Tobacco is as enticing as liquor. Some even claim that smoking soothes their nerves. Operating a tobacco shop comes with unique risks, making it essential for business owners to have comprehensive insurance coverage. For one, this retail business is highly susceptible to fires because stocks can easily catch fire.
Tobacco shop insurance protects against potential liabilities, accidents, and property damage during business operations. This article will explore different types of insurance policies available for tobacco shops, coverage limits, and more. We will also highlight some of the best tobacco shop insurance companies.
CoverWallet | NEXT (Best) | Thimble | Hiscox | The Hartford | |
---|---|---|---|---|---|
Per occurrence limit | $1,000,000 | $1,000,000 | $1,000,000/$2,000,000 | $300,000/$1,000,000 | $1,000,000/$2,000,000 |
Aggregate limit | $2,000,000 | $1,000,000/$2,000,000 | $1,000,000/$2,000,000 | $300,000/$2,000,000 | $1,000,000/$2,000,000 |
Products and completed operations aggregate limit | $2,000,000 | $1,000,000 | $1,000,000 | $1,000,000 | $1,000,000 |
Advertising injury coverage aggregate limit | $1,000,000 | $1,000,000 | $1,000,000 | $1,000,000 | $1,000,000 |
Tenant’s legal liability coverage limit | $100,000 | $100,000 | $5,000 | $100,000 | $1,000,000 |
Waiver of subrogation included? | Yes | No | Included | Can be included | No |
Hired/non-owned auto liability coverage included? | Yes | No | Excluded | Can be included | Can be included |
Equipment breakdown floater included? | No | Yes | Yes | Can be included | Can be included |
General liability insurance is a crucial coverage option for tobacco shops. This type of tobacco store insurance,protects against claims made by third parties for bodily injury, property damage, or personal injury arising from the store's operations.
When it comes to tobacco store insurance, the coverage limits usually range from $1 million to $2 million. These limits represent the maximum amount the insurance company will pay for covered claims.
Customer injuries–General liability insurance can provide financial protection if a customer sustains an injury while using a product you sell or due to negligence on your premises
Property damage–If your tobacco shop causes damage to third-party property, such as accidentally knocking over a display in a neighboring store, general liability insurance can help cover the costs
Liquor liability coverage–If your tobacco shop also sells alcoholic beverages, this add-on to the general liability coverage of your smoke shop insurance package can protect against claims related to injuries or accidents caused by customers who consumed alcohol on your premises.
Cyber liability insurance–With the increasing risk of cyber-attacks and data breaches, this add-on can cover potential damages and liabilities
Product liability insurance vital coverage option included in tobacconist insurance programs. It provides essential protection against claims arising from harm or injury caused by the products you offer to customers.
Coverage limits for product liability insurance can range from $1 million to $5 million.
Defective tobacco products–If a customer suffers harm or injury due to a defect in a tobacco product you sell, product liability insurance can help cover the resulting claims
Allergic reactions or health issues–Product liability insurance can provide financial protection if a customer experiences an allergic reaction or health problems attributed to a tobacco product purchased from your shop
When it comes to this type of tobacco store insurance, there may be certain restrictions on the types of tobacco products covered. The coverage and restrictions can vary depending on the insurance provider and policy terms. Reviewing the policy details and consulting with your insurance agent to understand the restrictions that apply to your tobacco store is essential.
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CoverWallet | NEXT (Best) | Thimble | The Hartford | Hiscox | |
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Building coverage limit (minimum) | $50,000 | $320,000 | $25,000/$500,000 | $75,000 | $25,000 |
Contents coverage limit (minimum) | $50,000 | $35,000 | $25,000/$500,000 | $75,000 | $15,000 |
Outdoor signs | Excluded | $2,500 | Excluded | Excluded | Included |
Accounts receivable | Excluded | Excluded | $5,000/$10,000 | Excluded | Included |
Money and securities | Excluded | $2,500 | $1,000 | Excluded | Included |
Lock and keys | Excluded | $2,500 | Excluded | Excluded | Included |
Business interruption floater | Excluded | Included | Included | Excluded | Included |
Equipment breakdown floater | Excluded | Included | Excluded | Excluded | Included |
Inland marine insurance floater | Excluded | Excluded | $10,000 | Excluded | Excluded |
Employee dishonesty floater | Excluded | $5,000 | $2,500 | Excluded | Excluded |
Commercial property insurance is vital component of your tobacconist insurance. It provides crucial protection for your tobacco shop’s physical premises and assets, safeguarding against various perils such as fire, theft, vandalism, and other covered events.
The coverage limits for commercial property insurance depend on the value of the property and the specific policy.
