Exploding vape excluded from policy by ‘products completed’ exclusion

Patrick Bracher, Norton Rose Fulbright

An electronic cigarette store failed in its claim for an indemnity from its insurer for a vape battery that exploded in a customer’s pocket away from its premises.

he policy excluded an event “occurring on any premises other than the designated premises shown in the schedule”.

The products-completed exclusion clearly precluded coverage for bodily injury occurring away from the premises owned or rented by the insured arising out of their product or work.  The product was, as defined, goods or products “sold, handled, distributed or disposed of” by the insured but the injuries sustained by the customer occurred “away from the premises”.

[Scottsdale Insurance Co v Aqueous Vapor LLC case number 4:20-0328: US District for the Western District of Missouri]

First published by: Financial Institutions Legal Snapshot