Product Liability Insurance
Product liability is the defining exposure of a smoke shop or vape store. When a lithium battery vents, an e-cig overheats, or a CBD or kratom product is blamed for harm, the retailer that sold it gets named in the claim. This coverage defends your shop and pays covered claims.
Product Liability for Smoke Shops & Vape Stores
A vape store sells products that hold energy and chemistry — lithium-ion batteries, pressurized cartridges, e-liquids, and a growing line of CBD, kratom, and nicotine items. When one of those products is blamed for an injury, the lawsuit doesn't stop at the manufacturer. The retailer who handed it to the customer is named right alongside them, and overseas manufacturers are often impossible to pursue — leaving you as the deep pocket in reach.
What It Covers
- Battery fires & explosions: A vape battery that vents in a pocket or overheats while charging — among the most common and severe vape claims
- Defective products: A device or mod that malfunctions and injures the user
- CBD, kratom & nicotine products: Claims that an ingestible or inhalable product caused harm or wasn't as labeled
- Failure-to-warn claims: Allegations you didn't adequately warn about a product's risks
Why the Retailer Gets Sued
Under product liability law, everyone in the distribution chain — manufacturer, distributor, and retailer — can be held liable for a defective product. When the manufacturer is an offshore company with no U.S. presence, the injured party's attorney comes after the seller they can actually reach: your shop.
Why a BOP Isn't Enough
Many smoke shops buy a generic business owner's policy and assume products are covered. Standard policies frequently sublimit or exclude vapor products, batteries, and CBD. We place coverage with carriers that specifically write the smoke and vape industry.
What's Covered
Frequently Asked Questions
Product liability law holds the entire distribution chain responsible, including the retailer. When the manufacturer is overseas or judgment-proof, the injured party pursues the seller they can reach — your shop. Product liability coverage funds your defense and any covered claim.
Often not. Many generic BOPs sublimit or outright exclude vapor products, lithium batteries, and CBD/hemp. You need a policy from a carrier that specifically underwrites the smoke and vape retail industry.