Cigar Store Business Insurance
Owning a cigar shop is carries many risks not unlike other retail shops. There are some key differences namely the rules and regulations cigar shop owners must follow regarding tobacco laws.
Why Cigar Shops Need Insurance
Many cigar shops are more than just a retail store; they are a place where people frequently hang around to enjoy social interaction over cigars or cigarettes. Any time customers spend an excessive amount of time in your retail space your business insurance liability exposure increases. Mostly because they are more likely to get hurt or suffer property damage while in your store.
Additionally, many tobacco stores carry flammables, such as butane lighter refills, and some still permit smoking in their retail spaces. This increases the risk of fire damage compared to other retail establishments.
We all know that tobacco products can be hazardous to 'users' health, which means as a store owner, you run the chance of being named in a liability lawsuit.
Types of Insurance Coverages Cigar Shops Need
A single liability lawsuit can lead to financial hardship or even bankruptcy. Liability insurance helps protect you from these risks by providing coverage for court costs, legal defense fees, and monetary damages. There are several liability insurance coverage types available to you as a cigar shop owner. When shopping for liability insurance be sure you include the following:
Premises liability insurance: Included in your general liability coverage, this coverage protects your business against general lawsuits. An example would be if a customer is injured or suffers personal property damage while in your store due to your negligence.
Product liability insurance: If a customer becomes ill or is injured by a product sold in your shop, you will need this coverage to protect your store's bottom line. Keep in mind because you are dealing with goods known to cause illness, this coverage is essential but may also be very expensive.
Fire legal liability: Most cigar stores operate out of leased spaces. If your business rents retail space and you allow smoking in your store or carry an abundant supply of flammable items. It's possible your landlord may require you to carry fire legal liability insurance. This type of coverage protects the 'landlord's property if it is damaged by a fire that starts in your store.
Of course, aside from liability insurance, you want to protect your inventory, equipment, and the building if you own it. It would be best if you considered the following types of insurance:
Building insurance: If you own the building your cigar shop occupies, you will be required by your financial institution to carry building insurance. This pays your business if a covered event causes damage to the structure of your building.
Contents insurance: This provides coverage for everything you keep within your cigar stores premises like the inventory, shelving, computers and décor. Keeping a current spreadsheet of stock, equipment and other property will help ensure that you have enough coverage for all your business property.
In addition to property and liability insurance for your cigar shop you may want to consider these additional coverages:
Business Income Insurance
Workers Compensation Insurance
Employee Practices Liability Insurance
Let us simplify your search for business insurance! You can get started by requesting a custom business quote now or by calling us at 800-437-3316. We insure cigar stores in all states except for CA!
