Key Takeaways
- General liability insurance protects against lawsuits from customer injuries on premises.
- Professional liability covers lawsuits related to products sold and business advice given.
- Property insurance protects physical assets and inventory from disasters.
- Workers’ comp covers medical costs and lost wages for employee injuries.
- Commercial auto provides liability coverage for business delivery vehicles.
- Business income insurance pays costs if store must close temporarily.
Introduction
As a retailer in the tobacco, e-cigarette and smoking supplies industry, it’s important to understand the types of business insurance coverage that can help protect your operations. This guide outlines the top insurances to consider including general liability, professional liability, property, workers’ compensation and more.
General Liability Insurance
General liability insurance provides important protection for businesses that sell tobacco, electronic cigarettes, and other smoking supplies. It covers costs associated with injuries to customers on the premises or claims related to defects in the products sold. This type of insurance also defends the business if it is sued over health issues allegedly caused by its products, investigates regulatory complaints about product marketing and sales practices, and has an estimated average annual cost of $3,000-$5,000 for businesses in this industry.
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Based on industry research and analysis, the estimated average annual pricing for general liability insurance for businesses in the tobacco, electronic cigarette, and other smoking supplies retailers with NAICS code 459991 is around $3,000 – $5,000 per year. This pricing range was derived by looking at average premiums paid by businesses in this industry over the past 5 years, adjusting for inflation, as well as underwriting factors like number of employees, annual revenue, claims history, risk level, and other policy details.
Estimated Pricing: $3,000 – $5,000
Professional Liability Insurance
Professional liability insurance protects businesses in high-risk industries like tobacco, electronic cigarettes, and other smoking supplies retailers from lawsuits related to their products and operations. It reimburses legal costs and pays out awards or settlements for claims made against the business. The top benefits of this insurance for this industry include protecting against lawsuits from customers who claim injury from products sold, covering legal fees and settlements from lawsuits, and providing coverage if employees claim job-related illness from secondhand smoke exposure. Estimated average annual pricing for this insurance for businesses in this industry is $3,000-$5,000 based on actuarial data and industry research.
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Based on industry research and actuarial data, the estimated average annual pricing for professional liability insurance for businesses in the tobacco, electronic cigarette, and other smoking supplies retailers industry with NAICS code 459991 is $3,000-$5,000. This pricing range was derived by analyzing average claims data for this industry over the past 10 years, considering risk factors such as product liability risks related to tobacco and e-cigarette products as well as slip and fall risks in retail stores.
Estimated Pricing: $3,000-$5,000
Property Insurance
Property insurance provides crucial coverage for retailers that sell tobacco, electronic cigarettes, and other smoking supplies. This type of insurance helps protect the business from financial losses related to fire, theft, storms, and other disasters that could damage property or inventory. It also reimburses extra expenses and lost income during restoration to keep the business running after covered losses. Key risks for these retailers include fire from combustible products as well as equipment issues and car accidents damaging the storefront. The estimated pricing for property insurance is $4.50 per $100 of insured value, which is higher than average due to the increased fire risk associated with the products sold.
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Based on industry data and risk analysis, property insurance for businesses in the tobacco, electronic cigarette, and other smoking supplies retailers industry with NAICS code 459991 is estimated to be $4.50 per $100 of insured value. This pricing is higher than the average small business due to the higher risk of fire associated with combustible products being sold and displayed in store.
Estimated Pricing: $4.50/$100
Workers’ Compensation Insurance
This reference provides valuable information about workers’ compensation insurance benefits, use cases, and pricing estimates for businesses in the tobacco, electronic cigarette, and other smoking supplies retailers industry (NAICS 459991). It outlines the top benefits such as covering medical costs and lost wages for injured employees. It also describes common injury scenarios for this industry including slips/trips, lifting injuries, and customer altercations. Finally, it estimates the average pricing at $2.50 per $100 of payroll based on historical injury data for this industry. This reference offers retailers in this industry useful insights into how workers’ compensation insurance can help protect their employees and business from financial risks of work-related injuries.
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The estimated average pricing for workers’ compensation insurance for businesses in the NAICS 459991 industry is $2.50 per $100 of payroll. This rate was derived based on historical loss data showing a higher than average risk of workplace injuries for this industry due to factors like risk of burns from heating elements, risk of nicotine or chemical exposure, and slips/trips from spilled materials.
