Business Insurance for the Vape Industry
Vape suppliers, including vape retail shops, manufacturers, distributors and wholesalers, form an integral part of the UK vape industry. Providing business insurance for each of these vape suppliers is a specialist area that requires expert knowledge and experience from your insurance broker. QuoteRack provides you with direct contact with an FCA authorised and regulated UK-based insurance broker that specialises in insuring vape businesses, enabling you to compare quotes and cover for your vape business, wherever in the supply chain your company is placed.
Vape Shop Insurance
As a vape-shop owner selling e-cigarettes, e-liquids and vaping accessories, you’ll probably be aware already that vape shop insurance needs to cover not only the usual retail side of the business, but also the higher risk cover for potential health and safety issues arising from the sale of vaping equipment.
Whereas e-cigarettes were once considered a passing fad, they have now become more established as an alternative and arguably ‘healthier’ way for people to smoke cigarettes, albeit in electronic, ‘e-liquid’ form.
Vape Manufacturers' Insurance
As manufacturers, the vape production process that you oversee supports not only your own business and staff, but also the downstream businesses too, including the warehouses, distribution businesses and retail vape shops. You might manufacture the vapes from end to end, or just some of the components, but whatever your role, you rely upon the delivery of raw materials to ensure that your production can be maintained.
Keeping the show on the road means that you and your business needs the reassurance of having in place the right levels of vape manufacturer insurance, just in case the worst happens. Our specialist insurance broker knows the vape business well and will be happy to discuss with you the various options available to you, to ensure your business is covered for the risks associated with manufacturing vapes and related accessories.
Vape Warehouse Insurance
As bulk suppliers of vape-related goods to retailers and distributors, you are likely to carry significant quantities of various types of vape products, including e-cigarettes, disposable and rechargeable vape pens and kits, vape 'juice' or liquids, as well as the associated accessories such as battery chargers, vape cotton and coil wires.
The potential loss to you if any of your stock was damaged or stolen is therefore significant. Ensuring you have an appropriate level of vape warehouse insurance cover for not only the value of your stock at any one time, but also the additional costs of public liability insurance, employer's liability insurance and any vehicles you might have - these are all factors that an insurer will take into consideration when arriving at an insurance premium to your vape warehouse business. Being able to talk directly to an insurance broker that specialises in the types of insurance you need is available to you through QuoteRack.
Vape Distributor Insurance
Acting as an intermediary between vape wholesalers and retailers, your vape distribution business relies on established relationships with both ends of the vape supply chain. Buying vape products in bulk from your wholesalers or direct from the manufacturers for onwards supply to your retail clients requires you to keep a sizeable amount of stock available.
That outlay represents a significant investment and one that you would want to protect. On top of these costs, you also have the additional insurance costs associated with running any business - public and employer's liability, buildings insurance, vehicle insurance to name but a few - getting the right advice from your business's insurance broker is key to minimising your costs while optimising the vape distributor insurance cover you need to keep your business fully protected against the unexpected and unwanted.
How can I compare prices for vape business insurance?
With vape suppliers and users now rapidly increasing in numbers, the availability of reasonably priced vape insurance has also grown, with some insurers taking a view on the potential issues arising from supplying e-cigarettes to the public. Issues relating to the health and safety hazards of vaping e-cigarettes has deterred several insurers from offering terms for vape business insurance policies, but fortunately QuoteRack can help you to obtain and compare quotes from insurers who are prepared to offer cover to vape shops, manufacturers and wholesalers.
What insurance cover do I need as a vape supplier?
As with any business insurance policy, you will need insurance cover for:
- Public liability – this provides cover in the event that a member of the public has an accident in your vape business and for any liability arising from a claim made against you.
- Employer’s liability – this is a legal requirement if you employ any staff
- Product liability – this is a critically important insurance product that you can request from your insurance broker. If anything you manufacture, wholesale or sell in your vape shop - e-cigarettes, e-liquids, vaping accessories – causes an injury, illness or harm through being faulty or poorly made, you could be liable for a claim of compensation from your customers. Product liability insurance is usually included as a matter of course when purchasing public liability insurance. However, where e-cigarettes are involved, this cover can be excluded by some insurers. You should ask your insurance broker whether product liability, with specific mention of e-cigarette insurance, is included within your cover.
- Business premises cover – this might be included under the terms of your lease, but you should check to make sure your business premises are insured.
- Stock insurance – protects your stock of e-cigarettes and other equipment from damage
- Theft cover – protects you against the cost of replacing stock that is stolen
- Glass cover – for retailers, the glass frontage of the vape shop can be replaced if damaged, under this cover
- Directors and officers (D&O) insurance – this cover protects you from liability for issues arising from the running of your business
- Goods in transit insurance – if you transport goods, stock and equipment, you might want to consider goods in transit cover.
- Van insurance – cover for your company’s vans, used in the course of running your e-cigarette business
Vape Shop, Manufacturer and Wholesaler Business Insurance FAQs
Theft of small, high value items such as e-cigarettes is a major risk for vape shop owners, manufacturers and distributors, either by visitors or, occasionally, by employees. As demand and popularity for e-cigs has grown, so has their availability on the black market. As a vaping equipment supplier, you should make sure that your vape insurance covers you for theft of such items. Talking through your options with a QuoteRack broker will help you to decide what cover is most suitable for your vaping business insurance.
The potential for fire damage caused by e-cigarettes catching fire or exploding is one reason why vape business insurance can be more expensive than conventional shops, manufacturers and warehouses. How the stock is stored, the fire control methods fitted – alarms, sprinkler systems – will all have an effect on the insurance cover and premium you are quoted.
There are several factors, several specific to vape business insurance, that can affect how much you will need to pay to cover your vape business. With the number of insurers prepared to offer full cover for all aspects of vape insurance relatively limited, comparing business insurance quotes for vaping retailers is not always straightforward and vape suppliers and business owners can benefit from consulting insurance brokers who specialise in this type of insurance.
QuoteRack works closely with a highly specialised and expert independent insurance broker who is familiar with vape shop insurance and the range of e-cigarette insurance products and cover that you are likely to need. Enquire with us today, and QuoteRack’s approved broker will find the most effective and economical insurance quotes for you.