Vape shop insurance

Insurance for vape shops and retailers

The vape industry is currently worth around £1bn in the UK. With roughly 2,900 specialist vape stores, the UK is the second largest market in the world.¹

Running an e-cigarette or vape shop can be demanding. Not only do you have extra laws to contend with, you must also ensure have the right cover in place to protect your business should the worst happen.

Many of the risks your vape shop faces are the same as those faced by other retailers. There are also some specific risks associated with making or selling e-cigarettes and vape products that mean you need insurance specifically tailored to your business.

Key risks to vape shops:

• Product safety: if a product you have sold is unsafe and causes personal injury or death to any person, or damage to private property, you could be sued for compensation.
• Crime: With the number of vape shops growing rapidly, they are becoming increasingly attractive to thieves.² This includes vaping and e-cigarette stock, equipment and cash.
• Investigations by regulators: The Tobacco Products Directive introduced minimum standards for the safety and quality of all e-cigarettes and refill containers. As the industry continues to grow, regulatory investigations are becoming more prevalent.

How our vape shop insurance experts can help

Our experienced team has the industry knowledge required to tailor an insurance package to suit your individual needs. Whether you specialise in device retailing, e-liquid retailing, wholesaling or online distribution, we will work to find you the right policy.

Types of vape shop insurance cover

• Product liability – protects your business against damage caused to third party property and bodily injury (conditions apply).
• Public liability – covers you for the cost of a claim arising from a suffered injury or property damage caused by you or your employees.
• Employers liability – compulsory by law for most businesses. Employers liability provides cover if a worker suffers an injury or an illness they believe is your fault.
• Premises insurance – protects your business premises from escape of water, accidental damage, fire and more (see policy wording for full details).
• Stock cover – covers the costs of replacing your stock if any of it is lost, stolen or damaged.
• Cyber liability – protects your business from cyber-criminal activity such as hacking and cyber extortion, along with the legal and reputational fall-out caused from a data breach.
• Directors and officers – also known as management liability portfolio insurance (MLP), provides any director, partner or employee acting in a managerial capacity on behalf of the company, for defence costs incurred during a claim and awards made against you personally.
• Goods in transit insurance and commercial vehicle – covers products from theft, loss or damage while they are being transported.
• Marine – covers imports and exports.