There are two types of policies you can purchase. A (CGL) Commercial General Liability insurance policy including Product/Completed Operations (AKA Product Liability) or a CGL policy which will Exclude Products/Completed Operations coverage.
What is the difference?
A CGL policy with Products/Completed Operations coverage provides coverage in the event a product you sold you causes an injury. The injury can be an exploding battery or a health injury.
A CGL policy without Products/Completed Operations coverage will exclude any claims arising from a product you sold.
BUT YOU DIDN’T MANUFACTURE IT!
The strict liability law in the United States holds all parties responsible for an injury. Your vape shop may be a small operation, but selling hundreds of products means being liable for all of them.
Vape Shop owners should require all of their suppliers to list them as an Additional Insured on a Vendors form with a Primary Non-contributory Endorsement. This type of endorsement will force the suppliers insurer coverage to be first and non-contributory to your insurance policy.
Products/Completed Operations AKA Product Liability and how to buy the right policy:
This is HUGE so make sure you read the fine print when buying. Some policies may offer the coverage but add an Exclusion such as a Health Hazard Exclusion, Battery Exclusions, Inhalation Exclusion, etc.
The KEY is to understand what you are buying. If you don’t and need the assistance of a vape shop insurance broker then give us a call at (877) 678-0201 or request a vape shop insurance quote.
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