Smoke, Tobacco, and Vape Shop Insurance

Smoke, tobacco, and vape shops are popping up all over Canada. The stores specialize in tobacco and non-tobacco products, such as vaporizers, electronic cigarettes, e-liquid, cigarettes, cigars, and chewing tobacco. If you own one of these businesses, you know Canadian government officials are continuously changing the laws associated with tobacco and non-tobacco products. And, this is not to mention the non-government agencies that are fighting for the ban of tobacco-based products. 

Knowing and staying on top of the tobacco laws can be time-consuming. But, as a vendor of tobacco and vape products, your job is to protect Canadian consumers while obeying the laws. This is one tough job with the ever-changing tobacco laws, which is why business insurance is so important.

Another important job duty smoke, tobacco, and vape shop owners have is obtaining retail insurance coverage. The first step of the process is finding the right insurance company. ProfessionalsCoverage is one of Canada’s top insurers. These experts know the ins and outs of business insurance for smoke, tobacco, and vape shops. First and foremost, you need to know your insurance options. To help jumpstart this effort, ProfessionalsCoverage has compiled a list of must-have policies for your smoke shop.


Business Owner’s Policy (BOP)

It is highly recommended to begin with a basic BOP, adding on additional policies as you see fit until you end up with a solid insurance plan that will guarantee full coverage for all your risk factors. Like retail, grocery, and specialty stores, smoke, tobacco, and vape shops have a long list of risk factors. One particular risk that land-based smoke shops face on a daily basis is onsite accidents. For example, a customer entering your store bumps her head on a storage cabinet. The bump left a 2.5-inch laceration across the customer’s forehead, requiring six stitches. What do you think the outcome was for the injured customer and business? 

Fortunately, the smoke shop was covered under a BOP at the time of the accident. The owner filed a claim with his insurer which in turn initiated an investigation to determine who was libel. It is no big surprise that the shop owner is found to be at fault. Even though the shop owner had nothing to do with the accident, it took place on his property.


What is covered under BOP? 

  • Slips, falls, and other onsite accidents
  • Third-party property damage
  • Theft of business property (inventory)


If the shop owner was uninsured, he would have been responsible for 100% of the injured customer’s medical bills.


Umbrella/Excess Liability Insurance – Covers Third-Party Lawsuit Expenses

The Umbrella insurance policy is another must-have for smoke shops. The policy is specifically designed to protect businesses from financial loss associated with third-party lawsuits. This is a unique policy, as it picks up where general liability insurance leaves off. For example, a customer is injured while stooping down to pick up his billfold. Your general liability insurance covered most or all of the injured customer’s medical expenses. But, this does not satisfy the injured customer, so he files a lawsuit against your smoke shop. 

An umbrella policy begins when a general liability policy stops. The policy will cover up to $1 million per incident. This basically means it will cover your legal expenses up to $1 million.


General Liability Insurance

General liability insurance is specifically designed to protect smoke, tobacco, and vape shops from financial loss associated with third-party claims and lawsuits. Like BOP, general liability insurance covers accidents that take place on the business property. It also covers client property damage expenses, as well as damage related to faulty products. Say a customer purchases a vaporizer from your smoke shop. The vaporizer malfunctions when powering up causing significant damage to the customer’s sofa. Who is responsible for this mishap? Again, the shop owner because the vaporizer originated from his store. The manufacturer may also be at fault, which will be determined by a judge.

General liability insurance covers the following:

  • Third-party bodily injury and property damage
  • Damage related to faulty products
  • Damage caused by advertising practices


Worker’s Compensation Insurance – Protects Shop Owners And Their Customers

The Canadian government requires all business owners, including smoke, tobacco, and vape shops to carry worker’s compensation insurance. You should not look at this policy as a government requirement. But, as a form of protection for your employees and company. This policy acts as a dual insurance place, as it covers businesses and workers in certain situations. For example, a worker is electrocuted while testing an electrical outlet in the workplace. The electrocution left the worker with serious injuries, which just happens to be covered under worker’s compensation insurance.

Worker’s compensation insurance also covers:

  • Injured workers’ missed wages
  • Injured workers’ medical expenses
  • Lawsuits associated with workplace injuries


Contact ProfessionalsCoverage To Request A Free Quote

Insurance is a complicated topic, which is where ProfessionalsCoverage comes into play. We are the smoke, tobacco, and vape shops insurance specialists. We will assist you in customizing a business policy that will meet or exceed your insurance needs. We offer free quotes per request. Our goal is to see that every Canadian smoke shop is fully covered. 

Remember, we are only a phone call away.




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