Vape Insurance

CALCO Vape Insurance Highlights:

  • Specialized in Vape Insurance since 2008 – 99% of our clients are in the vape industry
  • Selected by SFATA (special discounts for SFATA members)
  • Discounts for VTA (Vapor Technology Association members)
  • Discounts for other trade associations
  • Lobbied in Washington D.C., and Los Angeles more than a dozen occasions
  • Co-authored insurance policy language which grants Health Hazard coverage to vape products
  • Provide Loss Control services including written warnings for your products
  • Active in major trade shows
  • Vape product liability insurance experts



Vaping is Good for Public Health

We can all agree from both from personal experience and the overwhelming scientific evidence that vapor products (i.e., electronic cigarettes, end’s) allow smokers who are unable or unwilling to quit, to switch to a product which is much less harmful. However, vaping products are still consumer products, which pose various type of hazards to the end user. The proper vape insurance policy will protect you from exploding battery and health hazard claims.

The main exposures of vapor products are:

Health Hazards/Product Liability: 99.9% of those who vape are former smokers. These former smokers all have known or unknown underlining health conditions from smoking. Most consumers can no longer sue tobacco companies for compensation under Strict Liability. The new targets will the vape companies. All it takes is a lawsuit alleging a health concern or diagnosis. In the civil legal system, you are essentially guilty and you must to prove at your own expense that you are innocent. The cost to defend yourself would be outrageous. It’s much worse if you decide to go to a jury trial. Imagine how a non-smoking/non-vaping jury would judge a vape company which makes flavored liquid nicotine.

Product Defects/Product Liability: batteries and vaporizers do not explode or vent by themselves. There is always a cause. Today, the most common claim we see is the exploding/venting 18650 battery. Strict Liability places the product liability on the manufacturer, distributor, and retailer if a product turns out to be defective or dangerous. A missing battery warning advising “Don’t put the batteries in your pocket or purse, contact with metals will cause battery to short and explode” is considered a defective and dangerous product. Unless you have vape product liability insurance expect to have an expensive up hill battle.

Personal/Advertising Liability: the first notable lawsuit filed against a vape company (NJOY) was for alleged consumer rights violations. The allegations included charges that their vape products were marketed as a safer alternative to tobacco products but failed to warn about the dangerous ingredients such as nicotine. A case like this involves years of expensive litigation. Future vape insurance claims will likely be more sophisticated involving additional ingredients which when vaporized produce toxic chemicals which are known to cause cancer or reproductive harm. Many companies have already been subject to the California Proposition 65 law suits. What starts in California eventually makes its way across the United States. There may be vape insurance brokers who may advise you that this coverage is not necessary. This is not true. Most vape product liability lawsuits include charges of alleged consumer rights violations which would only be covered by Personal/Advertising liability insurance.

How to protect yourself from a lawsuit?

The best course of action is to have a plan for your vape business. CALCO provides Warnings and Instructions on the safe use of vapor products. It’s best if at the point of sale the client is provided with these instructions in a digital form. Online purchases should always require the customer to accept the Vape Warnings & Instructions provided to them and they should also be emailed. At a brick and mortar location you should have a client management system which will require your client to accept the Vape Warnings & Instructions. It’s important to implement these risk management practices to avoid a lawsuit. The vape products you sell do not provide sufficient warnings. For example, many of the 18650 batteries do not include specific warnings about not placing the batteries in a pocket or purse. You can learn more about exploding batteries from our blog. As a seller of the battery you are liable for any injuries caused by the venting or the explosion. Maintaining a vape insurance policy will allow the vape insurance company to handle the claim, while you focus on growing your company.

How to choose the right Vape Insurance provider?

Since any insurance provider can label themselves as “vape insurance pro or a specialist” caution should be used when choosing an insurance broker/provider.

Our competitors sell inferior policies with many exclusions and limitations. You should ask important questions such as:

  • Are specific brands of batteries excluded from coverage? If “Yes”, is it clearly stated on their quote?
  • Is Personal/Advertising Injury coverage excluded or reduced? If “Yes” ask why and get it in writing.
  • Is E-Liquid insurance coverage restricted to a lower amount then the policy limit?

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TIP:

Calco Vape Insurance offer other types of coverages which you can find on our home page. The only type of coverage which is required by law is workers comp insurance. Be sure that you are classifying those who the state would see as employees as independent contractors. Start your vape insurance quote online or call us at (877)225-2699. We are available Monday to Friday 9am to 5pm Pacific Time.

 

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