44
TOBACCO BUSINESS
MARCH/APRIL 2014
electric
ALLEY
or who are not buying product that is
covered by product liability insurance
are essentially playing Russian roulette
without it.
“Potentially, a retailer could lose
everything because of these lawsuits,” says
Bill Seide, owner of the insurance agency
William R. Seide Agency in Pompton
Plains, New Jersey. “A retailer’s standard
liability insurance will not cover it—they
need separate product liability insurance.”
The product liability policy that
Seide’s agency provides to cover such
products specifically states that it is “a
policy designed for those that sell e-cigs,
vaporizers, e-juice and accessories—it’s an
exclusive program just for that,”according
to him.
Interestingly, tobacco shops and
outlets that sell regular cigarettes,
cigars, and a variety of tobacco products
along with e-cigs can get the added
protection cheaper than a pure vape
shop, Seide relays. “Tobacco shops that
are established and have been in business
for a number of years are less of a risk
than the vape shops that are cropping up
everywhere now,” he offers. Seide says he
has seen “regular tobacco shops” purchase
product liability for “as low as $1,800” per
year.
For vape shops it would be “a bit more,”
and for wholesalers and manufacturers
product liability policies “start in the
range of $5,000,” according to Seide.
Lewis concurs with that wholesale
figure, relaying that Vapor Central’s $2
million product liability policy (from
Scottsdale Insurance Company) costs the
company about $5,600 a year.
TB
Safe Battery 101
Because it is the rechargeable lithium battery (Li-ion and LiMN) that is at the
forefront of these e-cig mechanical safety issues, retailers should also promote
safe battery practices to their customers to avoid potential lawsuits.
Some of these tips, as highlighted on several industry websites such as
guidetovaping.com, include:
• Charge batteries on a fireproof or flame-retardant surface such as concrete,
natural stone, or tile and use only the corresponding charger that is set to the
correct settings.
• Store e-cigarette batteries in a protective, non-conductive case.
• Do not disassemble or tamper with e-cig batteries in any way.
• Discontinue using if there is any sign of damage to the battery casing or
wrapper, including dents, bulges, rips, tears and scarring.
• Take care not to unintentionally short the batteries by exposing them to metal
objects, liquids, or by submerging them fully into any conductive substance.
• Keep batteries away from fire or extreme temperatures as they could explode
and/or vent.
• Avoid leaving charging batteries unattended.
“Potentially, a retailer could
lose everything because of these
lawsuits. A retailer’s standard
liability insurance will not cover
it—they need separate product
liability insurance.”