Business interruption coverage–This add-on to the commercial property coverage of your smoke shop insurance package can compensate for lost income and ongoing expenses if your tobacco shop is temporarily unable to operate due to a covered loss
Equipment breakdown coverage–If your tobacco shop relies on specialized equipment, such as humidors or cooling systems, this add-on can cover the costs of repairing or replacing damaged equipment
It depends on the specific policy and coverage options. Some commercial property insurance policies may include coverage for damages caused by natural disasters, such as hurricanes, earthquakes, or floods. However, reviewing the policy details and discussing specific coverage needs with your insurance provider is important.
CoverWallet | NEXT (Best) | Thimble | Hiscox | |
---|---|---|---|---|
General liability aggregate limit | $2,000,000 | $1,000,000/$2,000,000 | $1,000,000/$2,000,000 | $300,000/$2,000,000 |
Commercial property coverage limit | $50,000 | $320,000 | $25,000/$500,000 | $75,000 |
Optional policies can be added? | Yes | Yes | Yes | Yes |
Name additional insureds for free? | Yes | Yes | Yes | Yes |
BOP discount? | Yes | Yes | Yes | Yes |
A business owner's policy (BOP) is an inclusion in tobacconist insurance that combines general liability and commercial property insurance. It provides comprehensive protection for tobacco shops, addressing liability claims and property-related risks.
The coverage limits and specifics of a business owner's policy for tobacconists may vary depending on the insurance provider and the specific requirements of your tobacco shop.
Slip and fall accidents–If a customer slips and falls in your tobacco shop, resulting in injury, the general liability portion of the BOP can cover medical expenses and potential legal costs
Property damage–If your tobacco shop experiences property damage due to covered perils, such as a fire or vandalism, the commercial property portion of the BOP can help cover repair or replacement costs
Data breach coverage–With the increasing risk of data breaches and cyber attacks, this add-on can cover potential damages and liabilities
Employee dishonesty coverage–This add-on protects against losses caused by dishonest acts committed by employees, such as theft or fraud
A business owner's policy is often a suitable insurance solution for small tobacco shops. It combines essential coverages into a single policy, offering convenience and comprehensive protection.
NEXT | Thimble | Hiscox | The Hartford | |
---|---|---|---|---|
Aggregate limit | $3,000/$10,000 | $2,500/$5,000 | $15,000/$25,000 | $5,000-$10,000 |
Covers hired and borrowed equipment? | $3,000/$10,000 | $2,500/$5,000 | No | Yes |
Miscellaneous equipment also covered? | $5,000/$10,000 | No | Yes | Yes |
Offered as an endorsement to general liability insurance? | Yes | Yes | Yes | Yes |
Deductible | $500 | $500 | $0 | $0 |
Tools and equipment insurance is a crucial coverage option for tobacco shop owners to protect their valuable tools, machinery, and equipment. This insurance provides financial protection in case of damage, loss, or theft of these essential business assets.
The coverage limits for the tools and equipment coverage of your tobacco store insurance package will be determined based on the value of the insured items and the specific policy you choose.
Accidental damage–If your tools or equipment are accidentally damaged while being used or transported, this insurance can cover the repair or replacement costs
Theft–In the unfortunate event of theft or burglary, tools and equipment insurance can provide financial protection to replace the stolen items
Inland marine coverage–This add-on extends the coverage for tools and equipment beyond the premises of the tobacco shop, such as when they are in transit or temporarily located off-site
Equipment breakdown coverage–If your tobacco shop relies on specialized equipment, such as cash registers or ventilation systems, this add-on can cover repairing or replacing damaged equipment due to mechanical breakdown
When determining the coverage limits, consider the total value of your tools, machinery, and equipment. Evaluate their replacement costs and the potential risks they face in your tobacco shop. It's essential to ensure that the coverage limits are sufficient to cover the full value of your assets and any potential expenses associated with repair or replacement.
Commercial auto insurance is a vital coverage option for tobacco shops that utilize company-owned vehicles for business operations. This insurance protects against liability and physical damage resulting from accidents involving these vehicles.
When it comes to commercial auto insurance for tobacco shops, the coverage limits can vary depending on the insurance provider and the requirements of your business. Working with your insurance company to determine the appropriate coverage limits for your tobacco shop's vehicles is crucial.
Auto liability coverage–Covers the medical expenses of victims if your tobacco shop’s commercial auto caused a road accident
Collision coverage–Helps cover the expenses associated with repairing your company vehicles in the event of a collision with another vehicle or object. It ensures that you can get your vehicles back on the road quickly
Comprehensive coverage–Protects against incidents that don't involve collisions, such as theft, vandalism, or damage caused by natural disasters
If you use your vehicle for occasional business-related tasks, your personal auto insurance policy may provide some coverage. However, it's crucial to inform your insurance provider about the business use of your vehicle, as there may be limitations or exclusions in personal auto policies regarding commercial activities. Consider discussing your specific situation with an insurance company to determine if additional commercial auto insurance is necessary to protect your business adequately.
