Unbelievable! Vape shop owner gets sued for exploding battery


#1

What are you doing to protect your shop from litigation? Are you insured? Have you researched what it takes to fight a battery explosion claim like this?

Our partner at Calco Insurance, Sarkis, has extensive experience helping out vape shops deal with lawsuits such as this one.


#2

Make sure you have created a proper corporation (Limit personal liability).
Keep your insurance up to date and make sure you are covered properly.
Train your employees to warn customers of the dangers of batteries.(We pass out a warning card to each new customer).
Make sure your surveillance cameras are recording video and audio and the retention is at least several months.

If your insurance company does not answer their phones (Much like Calco), find another one. I wasted 20 emails and 20 phone calls to them before I opened my shop and I could never get in touch with the person that worked with Vapor Shops (Jason I believe). If you can’t reach them to become a client, think what it would be like if you needed them to handle a claim.

Since the battery vendors are willing to send free plastic battery cases with each order, make sure every customer has one and that they understand why!

In the end, when litigation begins, everyone from the manufacturer on up will be on the list. Cover your ■■■ at all costs.


#3

Thanks so much for the reply and the feedback. Great advice, especially about the video cameras.

I have not heard that about Calco…

What insurance company do you currently use?
What kind of security cameras do you have?


#4

As far as insurance goes, we use two different companies. Bass handles most of it. We use local brokers that can steer us in the right direction and constantly follow up.

We only use Axis brand cameras. They are a bit pricey but can record audio and video. They are powered by a network switch. The backend of it is a Mac Mini that records 24/7. All of which is backed up by a battery that will run them for an hour in case of a power outage.

I have used the system many times to find out why a drawer was short or over, when a parent calls or comes in and says we sold their child vaping products (we never do), theft, and in the rare case that someone tries to get into our back room. Information is power. I would feel blind without them. Cameras also keep the staff honest.


#5

Are you able to live feed into the shop whenever?


#6

Yes, I can. From pretty much any device.


#7

HAHA. This is were the industry gets really really stupid. Instead of encasing a battery into a shell, we use a thin PVC shrink wrap that the customer can easily rip, we continue to push this “battery safety” rather than using engineering to solve a problem. That both would reduce liability and increase trust. Then we wonder why numbers are down…

Customer burnout. People don’t want to have to learn how to vape and then how to maintain a freaking battery from injuring you or burning down your home in the middle of the night. Doesn’t matter if the fear is irrational its what drives numbers. Consumers get tired of maintaining so many objects and feel guilty when they forget. Its just a matter of time before they rather smoke.