The Hidden Dangers of E-Cigarettes: A Cautionary Tale for Insurers

The Rise of E-Cigarettes and Their Health Risks

Electronic cigarettes, often touted as a safer alternative to traditional smoking, have recently come under scrutiny due to a surge in lung-related illnesses. The Centers for Disease Control (CDC) has reported 12 deaths and 805 cases of lung injury linked to e-cigarettes as of this week. Of the 373 cases where data on the patients was available, about three-quarters were male, two-thirds were 18 years to 34 years old, and 16 percent were younger than 18 years. The cause of these illnesses has not been definitively linked to any specific ingredients or devices, but health officials continue to investigate. This uncertainty underscores the need for caution when considering the safety of e-cigarettes.

Exploding Batteries and the Risk of Injury

In addition to the health risks, e-cigarette batteries have been known to explode, causing serious injuries and even deaths. A study from George Mason University estimated there were more than 2,000 visits to U.S. emergency rooms from 2015 to 2017 for e-cigarette burns and explosion-related injuries. This adds another layer of risk for insurers, who must consider the potential for liability in cases involving e-cigarette retailers.

Implications for Insurers and Recommendations

Tim Fletcher, Senior Emerging Issues Specialist at Gen Re, suggests that insurers should review their small commercial retail book to determine whether any are selling e-cigarettes. Such retailers could include convenience stores, gas stations, and liquor stores. The blog lists several forms and ISO exclusions for e-cigarettes. The Gen Re blogger reminds insurers that the duty to defend exists in all standard CGL occurrence forms with the potential to incur uncapped defense costs. Given the growing body of evidence linking e-cigarettes to health risks and injuries, insurers should take proactive steps to mitigate their exposure to these risks.

In conclusion, while e-cigarettes were initially marketed as a safer alternative to traditional smoking, recent data suggests that they pose significant health and safety risks. Insurers should carefully review their policies and consider the potential for liability in cases involving e-cigarette retailers. Consumers are advised to exercise caution when using e-cigarettes and to avoid purchasing vaping liquids or devices from unregulated sources.