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Smoke Shop and Vape Shop Insurance

Much of today’s smoke shops are more than just retail establishments. Smoke shops are a place where people frequently go to and enjoy socialization over cigars or cigarettes. When customers spend time in a smoke shop, there is an increased exposure to liability because they can get hurt or damage property while they are in your store.

Also, smoke shops also carry flammable items such as butane lighters and refills and other shops allow customers to smoke in their store premises. The risk of fire damage is significant compared to other retail establishments.

What is Covered with a Smoke Shop Insurance?

Operating a tobacco or vape shop involves certain risks due to high customer traffic, increasing the chance of theft and injuries on-site. It’s crucial to understand and manage these risks with the right insurance coverage.

Essential Insurance Policies for Tobacco and Vape Shops

General Liability Insurance

This insurance is critical as it covers injuries or damages occurring on your premises. Given the high foot traffic in tobacco and vape shops, the risk of accidents is considerable. General liability insurance also protects against damages caused by your products, like electronic smoking devices or nicotine liquids, which could malfunction and injure a customer. Additionally, it covers claims such as false arrest or discrimination, which could occur during incidents with suspected shoplifters.


  • A customer trips and injures himself inside your shop; general liability insurance would cover medical and legal costs.
  • A defective product sold by your shop causes an injury; this insurance would handle the associated costs.
  • Accusations of false arrest or discrimination against a shopper are also covered under this policy.

Workers’ Compensation Insurance

This insurance provides benefits to employees who suffer work-related injuries or illnesses. It covers medical expenses, rehabilitation, and lost wages. In a tobacco or vape shop, workers might handle hazardous materials, increasing their risk of accidents.


  • An employee is injured while extinguishing a fire started by a customer, and workers’ compensation insurance would cover his medical treatment and lost wages.

Commercial Property Insurance

Important for protecting your store’s physical assets, this insurance covers damages to your property and inventory from fires, theft, and other disasters.


  • A fire damages your store and inventory due to an electrical fault, and this insurance would cover the costs of repairs and replacement.

Commercial Crime Insurance

This covers losses from crimes like theft, burglary, and fraud, including those committed by employees.


  • A robbery at your store results in financial losses covered by this insurance.

Business Income Insurance

Also known as business interruption insurance, it helps cover lost income and operating expenses if your store must temporarily close due to damage from a covered peril.


  • Damage from a storm forces your store to close temporarily; this insurance helps pay ongoing expenses.

Additional Insurance Options

  • Hired and Non-Owned Auto Insurance: Essential if your business uses rented or personal vehicles for business purposes.
  • Cyber Liability Insurance: Protects against losses from cyber threats, crucial if you process payments or operate online.
  • Inland Marine Insurance: Covers damage to goods in transit, important for shops transporting merchandise.

Pricing and Quotes

Insurance costs vary based on your shop’s size, location, industry, and risk factors. Higher-risk businesses generally face higher premiums. It’s advisable to compare quotes from several insurers to find the best rates and coverage.

About Cover Cannabis

For specialized insurance needs in the cannabis industry, including dispensaries and cultivation operations, consider Cover Cannabis. They offer tailored insurance solutions like General Liability and Workers’ Compensation Insurance, addressing the unique needs of the cannabis sector.

This revised article outlines the necessary insurance coverages for smoke shops, tobacco shops and vape shops, ensuring your business is well-protected against potential risks.

Our expert agents have the understanding and experience with the smoke shop insurance industry and are able to provide you the insurance coverage your suited best to your smoke shop business. One insurance coverage will not fit all, contact Cover Cannabis to find out more!