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Judge rescinds Kinsale fire policy over vape wholesaler’s misrepresentations - Business Insurance Skip to content Register for free Search Search Log In Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2026 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2026 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2026 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2026 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Judge rescinds Kinsale fire policy over vape wholesaler’s misrepresentations by Richard Sine Coverage Disputes Sep 18, 2026 A vape distributor lost the right to collect a $6.3 million warehouse fire claim after a federal judge ruled that it lied on its insurance application and later concealed facts from the insurer during the claim investigation. The decision, in A to Z Wholesale, Inc. v. Kinsale Insurance Company , was issued Wednesday by the Northern District of Illinois. After a fire destroyed A to Z’s warehouse in 2022, the company claimed $6.3 million in losses. Kinsale paid $1.3 million in the next year but refused to pay the remaining $5 million after receiving anonymous tips alleging fraud. A to Z’s founder Ibrahim Shoman had leased the Gary, Indiana, warehouse in 2021 and obtained a Kinsale policy covering up to $7 million in inventory. After A to Z sued for breach of contract and bad faith, Richmond, Virginia-based Kinsale countersued, arguing the policy was void. Kinsale said A to Z falsely claimed on its insurance application to have a safety program with a manual and meetings and that it had five staff and $3 million payroll and $20 million in revenue. In fact, Mr. Shoman was the company’s only employee, the ruling said. Kinsale also said Mr. Shoman concealed that he ran a separate vape company and misrepresented his suppliers and cash investments during the claim investigation. A to Z never disputed these arguments, the judge wrote. He declared them material, meaning that a “reasonably careful and intelligent underwriter would have regarded the facts as stated as substantially increasing the chances of the event insured against.” He also rejected A to Z’s argument that Kinsale had waived its right to rescind the policy by accepting the application and making a partial payment, noting the insurer had repeatedly reserved its rights in writing. The judge declared the insurance policy rescinded and void. A to Z was dissolved in 2025, the ruling said. 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