Canada’s vape and e-cigarette market has grown in popularity due to an increased demand for alternatives to traditional tobacco smoking products. According to Statista, the market is projected to see a 3.93% compounded annual growth rate between 2024 and 2028.
As a vape or e-cigarette business owner, you sell high-valued and unique products. These specialty products also come with complex risks and strict Health Canada regulations, putting your store under the microscope for everything you sell.
Your vape store inventory is likely more valuable and expensive than what is typically found in a traditional tobacco store, so protecting your products should be one of your top priorities.
Without the proper insurance protection in place, you can be left on the hook for claims such as injuries, theft, damage, and lawsuits. These claims can result in extra downtime to recover and can be financially devastating to your business.
The relatively new methods of vaping and lack of science and historical data available can make finding the right vape insurance a challenge. Luckily, there is still vape insurance available in Canada that will help protect your business and financial assets in the event that you do experience a claim.
Types of coverage to consider for your vape or e-cigarette business:
Whether you sell, manufacture or distribute vaporizer and smoke products, some of the main coverage types you should consider when building your insurance package are:
- Commercial General Liability: This provides coverage for third-party bodily injury or property damage claims that may occur at your store. This could be from a customer slipping or falling in your shop or if their personal property is damaged on your premises. Keep an eye out for liability exclusions such as coverage of bodily injury or property damage caused by vaping products.
- Commercial Property: This provides coverage for your vape retail store(s), whether you own, lease or rent the space. Commercial property insurance provides coverage for physical loss or damage to your property and its contents caused by fire, windstorm, hail, theft, vandalism and other perils.
- Business Interruption: This can provide coverage for the income lost when your normal business operations are interrupted or stopped altogether. This interruption or damage must be caused by or be a direct result of a covered cause of loss, which are the same causes of loss found in your Commercial Property policy.
You can also ask your insurance broker about Cyber Liability and Product Liability coverage to see if they are available and a good fit for your business.
How much does vape business insurance cost?
The cost of your insurance will vary based on a number of factors unique to your business. These factors include years of experience, annual revenue, business location, type of products sold and your claims history.
How do I get started?
To get started on your quote, fill out our secure online insurance application form and select your type of e-cigarette business from the drop down, whether that be a retail store, wholesaling or manufacturing. This form will ask the exact questions we need to know in order to offer you an indication on quotes. We will be in touch once the form is received, but if you need help along the way, we are happy to answer your questions over the phone at 1-866-387-FUSE (3873) or over email at info@fuseinsurance.ca.
Why go with Fuse Insurance?
With over 20 years of combined experience in insurance for controlled substances, our brokerage is knowledgeable in the complexities of insuring a vape, smoke or e-cigarette business. We are one of the leading providers of vape insurance in Canada and offer an exclusive vape insurance program with preferred rates. Our brokerage is also 100% independently owned, meaning we can provide you with expert advice and choice from multiple insurance providers. We are a licensed insurance brokerage in BC, AB, SK, MB, NB with wholesale operations in ON and The Maritimes.