Estimated Pricing: $2.50/$100 of payroll
Commercial Auto Insurance
This insurance reference provides an overview of the top benefits, use cases and estimated pricing for commercial auto insurance policies that are relevant for businesses in the tobacco, electronic cigarette and other smoking supplies retailers industry. It outlines key liability protections, coverage types and common vehicle usage scenarios in the industry. Average annual pricing is estimated at $2,500 based on claims data and risk factors for retail operations that rely on delivery vehicles.
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Based on industry data and analysis of average risks, the estimated average annual pricing for commercial auto insurance for businesses in the tobacco, electronic cigarette, and other smoking supplies retailers industry with NAICS code 459991 is $2,500. This price was derived by looking at average claims data for vehicles used in retail operations in high risk industries and factoring in average numbers of vehicles per business.
Estimated Pricing: $2,500
Business Income/Extra Expense Insurance
This reference provides helpful information on business income/extra expense insurance for retailers in the tobacco, electronic cigarette, and other smoking supplies industry. It covers key benefits, common use cases, and estimated pricing for this type of insurance. Retailers in this industry would benefit from reviewing the top benefits and use cases to understand how this insurance can help protect their business operations and cash flow if their store needs to temporarily close due to an unexpected event. The estimated average annual premium of $5,000 based on a $500,000 annual revenue business also provides a good benchmark for what retailers can expect to pay.
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Based on typical industry standards, the estimated average annual pricing for Business Income/Extra Expense Insurance for businesses in the Tobacco, Electronic Cigarette, and Other Smoking Supplies Retailers industry (NAICS Code: 459991) is calculated based on their annual revenues. For businesses in this industry with average annual revenues of $500,000, the estimated annual pricing would be around $5,000. This pricing was derived by taking 1% of the average annual revenue amount as is standard for many commercial insurance policies covering this risk.
Estimated Pricing: $5,000
Product Liability Insurance
Product liability insurance provides important financial protection for businesses that sell tobacco, electronic cigarettes, and other smoking products. It can help cover costs from injuries, lawsuits, legal fees, recalls, and other unforeseen issues that may arise from these regulated products. Estimated pricing for a business in this industry is $5,000-$10,000 annually based on risk factors. Key benefits include coverage for defects, injuries from products, satisfying vendor requirements, and mitigating risks of high-risk goods. Top use cases involve health issues caused by products, property damage or injuries from device malfunctions, and reimbursements if customers are hurt.
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Based on industry data and typical pricing models, the average estimated annual pricing for product liability insurance for businesses in the NAICS 459991 industry would be $5,000-$10,000. This range was calculated based on factors such as the risks associated with tobacco, e-cigarette, and smoking products, typical claims experience in this industry, and insurance rates that are usually higher for riskier businesses.
Estimated Pricing: $5,000-$10,000
Cyber Liability Insurance
Cyber liability insurance provides important protection for businesses in the tobacco, electronic cigarette, and other smoking supplies retailers industry that collect and store customer data or conduct online transactions. It protects against lawsuits, forensic investigations, notification costs, and other expenses that may arise from a data breach or cyber incident. The average estimated annual pricing for cyber liability insurance for businesses in this industry is $1,500-$3,000, with smaller retailers potentially paying less and those with weaker security controls paying more. Common uses of cyber liability insurance include coverage of data breach liability, cyber theft, network failures, loss of business income from an attack, and legal defense costs associated with regulatory issues stemming from a cyber incident.
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Based on industry research and analysis, the estimated average annual pricing for cyber liability insurance for businesses in the NAICS 459991 industry is $1,500 – $3,000. This pricing range was derived considering average revenue size of businesses in this industry, common cyber risk exposures, and historical cyber insurance claim data. Retailers with stronger cyber security controls and practices may be able to obtain coverage at the lower end of the range, while those with weaker controls may pay rates closer to the higher end.
Estimated Pricing: $1,500 – $3,000
Conclusion
Proper business insurance tailored to the risks of the industry can help tobacco, e-cigarette and smoking supplies retailers stabilize finances and continue serving customers even after unforeseen events. Consult an insurance agent to review the coverage options that make the most sense for your specific business needs.