Does Insurer have a Duty to Defend Vape Store in Personal Injury Suit?

The U.S. District Court for the Western District of Missouri has decided that an excess and surplus lines insurer does not have to defend a suit brought against a vape store by a customer who suffered severe burns after e-cigarette batteries exploded in his pocket. The case is Scottsdale Ins. Co. v. Vapor, No. 4:20-00328-CV-RK, 2021 U.S. Dist. LEXIS 5296 (W.D. Mo. Jan. 12, 2021).

Scottsdale Insurance Company issued an insurance policy to Aqueous Vapor, a vape shop. The policy contained a Commercial General Liability part and a Commercial Property Coverage part. While the policy was effective, a customer of Aqueous Vapor, Adam Williams, was injured just after he installed the batteries into his e-cigarette, when the battery exploded in his pocket. Williams suffered second- and third-degree burns which required extensive medical care, including skin grafts. When the explosion occurred, Williams was no longer on the premises of the vape shop.