Insurance For Sex Toy Companies In Canada

Searching for insurance for sex toy companies in Canada? We’ll get you covered.

In the sex toy business, privacy matters. In the early days of mass-marketed sex toys, the true purpose of devices were often disguised as something innocuous. A rolling pin heat massager or the muscle relaxer more commonly known as Hitachi’s magic wand.1 Today’s sex toy companies know that their customers are more comfortable with adult novelty devices that are more obviously sex toys. Innovations in sex toy manufacturing means that a modern sex toy may have multiple features and be connected to the internet. Sex toys that connect to an iPhone or other internet device mean that privacy can be compromised.

The risky business of internet connected sex toys…

While sex toy companies may be keen to deliver new internet-connected devices to their customers, there are unique risks with sex toy devices that are part of the “Internet of Things”. According to a recent feature in Elle, “Analysts predict the IoT to grow exponentially in 2020, with a projected 20.4 billion products in use by next year, and smart sex toys are being hailed as a godsend for people in long distance relationships.”2


With opportunities for sex toy companies to provide innovative new products to consumers expanding so do the potential for complex new risks. For example, “Data collected by high-tech sex toys, meanwhile, could reveal a user’s sexual orientation or with whom they’re using the toy. In 2017, a company called Standard Innovations settled an almost $4 million class-action lawsuit after users claimed the company’s Bluetooth-enabled We-Vibe 4 Plus couples’ vibrator kept track of how much time they spent using the device. As part of the settlement, Standard Innovation agreed to stop recording users’ personal information and destroy any collected data.”3

A sex toy company in Canada found guilty in a $5 million lawsuit

A 2017 lawsuit that settled in Chicago federal court is of particular relevance to sex toy companies in Canada. Fortune notes, “the Canadian company called We-Vibe agreed to pay $5 million CDN (about $3.75 million) to resolve privacy claims regarding “adult sensual lifestyle products” that transmitted customer data.

The toys in question, which include the We-Vibe Classic and Rave by We-Vibe, are designed to be used by couples, allowing one partner to control the devices via Bluetooth and a smartphone app. Security researchers, however, discovered the company was also using the smart phone app to harvest data about how customers used the vibrators. The apps collected information such as what temperature and intensity settings the owners used, as well as how often they used the toys.”4

How to insure your sex toy company in Canada

The perfect fit. As a business owner in Canada you know that your insurance coverage needs to fit your business needs like a glove. This is why it’s important to work with a broker who understands the specific risks your sex toy business faces. From property to privacy, ALIGNED can help you get the coverage you need for your sex toy company.

Sources: 1,2,3 “Is your sex toy spying on you?; 4 “Sex toy maker pays $3.75 million to settle ‘smart’ vibrator lawsuit

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