Surplus and Surplus Lines Insurer Scottsdale Insurance Co. need not defend a charge brought against a vape shop by a customer who suffered severe burns after e-cigarette batteries exploded in his pocket, a federal court ruled on Tuesday. According to court documents in Scottsdale Insurance Co. against Aqueous Vapor LLC, Adam Williams Williams bought Williams e-cigarette batteries from an Aqueous Vapor Store in Independence, Missouri, and shortly after installing them when he returned home, they exploded in his pocket. Mr Williams suffered second- and third-degree burns, which required extensive medical care, including skin grafts, court documents say.
Mr. Williams sued Aqueous Vapor and the company sought coverage under its commercial insurance with Scottsdale.
Scottsdale, Arizona-based insurers denied coverage, citing the product-terminated business risk exclusion policy, among other arguments.
Judge Roseann A. Ketchmark of the U.S. District Court of the Western District of Missouri Western Division granted Scottsdale's request to dismiss the case.
"The exemption excludes coverage for bodily injury that occurs from the premises owned or leased by Aqueous Vapor and that derives from their product or work," the judge ruled. Catalog