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Cigar Insurance USA
Cigar Insurance USA specializes in insurance programs for cigar lounges, tobacconists, cigar manufacturers, distributors, and other cigar industry businesses across the United States.

Introduction

Cigar shops and tobacconists require specialized insurance because many standard insurance companies restrict businesses that sell tobacco products. As a result, cigar retailers often need insurance programs designed specifically for the cigar industry.

Cigar Insurance USA specializes in insurance coverage for cigar shops, tobacconists, and other cigar industry businesses across the United States. This guide explains the types of insurance cigar retailers typically need, common coverage limitations, and important considerations when insuring a cigar shop.

Many cigar shop owners ask practical questions such as where they can obtain insurance for a cigar shop , what types of insurance a cigar shop needs , and how much cigar shop insurance typically costs . The sections below provide a detailed overview of insurance considerations for cigar retailers.

What Is Cigar Shop and Tobacconist Insurance?

Cigar shop insurance refers to a combination of business insurance coverages designed to protect cigar retailers and tobacconists from financial losses caused by accidents, property damage, lawsuits, and other risks.

Because cigar shops sell tobacco products and often maintain significant inventory inside humidors or display cases, their insurance needs can differ from many other retail stores. Insurance programs designed for cigar retailers typically combine several policies that work together to address these exposures.

Why Some Insurance Companies Decline Cigar Shops

Some insurance companies hesitate to insure cigar shops because of underwriting guidelines related to tobacco sales. Businesses that sell tobacco products may be viewed as having increased liability exposure, which leads some insurers to decline these risks.

Because of these restrictions, cigar shop owners sometimes discover that traditional insurance carriers are unwilling to provide coverage. Specialty insurance programs designed specifically for cigar retailers and tobacconists are often necessary to properly insure these businesses.

Types of Insurance Cigar Shops Typically Need

Cigar shops typically require a combination of liability and property insurance to protect the business, employees, and customers. The specific coverages needed can vary depending on the size of the shop, the value of inventory, and whether the shop includes a smoking lounge area.

Business owners often ask what insurance a cigar shop or tobacconist needs  when opening or expanding a retail cigar business.

General Liability Insurance

General liability insurance helps protect a cigar shop if a customer is injured on the premises or if the business is accused of causing property damage or bodily injury.

Commercial Property Insurance

Commercial property insurance helps cover damage to the building, furniture, humidors, display cases, and cigar inventory if a loss occurs due to fire, storm damage, or vandalism.

Product Liability Insurance

Because cigar shops sell tobacco products manufactured by third parties, product liability insurance helps protect the retailer if a product sold by the shop allegedly causes injury or harm.

Business Income Insurance

Business income insurance helps replace lost income if the cigar shop must temporarily close due to a covered property loss.

Workers’ Compensation Insurance

Workers’ compensation insurance is typically required if the cigar shop has employees and helps cover medical expenses and lost wages if an employee is injured while working.

Theft and Inventory Coverage for Cigars

Cigar shops often maintain large amounts of premium cigar inventory, which can represent a significant financial investment. Many commercial property insurance policies contain special theft limitations for tobacco products, which may restrict coverage if cigars are stolen during a burglary.

Because cigars are small, valuable, and easily resold, insurers sometimes apply sub-limits to tobacco products within a policy. This means a theft loss could exceed the policy’s coverage limit if the inventory value is not properly insured.

You can learn more about this issue in our article Are Cigars Covered for Theft Under a Standard Insurance Policy?

Because cigar inventory in a humidor can represent a significant investment, cigar shop owners should review their insurance policies carefully and ensure that appropriate coverage limits are in place.

Smoking Lounges in Cigar Shops

Many cigar shops choose to add a smoking lounge or membership lounge to their retail space. While this can enhance the customer experience, it can also change the insurance considerations for the business.

Insurance companies may treat cigar lounges differently from retail cigar shops due to indoor smoking exposure and occupancy considerations.

If a cigar shop plans to allow indoor smoking, it is important to understand how this may affect insurance availability and underwriting guidelines. Learn more in our article Can a Cigar Shop or Tobacconist Have a Smoking Lounge?

How Much Cigar Shop Insurance Costs

The cost of cigar shop insurance varies depending on several factors, including the size of the store, the value of cigar inventory, the number of employees, and the location of the business.

Insurance companies typically evaluate several factors when determining pricing, including annual revenue, inventory value, claims history, and building characteristics.

Cigar shop owners frequently ask how much cigar shop or tobacconist insurance costs when evaluating coverage options.

Because cigar retailers have specialized exposures, insurance pricing is often determined by insurers that understand cigar businesses and their operations.

Example Insurance Claims for Cigar Shops

Fire Damage

A fire inside a cigar shop damaged display cases, furniture, and a large portion of the cigar inventory. Property insurance helped cover repairs and replacement of damaged inventory.

Slip and Fall

A customer slipped on a wet floor inside the shop and suffered an injury. General liability insurance helped cover legal defense costs and settlement expenses.

Burglary

A burglary resulted in several boxes of premium cigars being stolen from the humidor. Coverage for cigar inventory depends on the policy’s theft limits and security requirements.

Why Work With a Cigar Industry Insurance Specialist

Because cigar shops have unique exposures that differ from many other retail businesses, working with an insurance provider that understands the cigar industry can be extremely important.

Cigar retailers face issues such as tobacco product liability, high-value cigar inventory, and theft exposure related to premium cigars. Insurance providers that understand the cigar industry are often better equipped to address these issues within an insurance program.

Cigar Insurance USA focuses specifically on insurance programs for cigar shops, tobacconists, cigar lounges, cigar manufacturers, and other cigar industry businesses across the United States.

Other Segments of the Cigar Industry

While this guide focuses on insurance for cigar lounges, businesses involved in cigar production or distribution may need different types of coverage. Learn more in our Cigar Lounge Insurance Guide, Mobile Cigar Trailer Insurance Guide, Cigar Manufacturer Insurance Guide, and our Cigar Distributor / Wholesaler Insurance Guide.

Frequently Asked Questions

Can cigar shops get insurance?

Yes. While some insurance companies restrict businesses that sell tobacco products, specialty insurance programs exist for cigar shops and tobacconists. Learn more in Where Can I Get Insurance for a Cigar Shop?

Do cigar shops need product liability insurance?

Product liability insurance is commonly recommended for cigar retailers because they sell products manufactured by third parties.

Is insurance required to open a cigar shop?

Many landlords require general liability insurance before signing a lease, and workers’ compensation insurance is typically required if employees are hired.

Does insurance cover cigar inventory stored in a humidor?

Commercial property insurance can cover cigar inventory stored in humidors if the policy includes appropriate limits for stock and inventory.

Related Articles About Cigar Shop Insurance

• Where Can I Get Insurance for a Cigar Shop? 
• What Insurance Does a Cigar Shop and Tobacconist Need? 
• How Much Does Cigar Shop and Tobacconist Insurance Cost? 
• Are Cigars Covered for Theft Under a Standard Insurance Policy? 
• Can a Cigar Shop or Tobacconist Have a Smoking Lounge?