Workers compensation insurance is a legal requirement for tobacco shops with employees. It provides coverage for medical expenses, lost wages, and other benefits in the event of work-related injuries or illnesses.
The workers compensation policy included in your smoke shop insurance package has no set coverage limit. Payouts depends on the workers comp law of the states where you’re doing business.
Work-related illnesses due to occupational factors, such as exposure to hazardous chemicals or substances, workers' compensation insurance can cover medical costs and provide necessary benefits
Repetitive motion injuries, such as stocking shelves or operating machinery, may develop repetitive motion injuries. Workers' compensation insurance can provide coverage for medical treatment and rehabilitation
Employer's liability coverage–Grants protection against legal costs if an employee decides to sue for negligence after he or she sustained a work-related injury or disease
Cost per Month | Cost per Year | Deductible | |
---|---|---|---|
General liability insurance | $55 | $660 | $0-$500 |
Commercial property insurance | $65 | $780 | $500-$1,000 |
Business owner’s policy | $120 | $1,440 | $1,000-$2,000 |
Tools and equipment insurance | $61 | $732 | $1,000-$2,000 |
Commercial auto insurance | $73 | $876 | $1,500 |
Workers' compensation insurance | $125 | $1,500 | $2,000-$5,000 |
The average tobacco shop insurance cost is $55 per month or $660 per year for a $1 million general liability policy. Premiums can vary depending on several factors. Insurance providers consider factors such as the shop's location, the value of the property and assets, the coverage limits and deductibles chosen, the number of employees, and the shop's claims history. Here’s a table showing the cost of a $1 million general liability insurance from companies we recommend:
Cost per Month | Cost per Year | Best For | |
---|---|---|---|
NEXT | $30 | $360 | Best overall; Fastest general liability insurance for tobacco shops |
CoverWallet | $35 | $420 | Comparing tobacco shop insurance quotes online |
The Hartford | $39 | $468 | Workers compensation insurance for tobacco shops |
Tivly | $43 | $516 | Comparing tobacco shop insurance quotes over the phone |
Thimble | $46 | $552 | On-demand coverage coverage options for tobacco shops |
Hiscox | $49 | $588 | Customized coverage options for tobacco shops |
Get all the best quotes from leading providers in a click of a button!
When insuring your tobacco shop, choosing the right insurance company is essential. Here are some reputable smoke shop insurance companies to consider working with. Read some of the reviews below to know their pros, cons, and average rate for a $1 million general liability insurance.
One of the quickest insurance companies to offer online quotes
Provides free, round-the-clock online access to live insurance certificates
Tobacco shop owners can customize their policies with NEXT Insurance to ensure they have the specific coverage to protect their business
Couldn’t find any
NEXT is a leading insurance company specializing in meeting the unique needs of tobacco shops. Recognizing the distinct challenges faced by this industry, NEXT Insurance offers comprehensive coverage options specifically tailored to protect your tobacco shop and its assets.
Best for: Best overall; Fastest general liability insurance for tobacco shops
Average cost: $30 per month
Our rating: 10/10
User-friendly online platform for managing policies
Provides access to various insurance carriers
Their dedicated team of insurance professionals is readily available to answer questions, provide guidance, and assist tobacco store owners throughout the insurance process
Offers comprehensive insurance coverage for tobacco stores, including protection against property damage, inventory loss, liability claims, and other industry-specific risks
Not an insurance company but an insurance broker
CoverWallet is a highly regarded insurance provider that has earned a strong reputation for its specialized solutions catering to tobacco stores insurance. As a trusted company, they have become synonymous with expertise in addressing the unique risks and challenges faced by businesses in the tobacco industry.
Best for: Comparing tobacco shop insurance quotes online
Average cost: $35 per month
Our rating: 10/10
Their knowledge of small businesses' unique risks and challenges enables them to offer specialized insurance solutions
Offers customizable insurance solutions, allowing tobacco shop owners to tailor their coverage to their specific needs
Committed to providing excellent customer service
It may have a longer application process than other providers
The Hartford is a trusted insurance company with extensive experience in providing coverage for small businesses, including tobacco shops. Their customizable insurance solutions, commitment to customer service, and additional resources for risk management make them a reliable choice for tobacco shop owners seeking comprehensive coverage and support.
Best for: Workers compensation insurance for tobacco shops
Average cost: $39 per month
Our rating: 10/10
Specializes in insurance solutions for retail businesse
Flexible coverage options to meet your specific needs
Provides comprehensive coverage options designed to meet the specific needs of tobacconist
You need to call to get a quote
Tivly is an insurance provider specializing in comprehensive coverage options for tobacconist insurance. With their expertise in catering to the unique needs of retail businesses, including tobacco shops, Tivly ensures that your business is well-protected against potential risks and liabilities. Call now to compare quotes over the phone.
