Vape Shop Insurance & Risk Management

professional vape shop insurance risk management

Operating a Vape Shop comes with certain liabilities and risk. Besides the basic exposures of a brick and mortar shop such as fire, theft, and slip and falls. A Vape Shop also has the complex exposure to hazards associated with the inhalation of a chemical mixture of PG, VG, flavoring, and nicotine.

Standard Risks:

1. The slip & fall claims: have policies and procedures in place for employees to follow when it comes to any liquid spilled on the floors or leaving objects in a pathway.

2. Fires: your should have an “off” switch that will disconnect all chargers connected to a power strip. Don’t leave anything else plugged in, exception being the refrigerator, computer, servers, and power to the alarm.

3. Employee Safety: OSHA has guidelines which you must follow and provide a safe work place. Employees can sue as well and unlike consumer lawsuits you can be held criminally liable for gross negligence. Always maintain workers compensation insurance and (EPLI) Employement Practices Liability Insurance. EPLI provides coverage against allegations of sexual harassment, hiring and firing practices.

Complex Risk:

1. Health Hazard: it has been unequivocally proven that vaping is significantly less harmful than vaping. The cost to defend a lawsuit that alleges popcorn lung or other type of health injury will be very costly and impossible to fight. Solution: have warning posted in all areas of your shop and have a warning the receipt.

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Vape Shop Insurance & Risk Management: Common Injuries

2. Battery Explosions: the most common injury arises out of individuals placing an 18650 battery in their pocket. Most batteries do not have an explicit warning against this. When an explosion happens the consequences are severe. Solution: have warnings posted about battery safety at various locations in the shop and if possible create a warning to attach to the battery.