Key Points
● MUSIC is seeking a declaration that it owes no duty to defend or indemnify i5 Distribution in the related product liability lawsuit.
● The plaintiff alleges that an Elf Bar BC5000 caught fire and exploded in his pocket in November 2022, causing injuries that ultimately led to an above-the-knee amputation.
● MUSIC says the policy excludes injuries arising from tobacco, nicotine or nicotine replacement products and identifies a vaporizer as an example of a product subject to the exclusion.
● MUSIC is currently defending i5 under a reservation of rights, and the federal court has not determined whether the exclusions apply to the claim.
2Firsts
September 10, 2026
According to Law360 on September 8, Mesa Underwriters Specialty Insurance Company, or MUSIC, has asked the U.S. District Court for the Western District of Washington to declare that it has no duty to defend or indemnify vape distributor i5 Distribution Inc. in a product liability lawsuit involving an Elf Bar BC5000 disposable vape.
Plaintiff William Kelley Courser Jr. alleges that an Elf Bar BC5000 distributed by i5 caught fire and exploded in his pants pocket, causing severe burns and ultimately requiring an above-the-knee amputation of his left leg.
The cause of the explosion, the alleged product defects and the connection between the incident and Courser’s injuries remain claims in the underlying lawsuit and have not been established by a final court ruling.
Plaintiff Alleges Elf Bar BC5000 Caught Fire in His Pocket
Courser sued i5 Distribution and Satguru Ji Corporation in Washington state Superior Court in September 2025.
According to his allegations, the Elf Bar BC5000 spontaneously caught fire and exploded in his pants pocket in November 2022, causing severe burns to his legs, torso and parts of his arms. Courser says his left leg later had to be amputated above the knee.
He alleges that the product was defectively manufactured, designed and produced and that it lacked adequate instructions or warnings.
Those claims have not been established in court. The Law360 report did not provide further information about the flavor, manufacturer or cause of the alleged explosion.
MUSIC Seeks Ruling That It Owes No Defense or Indemnity
MUSIC issued a commercial general liability policy to i5 Distribution for the period from June 1, 2022, through June 1, 2023, covering the date of the alleged incident.
According to MUSIC’s federal complaint, the insurer is currently providing a defense to i5 under a reservation of rights. That allows MUSIC to defend the insured while preserving its right to argue that the claim is not covered by the policy.
MUSIC has also filed a separate declaratory judgment action seeking a ruling that it has no continuing duty to defend or indemnify i5 and owes no payment toward any judgment Courser may obtain in the underlying product liability lawsuit.
The federal case is Mesa Underwriters Specialty Insurance Company v. I5 Distribution Inc. et al., case number 3:26-cv-06008.
Law360 also reported, citing i5’s social media, that the business closed in 2025. The report did not characterize the closure as a bankruptcy or explain how it might affect the coverage litigation.
Policy Contains Tobacco and Nicotine Products Exclusion
One of MUSIC’s principal arguments centers on a tobacco, nicotine or nicotine replacement products endorsement in i5’s policy.
According to the federal complaint, the endorsement excludes bodily injury, property damage and personal or advertising injury arising out of the use of, exposure to, existence or presence of, or contact with tobacco, nicotine or nicotine replacement products. It specifically identifies a vaporizer as an example of a product subject to the exclusion.
MUSIC argues that Courser’s alleged injuries arose from a disposable nicotine vapor product and therefore fall within the exclusion.
That is the insurer’s interpretation of the policy and its position in the coverage litigation. The federal court has not ruled that the endorsement relieves MUSIC of its duty to defend or indemnify i5.
Premises Limitation Provides Another Basis for Denying Coverage
MUSIC is also relying on a premises limitation endorsement.
According to the insurer, the policy covers bodily injury or property damage only when the alleged occurrence takes place at a premises listed in the policy.
MUSIC says the explosion alleged by Courser did not occur at a location identified in i5’s policy and therefore falls outside the permitted premises.
This gives MUSIC another asserted basis for denying coverage. The location of the incident and the application of the endorsement to the claim remain subject to the court’s review.
MUSIC Cited Similar Exclusions in Another Vape Coverage Case
MUSIC has previously relied on similar policy language in litigation involving vape-related injuries.
In August 2025, an Oregon federal court entered a default judgment against the injured claimant in Mesa Underwriters Specialty Insurance Company v. Midway Vishions, declaring that MUSIC owed him no indemnity arising from the underlying product liability action.
The policy in that case contained exclusions involving devices used to ingest nicotine or marijuana, including vaporizers, as well as an off-premises limitation. The court concluded that an injury allegedly sustained at the claimant’s home and caused by a vaporizer fell outside the policy.
The case had a materially different procedural posture, however. MUSIC had previously voluntarily dismissed the insured retailer from the declaratory judgment action, and the retailer did not dispute the insurer’s coverage position. The ruling against the injured claimant was entered by default rather than after fully contested litigation.
The facts, procedure and policy wording therefore differ from those in the i5 case, and the Oregon decision does not determine the outcome of the Washington dispute.
Elf Bar BC5000 Has Appeared in a Separate FDA Warning Letter
In an enforcement action unrelated to the parties in this case, the U.S. Food and Drug Administration issued a warning letter to elfbarvapesusa.com in November 2025 identifying Elf Bar BC5000 Blue Razz Ice as an electronic nicotine delivery system product that lacked marketing authorization.
The FDA said that specific product did not have a marketing authorization order in effect and was therefore adulterated and misbranded under federal law.
That regulatory action concerned a particular seller and product and presents a separate legal issue from the product liability and insurance coverage litigation. Neither the Law360 report nor the related materials reviewed by 2Firsts identify the flavor involved in Courser’s lawsuit or establish a causal link between the product’s marketing authorization status and the alleged explosion or injuries.
Liability Insurance Does Not Guarantee Coverage of Product Claims
The case illustrates that purchasing commercial general liability insurance does not necessarily mean vape-related product liability claims are covered. The scope of coverage depends on the wording of the individual policy, its endorsements and the court’s interpretation of those provisions.
For vape distributors and retailers, the relevant questions include how a policy treats nicotine products, product-related claims, covered premises and applicable exclusions—not simply whether the business carries liability insurance.
At this stage, MUSIC has only asserted that the claim is excluded. The federal court has not determined whether the provisions apply or whether MUSIC may avoid its defense or indemnity obligations to i5.
Law360 reported that counsel for i5 Distribution and Courser in the underlying state-court suit had not immediately responded to requests for comment as of September 8. A representative for MUSIC also did not immediately comment.
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Cover image: Law360
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