Best for: Comparing tobacco shop insurance quotes over the phone
Average cost: $43 per month
Our rating: 9/10
Flexible coverage options with hourly, daily, or monthly policies
Simplifies the insurance process with a quick and straightforward application process
Online platforms and mobile app provide convenient policy management tools
You can’t reach customer service by calling
Thimble is an innovative insurance provider that has revolutionized how small businesses, including tobacco shops, access and manage their insurance coverage. With a focus on flexibility and convenience, Thimble offers on-demand policies that can be tailored to fit the specific needs of your tobacco shop.
Best for: On-demand coverage coverage options for tobacco shops
Average cost: $46 per month
Our rating: 8/10
Customizable policies to match specific needs
Excellent customer service and support
Risk management resources to minimize potential risks
Provides a high level of customer service and claims support.
Policy complexity may require careful review
Hiscox is a renowned insurance company that offers comprehensive coverage for small businesses, including tobacco shops. They provide specialized insurance solutions tailored to the unique risks faced by your business. With their expertise and tailored solutions, Hiscox aims to provide comprehensive insurance protection for businesses in various industries.
Best for: Customized coverage options for tobacco shops
Average cost: $49 per month
Our rating: 9/10
Use anyone except Employers. Period. They are non-transparent and shameful. After I complained long enough to warrant a call from a supervisor, the supervisor called back from a PRIVATE NUMBER (no caller ID), left a message that they are not reversing their decision (without any communication with me), and failed to leave a phone number for me to call back. She was hiding! They also fact find via email and phone calls, which is terrific for speed and communication. However, after setting a precedence of email or phone calls, they send time sensitive information via email, without any heads up... they are hoping you miss it and forfeit via expiration. Evil policies. Go elsewhere.
This place is an absolute joke of a company and should be ashamed of the way they conduct business. I was hurt on the job at the end of July and it took them just shy of 7 weeks to issue out a paycheck to me. Yes the amount was back dated but still. Not many have the luxury of not receiving a paycheck for almost 2 months. To top it all off, the original adjuster marked me down for the wrong state which caused a problem from the get go, I've had 3 different adjusters now since each one can't seem to figure out the simplicity of my claim. All my paperwork which includes, my job, house, and drs visits all are from the same state and city but yet some how I have been filed under a completely different state 1500 miles away. They do not answer your phone calls or emails no matter how many you leave. I've had to escalate my frustrations to the supervisors of each of these individuals in order to even get some kind of response. I've had more communication and information given to me about my claim from the customer service representatives then the actual adjusters.......... please tell me how that works?! A serious overhaul needs to happen here in order to serve your clients the way they deserve to be taken care of. 10/10 do not recommend this company to a single soul on earth
I have never had the displeasure of working with a more incompetent and disrespectful person in my life. I’m an injured worker and the adjuster that was assigned to my case was named Carrie Furgeson. In the past 6 weeks that I’ve been injured and out of work I have only been able to get ahold of her twice, not for lack of trying. I have left countless voicemails, countless emails, and she ignores them all. When I am finally able to get ahold of her I’m greeted with terrible customer service. She is rude, she talks over me and I’m hardly able to get a word in edgewise. She spelled my name wrong on my documents even after I spelled it for her properly countless times, this caused a whole new issue with my bank. I have bill collectors from the hospital calling me demanding payment and Carrie Furgeson won’t do a single thing to help, or to get them paid. All of my documentation is in Colorado, my job is in Colorado, my address is in Colorado, all my Dr offices and appointments have been in Colorado and Carrie still managed to hold my claim because she wasn’t sure what state she needed to file it under. It’s been 6 weeks since my Injury and my company still hasn’t received the wage paperwork to fill out so they can get me my correct wages. When she’s not ignoring me she’s answering my questions with “I don’t know” well I don’t know how she got this job, because apparently she doesn’t know anything about it. She is a disgusting morose individual inside and out and I genuinely wish her the worst in all of her future endeavors. I highly recommend you don’t use this company. Please if you are a business owner and your looking into this company please don’t use them. I’m sure they have the cheapest payment and that’s why companies use them in the first place, but you will be doing your employees a grave disservice by forcing them to venture into this absolute dumpster fire of a company. I would rate 0/5 if possible but 1 was the lowest I was allowed.
Their general liability insurance purchase process is simply the best online experience I've ever had in my life!
As long as they cover your line of business, you're literally covered! best rates, best coverage, best online experience, best professionals, can't be happier that I chose them!