General saving face, it’s still troublesome. Last year, the Attorney General said that they would go over JUUL, and of course in the time since they have nothing to go after JUUL for. However, the Attorney General can go after a smaller company. Again, this might not seem like a problem if you’re a small vape manufacturer or someone that runs their own vape shop. However, you might be in the crosshairs next.
Consider this comment from the Attorney General: “Our investigations into JUUL and other e-cigarette retailers continue as we seek to hold companies accountable for marketing these addictive and dangerous products to minors.” While it’s doubtful they’ll ever be able to bring something against JUUL, they might be able to come after a smaller company like yours. Who’s to say where the line to “hold companies accountable for marketing” really is? Today, they’re going after Eonsmoke, but tomorrow they could be coming for you as well.
For example, in our General Liability Insurance policy, there’s a “Personal / Advertising Injury” included. When product liability lawsuits come after your vaping company, this can give your company the protection it needs to emerge unscathed. This has helped so many different vape shop owners, including those that have been faced with several charges of alleged consumer rights violations. Basically, a vape shops can’t afford to be without this policy today. That’s to say nothing of what the environment could be like in a few years.
Calco Insurance
Over the years, we’ve found that not enough vape shop owners are aware that they’re responsible for the products they sell. That’s true no matter what, full stop. “Strict Liability” law is exactly what it sounds like: strict. So, even if your company didn’t manufacture the vape products that hurt someone, even if they didn’t import them, you would still be held responsible and liable. Vaping seems to have more threats against it, as of this writing, than plenty of other industries. Our insurance helps to make sure that you can withstand whatever may come your way.
We also offer many kinds of insurance specifically for vaping companies that don’t just have to do with vaping. For example, we can help you to set up workers’ comp insurance, too. In plenty of states all across the county, if you have at least one employee, you need to get workers’ comp insurance. Instead of going through an insurance company that doesn’t understand or even trust vaping, turn to the go-to-broker for vape insurance. After all, many of us vape as well. So, we have a vested interest in making sure that your vape business succeeds. We’re proud to offer the best policies available to us from insurance companies all across the globe.
Even despite a few bad news stories, vaping is growing. With the right insurance, your company can continue growing, too. To talk about which vape insurance policies are right for you at this current time, call us at (877) 678-0201.
